Thailand Crypto Announces Tax Rates for Investments in Monetary Trading
Thailand Crypto Announces Tax Rates for Investments in Monetary Trading
The Thai Ministry of Finance summarized the tax rates recommended for crypto-currency trading and the legal process for regulating the industry.
Thailand's finance minister, Apisak Tantivorawong, spoke after a week-long cabinet meeting on March 27th, the government announced the tax framework, including all retail trade and crypto-currency investments. According to Nikkei Asia, investors will pay 7% of the value added tax (VAT) in all crypto transactions, as well as 15% capital gains tax on deposits.
As previously reported in mid-March, the Thai Council of Ministers approved the decision on the regulation of crypto-currency transactions and the application of taxation on cryptographic currencies. Thailand's deputy prime minister, Wissanu Krea-Ngam, called for a comprehensive arrangement of the new and growing internal ICO and crypto-currency sector.
The military government in Thailand stated that it is necessary to regulate investors who are fluctuating with digital money to prevent the crypto-money market from being used for money laundering, tax evasion and other criminal activities. Deputy Prime Minister Wissanu stressed that the purpose of the new legislation is not to block or prohibit ICOs, but instead to protect the cryptographic currency in Thailand.
The government adopts a conservative, soft-touch approach, supported by the former Thai finance minister, Korn Chatikavanij, who heads the Thai Fintech Association.
Korn also noted that Thai entrepreneurs have seen an increase in access to high-tech destinations such as Singapore, which is well-organized to generate money through initial money supply (ICOs).