The Thai Finance Minister announced today that the expected Thai tax framework for cryptocurrency has been announced this week, local news agency Nikkei Action Review reported on Friday, March 30th.
Absak Tantifurawong said during a cabinet meeting on March 27 that cryptocurrency trading will be subject to a 7% VAT tax and a 15% return on capital gains tax.
The first draft of the Digital Assets Regulations, issued on March 14, showed that the expected tax ceiling for the cryptocurrency gains tax in Thailand was 15%.
The uncertainties surrounding Thailand's cryptocurrency regulations in the past, especially regarding the IPO, caused the Thai Digital Assets Exchange to suspend the IPO operations in February in order to wait for the Thai Securities and Exchange Commission to issue the regulatory framework.
On Friday, the Nikkei Action Review said the new regulations were designed to "prevent the expanding [digital currency] sector from being used to launder money, tax evasion and other criminal activities." The former finance minister noted.
Korn Chatikavanij, who is currently chairing the Thai Federation of Financial Technology, says the Thai government must "be careful not to allow its conservative inclinations to lead to strict regulations."
Thailand removes two types of taxes to relieve the middle class
The Thai government removed two types of taxes to support local companies, in order to achieve more productive, sustainable and inclusive economic development.
The move was taken as part of the Thai government's economic plan, as the Thai Finance Minister announced on Monday the removal of two barriers to expansion that companies had been facing.
He also said, "At the present time, the costs are often associated with exploring whether you want to invest in new assets or business models that are not deductible for tax purposes.
Business owners tell us this can deter them from spending money looking for the best way to do things. "
He added that we are changing this matter so that companies can deduct the 'feasibility expenses' from their tax bills, including projects that are not going forward.
This measure will be included in the draft tax law that will be presented to Parliament early next year, which means that the change can start from the beginning of the next tax year.