Thailand’s Revenue Department Weighs Tax Measures Aimed at Crypto Trading
Thailand is weighing up measures either to tax revenue from each crypto transaction or only profits
Building of Revenue Department, Ministry of Finance. Thailand. Credit: Shutterstock
- Thailand’s tax office is considering measures to allow crypto traders to deduct their losses ahead of withholding tax calculations
- Thailand’s finance minister said taxation of crypto is not aimed at dampening profits earned from trading activity
The Revenue Department of Thailand is considering a proposal from private entities that could see cryptocurrency traders deduct their losses before calculating withholding tax from their remaining profits.
According to a report by the Bangkok Post on Wednesday, the new measures are being considered alongside the country’s plan to end a 30-year tax waiver on shares sold on Thailand’s stock exchange.
Thailand’s finance minister Arkhom Termpittayapaisith said the reforms are aimed at adding additional revenue for the nation’s development and the taxing of crypto profit is not designed to stifle the industry’s booming valuations.
The move is being credited, by the minister, as an attempt to expand the tax base in a bid to accrue greater revenue generated from tax receipts.
“This move is a strong confirmation from Thailand’s Finance Ministry of the significant uncaptured tax revenue from crypto trading,” said Maryna Kovalenko, Tax Director at Kova Tax and Syla. “This is an opportunity for increasing tax revenue that many governments globally are now starting to wake up to.”
The department previously said crypto taxation applies to profits calculated from each transaction and incurs a 15% withholding tax. A 15% capital gain tax rate on crypto trading activity came into effect last Wednesday.
Withholding tax refers to the amount of federal income tax withheld from an employee’s or investor’s paycheck from the profits they receive.
Termpittayapaisith declined to comment, in the report, on whether the department would consider waiving the measures for crypto investors whose annual incomes accrued from their activities stood at less than 200,000 baht (US$6,000).
Under the current regime, Thailand’s tax office is vested with powers to collect taxes from crypto trading, mining and/or interest earned as profits which are considered as assessable income.
A set of criteria for calculating withholding tax on crypto profits is expected to be issued later this month, according to the report.
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