Digital currency investors in Thailand will soon have a well-defined tax policy starting this month, the country’s tax authorities have revealed. Thailand’s tax department said it was working on clear criteria for calculating withholding tax on profits from digital currency trading, which it expects to finalize before the end of January.
Thai Prime Minister Prayut Chan-o-cha had instructed Thailand’s tax agency to brainstorm with all relevant government agencies and then establish clear guidelines for the digital asset industry.
As Ekniti Nitithanprapas, the chief executive of the tax agency, revealed, she had held discussions with the country’s Securities and Exchange Commission, the Stock Exchange of Thailand and the Bank of Thailand. He now plans to hold a discussion with private sector stakeholders before drafting guidelines for digital currency investors.
According to Ekniti, while the tax authorities have yet to draft all the guidelines, they have set a 15% withholding tax on all digital currency profits, whether mining rewards in block or interest earned from trading the digital assets.
Investment in digital currency in Thailand has exploded in recent years, the taxman noted. However, the sector was still relatively young and everything was new for the tax authorities. Still, the ministry had been keeping a close eye on developments in the sector as it sought to strike the balance between regulation and stifling growth.
“The department will treat everyone fairly and wants to promote economic growth based on innovation,” Ekniti said.
The Thai government fully supports the digital asset industry and wants the revenue department to strike the right balance to avoid stifling innovation, commented government spokesperson Traisuree Taisaranakul, as reported by the local newspaper. Bangkok Post.
In this regard, the Prime Minister instructed the Ministry to ensure that it provides clear guidance on taxation as soon as possible.
“If we rush to support [cryptocurrrency trading] without a deep understanding, there can be a crypto crisis, similar to a financial crisis,” the spokesperson said.
Thailand has been one of the fastest growing digital currency markets in Southeast Asia. And while there are six licensed digital asset exchanges, Bitkub has dominated the market, with some reports claiming it accounts for up to 90% of all trading volume. As CoinGeek reported, Thailand’s oldest bank bought a 51% stake in the exchange for over $500 million.
Digital currencies go beyond traditional boundaries in Thailand and have become an area of interest even for the tourism industry. Following a drop in tourist arrivals to the country, brought on by COVID, the Tourism Authority of Thailand has resorted to turning the country into a digital currency haven to attract new Bitcoin millionaires from around the world and boost its tourism sector by difficulty.
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