An official from the Ministry of Finance revealed to local Thai media that crypto-related profits, such as profits from digital currency transactions, will be taxed at a 15% tax rate. After the significant market growth last year, the department intends to improve the monitoring of encrypted transactions in 2022.

Thailand urges crypto traders to report tax returns

According to a report by the Bangkok Post on Thursday, the Ministry of Finance of Thailand recommends that investors state their cryptocurrency income when submitting tax returns this year. The newspaper quoted a source in the ministry as saying that capital gains derived from cryptocurrency transactions will be taxed 15%.

The official clarified that this obligation involves all taxpayers who profit from cryptocurrency transactions, including investors and operators of cryptocurrency mining facilities. However, digital asset exchanges will be exempt from taxation.

The report explained that according to Article 40 of the Royal Decree amending the Tax Code No. 19, profits from cryptocurrency transactions are considered taxable income. In view of the significant expansion of the digital asset market in 2021, the financial authorities now plan to strengthen the supervision of the country’s coin trading activities.

However, as the representatives of the industry pointed out, not all aspects of crypto taxation are clear. Akalarp Yimwilai, co-founder and CEO of cryptocurrency exchange Zipmex, said that there are still many questions about how to calculate profits. One of them is whether the gains from rising prices are considered profits as the US dollar strengthens. He further elaborated:

Taxation methods and calculations should be more concise, clear and easy to understand. Many people I know want to pay taxes, but don’t know how to calculate it.

He added post code I have been trying to develop a system that allows customers to estimate their profits and losses, but it turns out that this task is difficult to solve. “If the tax bureau really has such an advanced data analysis system that can accurately calculate the benefits of cryptocurrency, then sharing with the industry will be a huge benefit,” he pointed out.

Thailand is a major tourist destination, and the authorities have been trying to show a friendly attitude towards more and more cryptocurrency users, especially tourists. In September, the National Tourism Administration Announce It wants to create what it calls a “cryptocurrency atmosphere”, and in November its governor Emphasize Thailand must become a “cryptoactive society”.Last month, Bank of Thailand officials statement Encrypted payment is not illegal.

Do you think the Thai authorities will further clarify the tax rules for cryptocurrency investors? Tell us in the comments section below.

Lubomir Tasef

Lubomir Tassev is a tech-savvy journalist from Eastern Europe. He likes Hitchens’ famous quote: “Being a writer is my nature, not what I do.” In addition to encryption, blockchain and financial technology, international politics and economics Are the other two sources of inspiration.