Thailand wields the tax axe over crypto investors

Thailand wields the tax axe over crypto investorsThailand is planning to tax investors in digital currencies such as Bitcoin at a heavy rate in one of its latest attempts to regulate the market and tap into profits made by crypto investors.

A new draft law stipulates that investors will have to pay seven per cent value added tax on all crypto currency trades, as well as a 15-per cent capital gains tax on their returns. This was announced by Thai Finance Minister Apisak Tantivorawong on March 27.

The new tax regime is part of a wider law that aims at regulating the nascent cryptocurrency market and preventing the expanding sector from being used for money laundering, tax evasion and other criminal activities.

The measures follow the Bank of Thailand’s ban in February on local banks investing and trading in cryptocurrencies, a move caused uncertainty among local investors.

Critics say that the regulations show the increasing concerns of the Thai financial elite and the country’s government about the impact which the disruptive nature of virtual currencies could have on their well-established processes. It is, as one commentator put it, “conservative instincts of the elite that result in draconian regulations” instead of giving innovation in the finance sector room to breathe.

Furthermore, it is by far not clear how such taxes would be collected, given (a) the notoriously inefficient tax collection system in Thailand and (b) the anonymous nature of cryptocurrency transactions by individuals which can’t be tracked to their source.

This means, at the end, officially registered young entrepreneurial cryptocurrency companies will bear the brunt of high taxes, giving them even more reasons to register their businesses in more innovation-friendly countries such as Singapore,



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Thailand is planning to tax investors in digital currencies such as Bitcoin at a heavy rate in one of its latest attempts to regulate the market and tap into profits made by crypto investors. A new draft law stipulates that investors will have to pay seven per cent value added tax on all crypto currency trades, as well as a 15-per cent capital gains tax on their returns. This was announced by Thai Finance Minister Apisak Tantivorawong on March 27. The new tax regime is part of a wider law that aims at regulating the nascent cryptocurrency market and preventing...

Thailand wields the tax axe over crypto investorsThailand is planning to tax investors in digital currencies such as Bitcoin at a heavy rate in one of its latest attempts to regulate the market and tap into profits made by crypto investors.

A new draft law stipulates that investors will have to pay seven per cent value added tax on all crypto currency trades, as well as a 15-per cent capital gains tax on their returns. This was announced by Thai Finance Minister Apisak Tantivorawong on March 27.

The new tax regime is part of a wider law that aims at regulating the nascent cryptocurrency market and preventing the expanding sector from being used for money laundering, tax evasion and other criminal activities.

The measures follow the Bank of Thailand’s ban in February on local banks investing and trading in cryptocurrencies, a move caused uncertainty among local investors.

Critics say that the regulations show the increasing concerns of the Thai financial elite and the country’s government about the impact which the disruptive nature of virtual currencies could have on their well-established processes. It is, as one commentator put it, “conservative instincts of the elite that result in draconian regulations” instead of giving innovation in the finance sector room to breathe.

Furthermore, it is by far not clear how such taxes would be collected, given (a) the notoriously inefficient tax collection system in Thailand and (b) the anonymous nature of cryptocurrency transactions by individuals which can’t be tracked to their source.

This means, at the end, officially registered young entrepreneurial cryptocurrency companies will bear the brunt of high taxes, giving them even more reasons to register their businesses in more innovation-friendly countries such as Singapore,



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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