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Thai tax agency to finalize digital currency tax guidelines in January 2022

Thai tax agency to finalize digital currency tax guidelines in January 2022
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The country’s tax officer has revealed that crypto investors in Thailand will soon have a well-prepared tax policy from this month. The Thai Revenue Department said it is working on clear criteria for calculating a withholding tax on profits from cryptocurrency trading, which it expects to finalize before the end of January.

Thai Prime Minister Prayut Chan-o-cha instructed the Thai Tax Agency to share ideas with all relevant government agencies and then set clear guidelines for the digital asset industry.

As revealed by Ekniti Nitithanprapas, general manager of the tax agency, it has had discussions with the country’s Securities and Exchange Commission, the Stock Exchange of Thailand and the Bank of Thailand. It now plans to hold a discussion with private sector stakeholders before drafting guidelines for digital currency investors.

According to Ekniti, while the taxpayer has yet to formulate all the guidelines, it has settled on a 15% withholding tax for all cryptocurrency earnings, whether it’s from mining pools or the benefits gained from trading digital assets.

The tax officer noted the crypto-currency investment boom in Thailand in recent years. However, the sector was still relatively young, and it was quite new to the tax department. However, the ministry has been keeping a close eye on developments in the sector as it has sought to find a balance between regulations and stifling growth.

“The department will give everyone fair treatment and want to promote economic growth based on innovation,” said Eknetti.

Government spokesperson Traisuri Taizaranakul commented on the local Bangkok Post, that the Thai government fully supports the digital asset industry and wants the Revenue Department to strike the right balance to avoid stifling innovation.

In this regard, the Prime Minister instructed the department to ensure that clear guidance on taxes is provided as soon as possible.

“If we hurry to support [cryptocurrrency trading] “Without a comprehensive understanding, there may be a cryptocurrency crisis, similar to a financial crisis,” the spokesperson said.

Thailand is one of the fastest growing cryptocurrency markets in Southeast Asia. And despite having six licensed digital asset exchanges, Bitkub has dominated the market, with some reports claiming it accounts for as much as 90% of the total trading volume. As reported by CoinGeek, the oldest Thai bank has bought a 51% stake in the exchange for more than $500 million.

Cryptocurrencies transcend traditional borders in Thailand and have become a focus area even for the tourism industry. After the coronavirus-caused drop in tourist arrivals in the country, the Tourism Authority of Thailand has resorted to making the country a digital currency haven to attract new Bitcoin millionaires from around the world and boost its struggling tourism sector.

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