Reports coming from Thailand has it that the Asian country has implemented a tax rule that will require the Revenue Department to collect a 15% tax on all profits generated from crypto trades initiated within the jurisdiction. According to media outlets, only crypto miners and investors are obliged to answer to this new rule, with exchanges being exempted from it.
Thailand has long since been in pursuit of enacting some laws that will regulate the local crypto industry. However, they never came up with concrete rules that will be fair to all parties and monitor the industry efficiently simultaneously. The new tax rule is the first step to regulating the ecosystem.
Revenue Department Will Handle Collections
The new tax law authorizes the country’s Revenue Department to collect taxes from mining and trades done in crypto based on Section 40 of the Royal Decree Revenue Code No.19. The financial body urged all investors to effectively report their income from all crypto trades and mining activities conducted in 2022 to avoid stiff penalties.
The surprising news is the omission of exchanges from the new tax law, which are known to generate a considerable amount of profits from daily trades. Despite the exemption, Akalarp Yimwilai of Zipmex exchange has voiced his concerns about the requirements, outlining calculation as a potential problem.
According to him, many people would want to pay taxes, but calculating them will seem complex. He suggests the revenue body should come up with concise, definite, and easy to understand methods to calculate taxes.
Cryptocurrency Legislations Have Been In The Making
Thai Financial bodies didn’t come up with the new crypto tax rule out of the blue moon. The plan has been in motion since 2018.
In March 2018, the Thai government submitted some drafts of crypto laws to the legislators after the latter reiterated that they wouldn’t ban blockchain. Spokesperson to D.P.M. Nathporn Chatusripitak disclosed that the pending royal degrees will be forwarded to the Council of State for approval.
The draft was the first to talk about taxing crypto trades up to 15%. The draft also proposed all parties involved in conducting crypto transactions to register with appropriate authorities.
Thailand has been treading cautiously when it comes to enacting laws that will affect the crypto sector. The country is one of those that are not completely against cryptocurrency, but of the opinion that it needs to be regulated for the protection of its citizens.
The call for the revenue department to up its monitoring came after the crypto market boom in 2021. Thailand SEC reported that the country witnessed a whopping 600% increase in trading volumes on exchanges between November and April. In that span, exchanges recorded $3.9B in trades.