The Thai government is making progress in regulating the local cryptocurrency ecosystem by enacting new tax rules for the industry.
Profits from crypto trading in Thailand are now subject to a 15% capital gains tax, according to news agency The Bangkok Post reported Thusday.
Thailand’s revenue department also plans to strengthen its oversight functions following the boom in the digital asset market last year. The department has the power to levy taxes on crypto transactions, as profits from this activity are considered taxable income under Article 40 of the Royal Decree amending the Tax Code No. 19, the report said.
The Ministry of Finance has recommended that investors calculate and report their income from cryptocurrencies in tax returns in 2022 to avoid legal penalties. The new tax will be collected from all taxpayers who have earned crypto profits, including trading and mining operations.
On the other hand, cryptocurrency exchanges would be exempt from new tax requirements.
Akalarp Yimwilai, co-founder and CEO of leading local exchange Zipmex Thailand, raised concerns about continued uncertainty regarding the process of reporting crypto taxes and how to calculate profits.
“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,” Akalarp said.
Related: Crypto Mining Reportedly Rising in Thailand Due to Chinese Crypto Ban
The new report is in line with the Thai government’s plans to set “red lines” for crypto in early 2022. Bank of Thailand Governor Sethaput Suthiwartnarueput officially announced in mid-December that the central bank plans to publish new regulations specific to the crypto industry. early this year.
As previously reported by Cointelegraph, Thai financial authorities have been considering legislation to levy a 15% capital gains tax on crypto since at least March 2018.
