As Thailand prepares to tax crypto profits, parties on both sides of the aisle have expressed concerns about the government’s current proposal. A number of political figures insisted that important aspects should be clarified in order to avoid double taxation of income associated with cryptocurrencies.
Thai politicians warn of negative effects of crypto tax
Party representatives from across the political spectrum in Thailand have shared their disagreements with the government’s plan to tax earnings from cryptocurrency. The reactions come after recent reports revealed that the Ministry of Finance in Bangkok intends to impose a 15% tax on profits from cryptocurrency investments and trading.
And the Revenue Department announced, on Monday, that it will finalize the tax details by the end of January. Cryptocurrency miners, traders and investors will be affected if the proposal is passed into law, the Thai Enquirer wrote in an article on Wednesday. Merchants will have to keep a record of all their transactions to determine which ones require withholding taxes.
Korn Chatikavanij, a former investment banker, finance minister and current KLA leader, recently indicated that all profitable transactions will be subject to the new tax. However, those earnings should also be combined with other income for annual tax returns, Korn explained, stating on social media:
I do not agree with the Department of Revenue on the collection of this tax until there is more clarification on the issues of importance.
Then comes the Value Added Tax (VAT), he noted, explaining: “The Revenue Department collects VAT like cryptocurrency as a product. Therefore, there will be a double payment of VAT on cryptocurrency transactions as you have to pay VAT when Sell the product and pay other VAT from the sale of cryptocurrencies in baht.
Korn added that if the draft legislation is passed, cryptocurrency sellers will have to pay VAT without being able to issue a receipt, as coins are often traded on platforms where buyers are not aware. He emphasized that this is the reason why many countries, such as Singapore, Australia and EU member states, have amended their laws to exempt crypto transactions from VAT.
Two other political organisations, Pheu Thai Party and Thai Sang Thai, have also raised concerns about the tax proposal. Last week, Pheu Thai Party registry head Jakkapong Sangmanee noted that cryptocurrency traders are already required to pay personal income tax. He said introducing another tax on the top would hurt retail investors while benefiting institutions.
Thai party leader Sang Thai Sudarat Keyuraphan commented this week, “There is nothing wrong with the policy of collecting taxes on profits from digital assets, as long as it is fair and does not benefit the taxpayer.” At the same time, the government does not see an opportunity to increase income in the country by promoting digital assets. And this, in her opinion, will prevent income opportunities for the new generation.
Do you think Thailand will adopt the new tax on capital gains from cryptocurrency? Share your predictions in the comments section below.
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