Representatives of parties from various corners of the political spectrum in Thailand have expressed their disagreements with the government’s plan to tax profits from cryptocurrencies. The reactions come after recent reports revealed that the Finance Ministry in Bangkok intends to introduce a 15% levy on profits from crypto investments and trading. More and more countries are now regulating cryptocurrencies.
The Revenue Department will finalize the details of the tax by the end of January.
On Monday, the Revenue Department announced it would finalize the details of the tax by the end of January. Cryptocurrency miners, dealers, and investors will be affected if the proposal is passed into law, the Thai Enquirer writes in an article on Wednesday. Traders will have to keep a record of all their transactions to establish which ones require the withholding of tax. Korn Chatikavanij, former investment banker, finance minister, and incumbent leader of the Kla Party, recently pointed out that all profitable transactions will be subject to the new tax. Thailand central bank is also working on its CBDC.
“There will be a double VAT payment on cryptocurrency transactions.”
The former investment banker wrote on social media, “I disagree with the Revenue Department on collecting this tax until there is further clarification on issues of concern.” He further elaborated, “The Revenue Department is collecting VAT like crypto is a product. Therefore, there will be a double VAT payment on cryptocurrency transactions where you have to pay the VAT when selling the product and paying another VAT from selling crypto in baht.” He added that if the draft legislation is adopted, crypto sellers will have to pay VAT without issuing a receipt as the coins are often traded on platforms where the buyers are unidentified.