The Republic of Thailand has broken the news that crypto traders in the country will now have to pay a capital gain tax of 15%, on all of their crypto trades.
Thailand introduces new crypto tax law
On January 6th, the Bangkok Post disclosed that the Thailand Finance Ministry reported that players in the crypto industry such as investors and mining operations would be subject to the new tax law.
The country’s Revenue Department is closely watching the industry, with eyes peeled to make more revenues from the crypto sector, which recorded an impressive trading volume in 2021.
Surprisingly, the new tax law pardoned crypto-asset exchanges. This translates to the fact that crypto exchanges would not pay the 15% crypto tax gain. Notably, several of these exchanges have affiliations with big banks and wealthy business individuals in Thailand.
For example, the foremost bank in Thailand recently acquired the largest exchange in the country, Bitkub, in November by buying a 51% stake in the exchange. Equally, the country’s largest food monopoly CP Group owns Upbit Thailand, one of the country’s notable exchanges.
Another good example is Zipmex Thailand. It has an affiliation with the Bank of Ayudhya. Recall that the exchange raised over $40 million from the fifth-largest bank in August last year.
New crypto law might be complex for laymen — Zipmex CEO
While speaking on the new crypto tax law, the co-founder and CEO of Zipmex, Akalarp Yimwilai, noted that traders are interested in paying crypto tax, but tax methods and calculations are too complex for ordinary people to understand.
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.
Even though the government’s methodology to remove the tax is unclear, it already gives different signals. Thailand is famous as a world tourism center that attracts millions of tourists yearly.
Its tourism ministry, in a bid to revive the tourism industry, is working tirelessly to entice the crypto industry with new initiatives. However, the country’s apex bank appears to be working against it by cracking down on digital assets.
Last December, the Bank of Thailand announced its plan to draw new measures to regulate crypto-related activities for individuals and businesses. In fact, it will soon release a consultation paper on the financial landscape later this month.