Cryptocurrency-related gains, such as those resulting from trading digital currencies, will be taxed at a rate of 15%, a Finance Ministry official revealed to local press in Thailand. After last year’s significant market growth, the department intends to improve surveillance of crypto trading in 2022.
Thailand urges crypto traders to report earnings on tax returns
Thailand’s Ministry of Finance advises investors to indicate their income from cryptocurrency holdings when filing their tax returns this year, the Bangkok Post reported on Thursday. Capital gains from cryptocurrency trading will be subject to a 15% tax, the newspaper added, citing a ministry source.
The obligation affects all taxpayers who made a profit from cryptocurrency transactions, including investors and operators of crypto mining facilities, the official clarified. However, digital asset exchanges will be exempt from the levy.
The gains from trading cryptocurrencies are considered as evaluable income according to Section 40 of the Royal Decree that modifies the Revenue Code No. 19, the report explains. In light of the significant expansion of the digital asset market in 2021, financial authorities now plan to improve their supervision over currency trading activities in the country.
However, not all aspects of crypto taxation are clear, as an industry representative has pointed out. Akalarp Yimwilai, co-founder and CEO of crypto exchange Zipmex, commented that many questions remain about how to calculate earnings. One of them is whether the gains from a price increase as the US dollar strengthens are considered gains. In addition, he elaborated:
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.
He added that Zipmex has been trying to develop a system that allows its clients to estimate their profits and losses, but the task has been difficult to solve. “If the Department of Revenue really has such an advanced data analytics system that it can accurately calculate the earnings of cryptocurrencies, it would be a huge benefit to share it with the industry,” he noted.
Authorities in Thailand, a major tourist destination, have been trying to demonstrate a friendly attitude towards the growing number of cryptocurrency users, especially among visitors. In September, the country’s tourism authority announced that it wanted to foster what it described as a “crypto-tourism atmosphere” and in November its governor emphasized that Thailand must become a “crypto-positive society.” Last month, Bank of Thailand officials declared that crypto payments are not illegal.
Do you think the Thai authorities will further clarify the tax rules for cryptocurrency investors? Let us know in the comment section below.
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