Thailand is stepping up its crypto taxation plans as it prepares regulations for digital asset traders this month in an attempt to further clarify crypto-related activities.
The director general of the Thai revenue department said clear criteria for calculating taxes on profits from crypto trading will be finalized this month.
The statement comes less than a week after the Southeast Asian country’s government unveiled plans to impose a 15% capital gains tax on cryptocurrency traders and miners.
Thai Prime Minister Prayut Chan-o-cha had tasked the revenue department to reflect on the matter and provide clarification to investors and the public, according to a Bangkok Post newspaper. item.
The department has previously been in discussions with the Bank of Thailand, the Securities and Exchange Commission, and the Stock Exchange of Thailand.
On Sunday, the Thai Digital Asset Association contacted the revenue department, for clarification on capital gains and withholding taxes according to the media. The president of the association, Suppakrit Boonsat, said:
“Most cryptocurrency investors are willing to pay taxes but fear their decision violates the tax code.”
The concern of some traders is that back taxes or penalties may be applied to profits and transactions made in previous years.
A government spokeswoman said there was no intention to hamper innovation and development in any industry, including fintech, but warned: “If we are rushing to support [crypto trading] without a thorough understanding, there can be a crypto crisis, similar to a financial crisis.
The new tax would only apply to the profits of traders and miners, not Thailand’s digital asset swaps, the largest of which are affiliated with commercial banks and billionaire business tycoons. Heavy penalties could be imposed on those who fail to comply with the new filing requirements.
Related: Central bank tells Thai banks not to offer crypto trading
The move follows a number of warnings from Thailand’s central bank to commercial banks and businesses regarding the acceptance of digital assets as payment methods.
In December, the Bank of Thailand said it would develop new measures to regulate crypto-related activities for individuals and businesses in what it called “red lines” for the industry.
However, the increased regulatory pressure on the industry is working against the Kingdom’s Ministry of Tourism, which aims to attract crypto whales and digital nomads to the country to help revive its pandemic-stricken tourism sector.