Authorities in Thailand have decided to implement a taxation structure on all cryptocurrency gains, levying 15 percent capital gains on all crypto profits.
Citing an anonymous source within the Finance Ministry, Bangkok Post reported that retail cryptocurrency traders and crypto miners within the country will come under the new tax structure. However, crypto exchanges have been exempted from it.
The new rules, which are yet to be announced officially, will require Thai taxpayers to disclose all of their cryptocurrency gains that will be subject to a 15 percent withholding tax.
A Challenging Rule
Properly taxing profits from cryptocurrency has always been tough for taxmen across the world. However, the Thai Revenue Department can consider profits from cryptocurrency trading as taxable income under Section 40 of the Royal Decree amending Revenue Code No.19.
This move came as the Thai authorities want to strengthen their surveillance over the growing local crypto industry.
However, experts are still concerned over how the new taxation rules will be implemented, considering the decentralized nature of cryptocurrencies . Additionally, It is not clear if the capital gains will be levied only after the digital currencies were converted to Thai baht or other stablecoins as well. Moreover, disclosure of activities of Thai crypto traders on overseas crypto exchanges will be another challenge to overcome.
“Tax methods and calculations should be more concise, clear and easy to understand. Many people I know want to pay taxes but don't know how to calculate them,” said Akalarp Yimwilai, the Co-Founder and Chief Executive of Zipmex Thailand, a local crypto exchange .
Meanwhile, other jurisdictions are working towards bringing a solid crypto tax regime but are mostly facing roadblocks. South Korea, which has already introduced a crypto tax bill, deferred its decision until 2023 for amending the draft bill.
