Thailand Imposes 15% Capital Gains Tax on Cryptocurrency
Thailand’s regulator has moved to levy a 15% capital gains tax on all cryptocurrency profits, following the country’s huge growth in the size and value of the country’s digital asset market in 2021.
With this latest development, all taxpayers who benefit from cryptocurrencies, including investors and mining operators, will be liable for a 15% withholding tax, citing an unnamed source within the Ministry of Finance, reported the Bangkok Post. However, crypto exchanges have been exempted from capital gains tax.
Strengthening supervision in the crypto market
The revenue department is looking to step up its oversight of the growing local cryptocurrency trade. Notably, the Thai Department of Taxation may consider the profits of cryptocurrency traders as taxable income under Article 40 of the Royal Decree Amending Tax Code No. 19. A capital gains tax is a tax on the profit made on the sale of a non-inventory asset.
However, it is not clear whether capital gains will only be taken after converting digital currencies into Thai baht or other stablecoins.
Meanwhile, to avoid legal penalties as trading profits, the ministry suggests investors identify their crypto income while paying their taxes in 2022.
BoT against cryptocurrency trading
In December 2021, the Bank of Thailand (BoT) urged Thai banks to avoid direct involvement in cryptocurrency trading, citing the volatile nature of the market.
“We don’t want banks to be directly involved in digital asset trading because banks are (responsible) for customer and public deposits, and there is a risk. If a company is a shareholder, that’s another issue,” BoT senior director Chayawadee Chai-Anan said.
According to the report, around 100,000 Thai citizens are associated with the crypto mining industry.
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