Thailand is urging cryptocurrency traders to declare profits on their tax returns.

According to the Bangkok Post, the Thai Ministry of Finance has advised investors to declare their cryptocurrency holdings income when filing their tax returns this year. According to the publication, capital gains from cryptocurrency trading would be subject to a 15% tax, citing a ministry source.

According to the official, the responsibility applies to all taxpayers who profited from cryptocurrency transactions, including investors and operators of crypto mining operations. The charge will not apply to digital asset exchanges, though.

According to the article, profits from cryptocurrency trading are taxable under Section 40 of the Royal Decree modifying Revenue Code No. 19. Financial authorities currently seek to tighten their monitoring of coin trading operations in the nation in light of the anticipated development of the digital asset market in 2021.

However, as one industry official pointed out, not all elements of crypto taxes are obvious. Many issues remain about how to quantify earnings, according to Akalarp Yimwilai, co-founder and CEO of crypto exchange Zipmex. One of them is whether price increases resulting from the strengthening of the US currency are considered a profit. He went on to say that tax computations and processes should be more brief, straightforward, and simple to grasp. Many folks I know want to pay taxes but are unsure how to do it.

He went on to say that Zipmex has been working on a system that would enable users to assess their earnings and losses, but that the effort has been challenging. “If the Revenue Department really has such an advanced data analytics system that it can precisely calculate gains from cryptocurrencies, it would be a great benefit to share it with the industry,” he said.

Authorities in Thailand, a popular tourist destination, have attempted to project a positive image of cryptocurrency users, particularly foreigners. In September, Thailand’s tourist administration said that it aimed to develop a crypto-positive ambiance, while the country’s governor highlighted in November that Thailand must become a crypto-positive society. In addition, officials from the Bank of Thailand declared that cryptocurrency payments were not prohibited last month.

LEAVE A REPLY

Please enter your comment!
Please enter your name here