An official at the Ministry of Finance has revealed to the local press in Thailand that crypto-related profits, such as those generated from cryptocurrency trading, will be taxed at a rate of 15%. After significant market growth in the past year, the administration intends to improve monitoring of cryptocurrency trading in 2022.
Thailand urges cryptocurrency traders to report their profits from tax returns
Thailand’s Ministry of Finance is advising investors to indicate their income from cryptocurrency holdings when they file their tax returns this year, the Bangkok Post reported Thursday. Quoting a source from the ministry, the newspaper added that capital gains from cryptocurrency trading will be subject to a 15% tax.
The official explained that the obligation relates to all taxpayers who have made a profit from transactions with cryptocurrencies, including investors and operators of crypto-mining facilities. However, digital asset exchanges will be exempt from the tax.
The report states that earnings from cryptocurrency trading are assessable income under Section 40 of the Royal Decree amending Revenue Law No. 19. In light of the significant expansion of the digital asset market in 2021, the financial authorities are now planning to improve their oversight of currency trading activities in the country.
However, not all aspects of crypto taxation are straightforward, as the industry representative pointed out. Akalarp Yimwilai, co-founder and CEO of crypto exchange Zipmex, notes that many questions remain regarding how to calculate earnings. One is whether a gain from a price increase with a stronger US dollar counts as a profit. He further explained:
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 is trying to develop a system that allows its customers to estimate their profits and losses, but the task has proven difficult to solve. He noted that “if the revenue department really had an advanced data analytics system that could accurately calculate the earnings from cryptocurrencies, it would be beneficial to share it with the industry.”
The authorities in Thailand, a major tourist destination, are trying to show a friendly attitude towards the growing number of cryptocurrency users, especially among visitors. In September, the country’s tourism authority announced its desire to boost what it described as a “crypto-tourism climate” and in November its governor stressed that Thailand should become a “positive crypto community.” Last month, Bank of Thailand officials stated that crypto payments are not illegal.
Do you think the authorities in Thailand will clarify the tax rules for cryptocurrency investors? Tell us in the comments section below.
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