Crypto Investors in Thailand to Pay 15% Capital Gains Tax, Report Unveils – Bitcoin Taxes News
Crypto-related profits, such as those resulting from trading digital currencies, will be taxed at a rate of 15%, a finance ministry official revealed to local press in Thailand. After significant market growth last year, the department intends to improve oversight of crypto trading in 2022.
Thailand urges crypto traders to report profits on tax returns
Thailand’s finance ministry advises investors to report their income from their crypto holdings when they file their tax returns this year, the Bangkok Post reported on Thursday. Gains from cryptocurrency trading will be subject to a 15% tax, the newspaper added, citing a ministry source.
The obligation applies to all taxpayers who have made a profit from transactions with cryptocurrencies, including investors and operators of crypto-mining facilities, the official said. Exchanges of digital assets, however, will be exempt from the tax.
Profits from cryptocurrency trading are considered taxable income under Article 40 of the Royal Decree amending Income Code No.19, the report explains. Given the significant expansion of the digital asset market in 2021, financial authorities now plan to improve their oversight of coin trading activities in the country.
However, not all aspects of the taxation of crypto are clear, as an industry representative pointed out. Akalarp Yimwilai, co-founder and managing director of crypto exchange Zipmex, noted that there are still many questions about how to calculate profits. One of them is whether the gains from an increase in prices as the US dollar strengthens are considered a profit. He precised :
Tax methods and calculations should be more concise, clear and easy to understand. A lot of people I know want to pay taxes, but don’t know how to calculate them.
He added that Zipmex had tried to develop a system that would allow its customers to estimate their profits and losses, but the task proved difficult to solve. “If the revenue department really has such an advanced data analysis system that it can accurately calculate cryptocurrency earnings, it would be a great advantage to share it with the industry,” he said. he noted.
Authorities in Thailand, a major tourist destination, have tried to show a friendly attitude towards the growing number of cryptocurrency users, especially among visitors. In September, the country’s tourism authority announced that it wanted to foster what it described as an “atmosphere of crypto-tourism” and in November, its governor stressed that Thailand must become a “crypto-company. positive “. Last month, officials at the Bank of Thailand said crypto payments are not illegal.
Do you think the Thai authorities will further clarify the tax rules for cryptocurrency investors? Tell us in the comments section below.
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