The government of Thailand is making progress in regulating the local cryptocurrency ecosystem by enacting new tax rules for the industry.
Profits from cryptocurrency trading in Thailand are now subject to a 15% capital gains tax, The Bangkok Post news agency reported on Thursday.
Thailand’s Revenue Department also plans to step up its monitoring duties following the boom in the digital asset market last year. The department has the authority to collect taxes from crypto operations, as the profits from such activity are considered assessable income according to Section 40 of the Royal Decree that modifies the Revenue Code No. 19, according to the report.
The Ministry of Finance recommended investors to calculate and report their income from cryptocurrencies on tax returns in 2022 to avoid legal penalties. The new tax will be charged to all taxpayers who made a profit from cryptocurrencies, including commercial and mining operations.
On the other hand, cryptocurrency exchanges are exempt from the new tax requirements.
Akalarp Yimwilai, co-founder and CEO of major local exchange Zipmex Thailand, expressed concern about the current uncertainty regarding the crypto tax filing process and how to calculate earnings.
“Tax calculations and methods 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, ”Akalarp said.
Related: Cryptocurrency Mining Reportedly Increased in Thailand Due to Cryptocurrency Ban in China
The new report coincides with the Thai government’s plans to define “red lines” for cryptocurrencies in early 2022. Bank of Thailand Governor Sethaput Suthiwartnarueput officially announced in mid-December that the central bank planned to issue new regulations specific to it. the crypto industry. at the beginning of this year.
As Cointelegraph previously reported, Thailand’s financial authorities have been considering legislation to levy a 15% capital gains tax on cryptocurrencies since at least March 2018.