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. Investors will be bound to pay a 7 percent value-added-tax (VAT) on all trades over-and-above 15 percent tax on capital gains, according to the report by Nikkei Asian Review.
Last week, the cabinet of Thailand which is also the executive branch of the country’s government passed two royal decree drafts as a part of the effort to regulate digital currency use in Thailand. 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 draft has received further approval from the Council of State and is now just pending a publication by the Royal Gazette after which it will be formally enacted.
Thailand’s Finance Ministry is also said to be 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.”