Thailand is the latest country to join its peers for introducing taxes on profits made through crypto investments. Amidst the undergoing measures of regulating and taxing the crypto sector, Thailand’s Ministry of Finance has recently created the framework of its proposed taxes.
On March 27, in a cabinet meeting, Thai finance minister Apisak Tantivorawong announced that the Crypto Transactions tax framework will encompass all the returns on crypto investments as well as retail trading. According to the Nikkei Asian Review, investors must pay a 7 percent value-added tax (VAT) on all trades in addition to a 15 percent tax on capital gains.
Last week, Thailand’s cabinet, the country’s executive branch, passed two royal decree drafts as part of its effort to regulate digital currency use. One of the two decree drafts especially eyed for Crypto Transactions regulations in order to prevent tax evasion and money laundering.
The new law to comprehensively regulate cryptocurrencies and digital tokens is necessary to prevent money laundering, tax avoidance and crime…The new law is not meant to prohibit cryptocurrencies, initial coin offerings (ICOs) and other digital asset-related translations, but to protect investors,
conveyed the finance minister
The local news publication Bangkok Post further noted that the Council of State has approved the draft, and it now awaits publication by the Royal Gazette before formal enactment.
Thailand’s Finance Ministry is also working in coordination with the Thai Securities and Exchange Commission (SEC) on… “laws that require all digital asset transactions, including those of digital asset exchanges, brokers and dealers, to be registered with relevant authorities.”