A finance ministry official told local press in Thailand that crypto-related gains, such as profits from trading digital currencies, would be taxed at a rate of 15%. Following significant market developments over the past year, the department intends to improve oversight of crypto trading in 2022.
Thailand urges crypto traders to report profits on tax returns
The Bangkok Post reported on Thursday that the Ministry of Finance in Thailand advises investors to indicate their income from crypto holdings when filing their tax declaration this year. The newspaper quoted a ministry source as saying that capital gains from cryptocurrency trading would be taxed at 15%.
The liability pertains to all taxpayers who profited from transactions with cryptocurrencies, including investors and operators of crypto mining facilities, the official clarified. However, digital asset exchanges will be exempted from the levy.
The report states that profits from cryptocurrency trading are considered income assessable under Section 40 of the Revenue Code No. 19 of the Amendment to the Royal Decree. Given the significant expansion of the digital asset market in 2021, financial authorities now plan to improve their oversight over coin trading activities in the country.
However, not all aspects of crypto taxation are clear, as pointed out by an industry representative. Akalrap Yimvilai, co-founder and chief executive of crypto exchange Zipmex, commented that many questions remain about how to calculate profits. One of them is whether gains from price increases are considered gains when the US dollar strengthens. He further elaborated:
The tax method and calculation should be more concise, clear and easy to understand. I know many people want to pay taxes but don’t know how to calculate them.
He added that Zipmex is trying to develop a system that would allow its customers to estimate their profits and losses but the task has proved difficult to solve. “If the Department of Revenue really has such an advanced data analysis system that it can accurately calculate profits from cryptocurrencies, then sharing it with the industry will be a huge benefit,” he said.
The authorities in Thailand, a major tourist destination, are attempting to display a friendly attitude, especially among visitors to the growing number of cryptocurrency users. In September, the country’s tourism authority announced that it wanted to promote what it described as a “cryptocurrency environment”, and in November its governor insisted that Thailand should become a “crypto-positive society”. Last month, Bank of Thailand officials said that crypto payments are not illegal.
Do you think the authorities in Thailand will further clarify the taxation rules for cryptocurrency investors? Tell us in the comments section below.
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