Thailand Sets Tax Payment For Cryptocurrency Transactions

The Ministry of Finance in Thailand has announced its tax rates for cryptocurrency trading and investments amid the ongoing legislative process to regulate and tax the sector.

The country’s finance minister Apisak Tantivorawong announced the government’s tax framework for cryptocurrencies that will reportedly encompass all retail trading and returns on cryptocurrency investments. The Nikkei Asian Review reported, that investors will be required to pay 7 percent in value-added tax (VAT) on all crypto trades alongside a 15% capital gains tax on returns.

As reported previously in mid-March, the Cabinet of Thailand – the government’s executive branch – has already approved two royal decree drafts concerning the regulation of cryptocurrency transactions and enforcing taxes on crypto-related investments. The move to fast-track the new laws with the introduction of two royal decrees comes at the behest of Thailand’s deputy prime minister Wissanu Krea-ngam calling for the cabinet to “comprehensively regulate” the nascent but growing domestic ICO and cryptocurrency sector.

According to the report, Thailand’s military government is looking to regulate the cryptocurrency market to prevent the expanding sector from being used for money laundering. While the claim is true to a certain extent, deputy PM Wissanu has previously stressed that the new laws aren’t meant to curb or prohibit cryptocurrency activity or ICOs in Thailand but safeguard adopters instead.

The government’s move to regulate the sector with a conservative, soft-touch approach has found support from former Thai finance minister Korn Chatikavanij who now serves as chairman of the Thai Fintech Association. “They have to be cautious not to allow their conservative instincts to result in draconian regulations”, the former finance minister told Nikkei.

Also Korn warned of the growing trend of Thai enterpreneurs, who have registered their startups in technology destinations like Singapore for fundraising through initial coin offerings.