Thailand will not levy a 15% tax on cryptocurrencies

The decision came amid a warning from Thailand’s crypto community

02.02.2022 - 07:10

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What’s new? According to the Financial Times (FT), the Thai authorities have rejected the introduction of a 15% income tax on virtual currency transactions. The officials took into account warnings from the local community about the negative impact of such a move on the industry’s development.

News source on the FT website

How will the tax be calculated? As previously stated, Thailand will regulate cryptocurrency as a means of payment. The authorities planned to introduce not only VAT but also a 15% tax on transactions with digital assets. The proposal drew a negative reaction from the community, leading to further discussions. The new regulatory option includes replacing the income tax with a profit tax. In this, citizens will be able to offset losses by, for example, reducing the positive financial result of one exchange by the amount of the negative result of another exchange.

Thailand’s Department of Revenue will announce the final version of all the changes later in February, but already now the crypto industry’s representatives have welcomed the proposed changes. The 15% tax waiver will allow local companies to develop blockchain and digital assets in the country, attracting promising talent from abroad.

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