Cryptocurrency-related gains, such as those resulting from trading digital currencies, will be taxed at a rate of 15%, a Finance Ministry official told local media in Thailand. After significant market growth over the past year, the department aims to improve surveillance of cryptocurrency trading in 2022.
Thailand Asks Cryptocurrency Traders To Report Profits On Tax Returns
Thailand’s Ministry of Finance advises investors to indicate their cryptocurrency earnings when filing their tax returns this year, the Bangkok Post reported Thursday. Capital gains from cryptocurrency trading will be subject to a 15% tax, the newspaper added, citing a ministry source.
The obligation concerns all taxpayers who benefit from cryptocurrency transactions, including investors and operators of cryptocurrency mining facilities, the official clarified. However, digital asset exchanges will be exempt from the fee.
The gains from cryptocurrency trading are considered taxable income according to Section 40 of the Royal Decree amending the Revenue Code No. 19, the report explains. In view of the significant expansion of the digital asset market in 2021, financial authorities now plan to improve their supervision of currency trading activities in the country.
Not all aspects of cryptocurrency taxation are clear, as noted by an industry representative. Akalarp Yimwilai, co-founder and CEO of cryptocurrency exchange Zipmex, noted that many questions remain about how to calculate earnings. One is whether the gains from a price increase as the dollar strengthens are considered gains. He further explained:
Tax 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 them.
He added that Zipmex is trying to develop a system that allows its clients to estimate their profits and losses, but the task has proven difficult. “If the Department of Revenue really has such an advanced data analytics system that it can accurately calculate cryptocurrency earnings, it would be of great benefit to share it with the industry,” he noted.
Authorities in Thailand, a major tourist destination, have been trying to demonstrate a friendly attitude towards the growing number of cryptocurrency users, especially among visitors. In September, the country’s tourism authority announced that it wanted to promote what it described as an “atmosphere of crypto tourism,” and in November its governor emphasized that Thailand must become a “crypto-positive society.” Last month, Bank of Thailand officials declared that cryptocurrency payments are not illegal.