ThailandLocal regulators noted the growth and significant increase in the value of the digital asset market across the country in 2021. Regulators announced that they have decided to impose a 15% capital gains tax on earnings from crypto assets.
So how can this situation create a situation for other countries?
With this latest development, all taxpayers leveraging cryptocurrencies, including investors and mining operators, will be subject to a 15% withholding tax, citing an anonymous source at the Ministry of Finance, the Bangkok Post reported. However, crypto exchanges were exempted from this capital gains tax.
Thailand Increases Supervision of Crypto Markets
The Revenue Department aims to strengthen its oversight over the growing local cryptocurrency trade. Specifically, the Thai Department of Revenue may treat profits from cryptocurrency traders as taxable income under Section 40 of the Royal Decree amending the Revenue Law No. Capital gains tax refers to a type of tax levied on profits from the sale of a non-stock asset.
However, only digital currencies of capital gains can be exchanged in Thai Baht or other stablecoinIt is not clear yet whether it will be charged after converting to .
The Ministry, on the other hand, gives tax returns to citizens in order to protect them from possible penalties. cryptocurrencyHe suggested that they also indicate the revenues from the
Thailand Central Bank Keeps Negative Attitude Towards Trading Crypto Assets
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 do not want banks to be directly involved in digital asset trading because banks are (responsible) for customer deposits and the public, and there is a risk.” “If a company is a shareholder, that’s another matter,” explained Chayawadee Chai-Anan, senior director of BoT.
According to the report, an estimated 100,000 Thai citizens are associated with the crypto mining industry.
We believe that this tax regulation coming from Thailand will be followed closely by other countries. Countries that want to work on regulations, especially in 2022, will make a possible preparation or update existing regulations by examining the tax revenues of the countries that are already taxed.