Thailand’s government is making progress in the regulation of the cryptocurrency industry by reportedly adopting new tax rules.
According to The Bangkok Post news agency, profits from crypto trading in Thailand now face a 15% capital gains tax.
After last year’s boom in digital assets, the Thai Revenue Department plans to increase its monitoring. According to the report, crypto trade profits are subject to tax collection by the department. This is because they are considered income under Section 40 Royal Decree amending Revenue Code No. 19.
To avoid penalties, the finance ministry advised investors to calculate their cryptocurrency income and to report it in tax declarations by 2022. All taxpayers who have made profits from crypto trading, mining and other operations will be subject to the new tax.
However, cryptocurrency exchanges may be exempted from any new tax requirements.
Akalarp Yimwilai is the co-founder and CEO of the major local exchange Zipmex Thailand. He expressed concern about the uncertainty surrounding crypto tax reporting and how profits are calculated.
“Tax calculations and methods should be simpler, more clear, and easier to understand.” Akalarp stated that many people I know want taxes to be paid, but aren’t sure how to do it.
Related: The Chinese ban on crypto mining in Thailand is reportedly causing crypto mining to rise
This new report is in line with plans by the Thai government to establish “red lines” for cryptocurrency in early 2022. Sethaput Suthiwartnarueput, governor of the Bank of Thailand, announced officially in December that the central bank would release new regulations for the crypto industry by the middle of the year.
Cointelegraph reported that financial authorities in Thailand are considering legislation to tax crypto capital gains at 15%, as previously reported by Cointelegraph.