The Thai government is making strides in regulating the local cryptocurrency ecosystem by reportedly introducing new tax rules for the industry.
Profits from crypto trading in Thailand are now subject to a 15% capital gains tax, according to The Bangkok Post news agency reported Thursday.
The Thai Ministry of Finance is also planning to increase its monitoring obligations according to a booming market for digital assets last year. The department has the power to collect taxes on crypto-business operations as profits from such activities are considered taxable income under Section 40 of the Royal Decree Amending Tax Law No. 19, the report said.
The Treasury recommended investors to calculate and disclose their cryptocurrency income in tax returns in 2022 to avoid legal penalties. The new tax will be levied on all taxpayers who have made profits from crypto, including trading and mining operations.
On the other hand, cryptocurrency exchanges are reportedly exempt from new tax requirements.
Akalarp Yimwilai, co-founder and CEO of major local exchange Zipmex Thailand, raised concerns about the ongoing uncertainty surrounding the process of crypto tax reporting and the calculation of profits.
“Tax methods and calculations should be more concise, clearer and easier to understand. A lot of people I know want to pay taxes but don’t know how to calculate them, ”Akalarp said.
Related: According to reports, crypto mining in Thailand is increasing due to China’s crypto ban
The new report is in line with the Thai government’s plans to define “red lines” for crypto in early 2022. The Governor of the Bank of Thailand, Sethaput Suthiwartnarueput, officially announced in mid-December that the central bank would plan to publish new regulations specific to the crypto industry earlier this year.
As previously reported by Cointelegraph, the tax authorities in Thailand Consider introducing legislation to impose a 15% capital gains tax on crypto since at least March 2018.
