The Revenue Department has announced a waiver of crypto taxation in 3 ways, allowing investors to bring profits from trading to offset losses – exempt from withholding tax. Transactions made via Exchange under the SEC supervision . Ready to exempt VAT, announced on 31 Jan.
On January 28, 2022, Mr. Ekniti Nitithanpraphas Director-General of the Revenue Department revealed that from the Revenue Department has worked with representatives of the Thai Digital Asset Association Thai digital asset entrepreneurs trade association and representatives from other relevant agencies Both academics, experts
Including a questionnaire has been sent to all parties in the Thai digital asset community regarding the tax collection of digital assets. To summarize the clarity of digital asset taxation. After the digital asset community has grown widely, from the beginning of 2021 there are 1.7 lakh traders, increasing to 2 million today.
Mr. Ekniti said that recently, the Revenue Department has agreed with the private sector to make tax calculations clearer. by determining the form of income tax under current law The Revenue Department has the following guidelines. By specifying the type of income and benefits to cover profits / income from transfers / any benefits from digital assets
2. Methods for calculating costs by using certified accounting standards It can be done in 2 ways, which is the first in, first out (FIFO) method or the Moving Average Cost method. The calculation method can be changed in the next year.
3. Measurement of digital assets at the time of acquisition or the average price on the date of acquisition
“Details are provided in the Taxpayer Guide to Paying Taxes on Digital Assets Trading. which the Revenue Department is considering together with Thai Digital Asset Association and Thai digital asset entrepreneurs trade association and will be published on January 31, 65, in order to keep up with the tax return filing no later than March 30, 65.”
In addition, the Revenue Department has made several reliefs under the current law. and is still within the scope of the authority of the Revenue Department that can operate It is divided into income tax, withholding tax and value added tax. according to the details as follows:
1. In the calculation of assessable income tax (profit), the Revenue Department will propose to issue a ministerial regulation so that the loss can be offset against the profit in the same tax year. which can only meet this condition Digital asset trading center (Exchange) under the supervision of the Securities and Exchange Commission (SEC) only.
2. Withholding tax, in the case of transactions done through an exchange that is regulated by the SEC, the payee will not be able to identify the payee. and do not know the amount of income that must be withheld, resulting in incomplete withholding tax elements, so no withholding tax is required
3. VAT The Revenue Department will propose a royal decree exempting value-added tax (VAT) for transactions made through SEC-regulated exchanges and digital assets issued by the Bank of Thailand (BOT).
“Cryptocurrency tax The law that came into effect in 2018 states that 15% withholding tax must be deducted at the end of the year and must be filed in total to calculate according to their own salary structure rate of 0-35%. In principle, like many other countries, people who Trade even with profit Even if the withholding tax is deducted, if the identity is unknown, the withholding tax will not be deducted, but at the end of the year, it must be included in the calculation as well.”
In the future, the Revenue Department will consider discussing with the digital asset community. and related agencies to study the feasibility of future policy to amend necessary and appropriate laws, such as amending the Revenue Code, Section 50, relating to withholding taxes, through the business operator or Exchange as a deduction and submitting to the Revenue Department Changing the type of VAT collection to a specific business tax (Financial Transaction Tax) for digital assets that are securities, etc.
However, the appropriateness and surrounding contexts must be looked at again.
