[ad_1]
As Thailand prepares to tax crypto profits, parties on both sides of the aisle have expressed concern over the government’s current proposals. Some politicians insist that important aspects need to be clarified to avoid double taxation of cryptocurrency-related income.
Thai politicians warn of negative impact of crypto tax
Party representatives from all corners of Thai politics have expressed their disagreement over the government’s plans to tax cryptocurrency gains.These reactions follow recent reports disclose Bangkok’s Ministry of Finance intends to impose a 15% tax on profits from crypto investments and trading.
On Monday, the IRS announced it would finalize details of the tax by the end of January. Crypto miners, traders and investors will be affected if the proposal passes into law, Thai Enquirer wrote in an article on Wednesday. Traders must keep records of all transactions to determine which transactions are subject to tax withholding.
Former investment banker, finance minister and current Kla party leader Korn Chatikavanij recently noted that all lucrative deals will be subject to the new tax. However, those profits must also be combined with other income on the annual tax return, Cohen explained, saying on social media:
Until further clarification of concerns is provided, I do not agree with the Inland Revenue Department to impose this tax.
then VAT (VAT), he pointed out, elaborating: “The tax office is collecting VAT, just like cryptocurrency is a product. Therefore, cryptocurrency transactions will pay double VAT, you have to pay VAT when you sell the product and pay it at the end of Pay another VAT when selling cryptocurrencies in Thai baht.”
Korn added that if the draft legislation is passed, cryptocurrency sellers will have to pay VAT without being able to issue a receipt, as tokens are often traded on platforms where buyers are unidentified. He emphasized that this is why many countries, including Singapore, Australia, and EU member states, are amending their laws to exempt cryptocurrency transactions from VAT.
Two other political groups, Pheu Thai and Thai Seng Thai, have also raised concerns about the tax proposal. Last week, Pheu Thai registrar Jakkapong Sangmanee said cryptocurrency traders are already obliged to pay personal income tax. Introducing another tax on top would hurt retail investors while benefiting institutions, he said.
“There is nothing wrong with the policy of taxing profits from digital assets, as long as it is fair and does not take advantage of taxpayers,” Sudarat Keyuraphan, leader of the Taysang Thai party, commented this week. At the same time, the government sees no opportunity to increase domestic revenue by promoting digital assets. In her view, this will hinder income opportunities for a new generation.
Do you think Thailand will impose a new tax on capital gains from cryptocurrencies? Share your expectations in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned herein.
[ad_2]
Source link
