Thailand to Impose 15% Capital Gains Tax on Crypto Profits
- Retail crypto traders and miners will come under the new tax regime.
- Crypto exchanges will be exempted.
Authorities in Thailand have decided to implement a taxation structure on all cryptocurrency gains, levying 15 percent capital gains on all crypto profits.
Citing an anonymous source within the Finance Ministry, Bangkok Post reported that retail cryptocurrency traders and crypto miners within the country will come under the new tax structure. However, crypto exchanges have been exempted from it.
The new rules, which are yet to be announced officially, will require Thai taxpayers to disclose all of their cryptocurrency gains that will be subject to a 15 percent withholding tax.
A Challenging Rule
Properly taxing profits from cryptocurrency has always been tough for taxmen across the world. However, the Thai Revenue Department can consider profits from cryptocurrency trading as taxable income under Section 40 of the Royal Decree amending Revenue Code No.19.
This move came as the Thai authorities want to strengthen their surveillance over the growing local crypto industry.
However, experts are still concerned over how the new taxation rules will be implemented, considering the decentralized nature of cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
Read this Term. Additionally, It is not clear if the capital gains will be levied only after the digital currencies were converted to Thai baht or other stablecoins as well. Moreover, disclosure of activities of Thai crypto traders on overseas crypto exchanges will be another challenge to overcome.
“Tax methods and calculations should be more concise, clear and easy to understand. Many people I know want to pay taxes but don't know how to calculate them,” said Akalarp Yimwilai, the Co-Founder and Chief Executive of Zipmex Thailand, a local crypto exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term.
Meanwhile, other jurisdictions are working towards bringing a solid crypto tax regime but are mostly facing roadblocks. South Korea, which has already introduced a crypto tax bill, deferred its decision until 2023 for amending the draft bill.
Authorities in Thailand have decided to implement a taxation structure on all cryptocurrency gains, levying 15 percent capital gains on all crypto profits.
Citing an anonymous source within the Finance Ministry, Bangkok Post reported that retail cryptocurrency traders and crypto miners within the country will come under the new tax structure. However, crypto exchanges have been exempted from it.
The new rules, which are yet to be announced officially, will require Thai taxpayers to disclose all of their cryptocurrency gains that will be subject to a 15 percent withholding tax.
A Challenging Rule
Properly taxing profits from cryptocurrency has always been tough for taxmen across the world. However, the Thai Revenue Department can consider profits from cryptocurrency trading as taxable income under Section 40 of the Royal Decree amending Revenue Code No.19.
This move came as the Thai authorities want to strengthen their surveillance over the growing local crypto industry.
However, experts are still concerned over how the new taxation rules will be implemented, considering the decentralized nature of cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw
Read this Term. Additionally, It is not clear if the capital gains will be levied only after the digital currencies were converted to Thai baht or other stablecoins as well. Moreover, disclosure of activities of Thai crypto traders on overseas crypto exchanges will be another challenge to overcome.
“Tax methods and calculations should be more concise, clear and easy to understand. Many people I know want to pay taxes but don't know how to calculate them,” said Akalarp Yimwilai, the Co-Founder and Chief Executive of Zipmex Thailand, a local crypto exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term.
Meanwhile, other jurisdictions are working towards bringing a solid crypto tax regime but are mostly facing roadblocks. South Korea, which has already introduced a crypto tax bill, deferred its decision until 2023 for amending the draft bill.