In 2021, the Thai government expressed its interest in promoting cryptocurrencies but is now telling traders to pay a tax. The co-founder and CEO of Zipmex Thailand said an advanced data analytics system would help calculate cryptocurrency earnings accurately.
Cryptocurrency users in Thailand will now have to pay a tax of 15% on their earnings. According to the newly established rules, all profits from operations with cryptocurrencies will be subject to that compulsory contribution. That decision will apply to all cryptocurrency users, without exception.
Sommai Siriudomset, a spokesperson from the Revenue Department, recently said that they advise investors to indicate their income from cryptocurrency holdings. Specifically, she stated that traders in Thailand would have to pay a 15% tax on their revenues from crypto assets.
The strategic advisor pointed out that the department will summon the related parties if they find any irregularity in the payment of taxes. She highlighted that they would request the financial institutions and trading platforms involved in that situation to provide information.
In September 2021, the Thai government expressed its interest in promoting cryptocurrencies. However, they are now telling the taxpayers of the country who benefit from those assets to pay a tax. They argue that the cryptocurrency industry has become increasingly significant in the financial system.
Cryptocurrency Users in Thailand Will Have to Pay a 15% Tax
The Revenue Department of Thailand plans to improve the existing security in the cryptocurrency industry. For that reason, it has decided to force the users of those assets to agree to pay additional taxes in 2022.
They stressed that this compulsory contribution would apply to all taxpayers who have profited from transactions with cryptocurrencies. They will include investors and operators of mining facilities but exempt exchanges from the measure.
Therefore, the Revenue Department of Thailand decided to collect a tax of 15% on the profits from cryptocurrencies. However, it is not clear when they refer to those benefits. Besides, many expect them to control and oversight in the direction of the crypto space to increase.
How They Will Calculate the Profits from Cryptocurrencies
The gains from crypto assets are the income assessable under Section 40 of the Royal Decree amending Revenue Code No. 19. Amid the significant expansion of that market in 2021, the Thai financial authorities plan to improve their supervision of cryptocurrency trading activities.
Akalarp Yimwilai, co-founder and CEO of Zipmex Thailand, thinks tax calculations and methods should be concise and easy to understand. He noted that several people are willing to pay taxes but have no idea how to calculate them.
In addition, he said that an advanced data analytics system would allow the Revenue Department to calculate cryptocurrency earnings accurately. Besides, he believes it would be beneficial to share such an invaluable tool with the sector.
Sanjay Popli, the co-founder of Cryptomind and owner of Merkle Capital, expressed his viewpoint in that regard. He mentioned that many investors still do not know how to calculate profits and losses from trading cryptocurrencies.
The relevance of cryptocurrencies in the economic system is increasingly evident, which regulators do not overlook. For that reason, the Revenue Department of Thailand decided to apply a tax on those profiting from crypto assets.
By Alexander Salazar
