Survey of 150 CEOs, the tax crackdown ‘Crypto-Stock’

Collection of tax from the sale of shares in the stock exchange (Financial Transaction Tax) at the rate of 0.1% (stock tax) at the Ministry of Finance in the process by Mr. Arkhom Termphiyapaisit Minister of Finance Has previously confirmed that it is necessary to carry out such tax collection. Because it has already been collected, only in the past there was an exemption from storage.

Currently, the Ministry of Finance is studying the form of tax collection. In foreign countries, there are both capital gains and specific business taxes.

while storingCapital Gain Tax from investing in digital assets (cryptocurrency) It is in the process that the Ministry of Finance listens to the opinions of those involved. In the past, the Ministry of Finance insisted that such taxes should be collected in order to create fairness in the tax system.

“Bangkok Business poll 150 CEO Many large business organizations such as manufacturing, agriculture, energy, real estate, exports, finance, retail, services, tourism, automobiles, consumer goods, health and digital IT, have their opinions and recommendations. The issue of stock trading tax is still a hot topic in the capital markets. To get opinions on the advantages and disadvantages of storing or not storing.

The opinion poll took a total of three days from 12-14 Jan 2022 via an online survey. Set the target audience to be the CEO of a business organization.

57.8% CEO opposes stock tax

this survey “Krungthep Turakij” asked the CEO’s opinion on the issue of the government also collecting financial transaction tax, with almost 60% (57.8%) of CEOs opposed to collecting tax on stock trading, while CE. Oh, 42.9% said they agreed.

The reason why the CEO agrees that Stock trading should be taxed, 47.7% viewed it as creating fairness for taxpayers, 46.2% increasing state income, while 44.6% saw it expanding the tax base and bringing the income to the country’s development.

32.3 percent of CEOs said it should be collected because stock market investors are wealthy individuals, while 29.2 percent said taxation was a reduction in stock market speculation.

In addition, some CEOs also look at The taxation also prevents the country’s deposits from flowing. The damage of the deposit will affect the financial liquidity of the system. and is an unexpected threat to the national economy

While some view the taxation as a clarification as a general trading business. but can start from zero and above To maintain growth and to ensure a clear approach to all parties

Affects fundraising – liquidity decreases

However, the reason for the CEO “Disagree” More than 56% think taxation will affect fundraising through the stock market. and other related patterns, while 51% said it would reduce stock market liquidity. because investors do not trade stocks as well as may cause major foreign investors move the investment base

48.9% said they would like to study the information carefully before organizing a store, and 27.7% said that the tax on stock trading increases the burden of investors.

Including some opinions of the CEO stated that the tax on stock trading It closes the opportunity for small business growth. and new innovations some view SET get special privileges To be a source of funding for important economic sectors, but other exchanges or not have such privileges. In principle, if you bring ordinary shares to trade at other exchanges in the country (if any), you will have to pay tax. Therefore, the main issue is the specialty to help drive the country and it is an exchange that is set up according to the Act, not private.

and should study the impact of the overall macroeconomic that will affect the country’s GDP especially in investment and employment Importantly, it should be an investment channel that promotes income for investors.

Offer to keep only 0.05%

The CEO also offered a variety of comments on the stock tax collection. He said that the government should study well before the announcement so as not to affect investor confidence. Including the government sector should not listen to the objection of the stakeholders too much because they have to oppose it already. but should consider tax fairness as the main

While the details of the levy agree that capital gains should not be used for both stock and crypto taxes. that the state is working on Including the stock tax rate that is set at 0.1%, it is a rather high rate and I think it should be collected at the rate of 0.05% only, and should be taxed in the event that the major shareholders sell their shares. and tax exemption for non-major shareholders

Including in the case of collecting should consider the issue of short-term investment should be Withholding Tax at a rate of less than 1% to still support investment savings

The Thai stock market is less attractive.

As for the group that disagrees with the stock tax collection, they see that the listed company has already paid corporate income tax, so other taxes should not be added. Including in the trading of shares in the stock market must pay VAT. Commissions and Automatic Direct Transfer (ATS) fees are already in place, so there are several costs that investors are responsible for.

Including stock tax is an issue that affects big investors and if collecting a lot may cause big investors to disappear from the Thai stock market. This would be a tax on stocks even though the Thai stock market is less attractive than many countries in the region. And if the above tax is collected more, it will further reduce the attractiveness of the Thai stock market.

52.7% CEOs Support Crypto Taxation

According to the survey, more than half of CEOs, or about 52.7 percent, support the digital asset tax.Cryptocurrency), while 48% of CEOs agree that they should not keep

The reason why the CEO thinks More than 62.4% of cryptocurrencies should be taxed, seen as creating a global standard for digital asset taxation, followed by 51.8 percent of CEOs who said the tax would help prevent evasion. Avoiding taxes that could lead to more underground transactions and the state will lose income in this respect, both considering that if there is a tax The state will receive more income into the country.

While nearly 50% (49.5%) of CEOs agree the tax will help prevent money laundering, and 34.1 percent of CEOs view it as preventing speculation in the crypto market.

Most of the view of the CEO That supports taxation because it extracts speculation in the crypto market. that does not bring real economic benefits And it may also be a way to transfer money outside the country as well. While the state is able to control digital assets, they believe that in the future, this tax must be collected anyway. and for the equality of taxation in the country as well

‘Disagree’ fears blocking the new era of finance

CEO section at “Disagree” on cryptocurrency taxation, 67.1% of CEOs say taxation hinders the driving force of innovation in the financial world. Pulling the country backwards, while 50 percent of CEOs view it as a means to stem the growth of young investors, startups, and SMEs.

35.4% of CEOs said that the digital economy dream was put off, 32.9% of CEOs said taxation would immediately affect exchanges in Thailand. damage The state’s tax collection has been reduced.

However, there is an additional opinion that if the state will collect taxes Losses should be taken into account as well. While there is an opinion that disagreeing because they still lack the ability to calculate taxes correctly and no software or how to calculate it in its entirety The relevant laws are not yet supported.

CEO sees new investment channels This should be an investment channel that promotes income for investors. and if the state levies taxes will hamper the transaction Make people less interested in new investment styles

Some CEOs view the issue of taxation this time. The state is not yet clear on the principle, while eliminating the tax will protect the benefit of public deposits. that may be damaged by depositing money to buy crypto issued abroad and without an organization Trustworthy governance. Importantly, the CEO thinks that the state should study more in detail. and clearly organize the storage structure

Collecting 1-5% Crypto Tax

When asked if the government insists on taxing digital assets What should be the right rate? More than half of the CEOs, or 51.4%, said they should be kept at a rate of 1-5%, while the latter said it should be kept at a rate of 10% or more. should be given at a fair rate taxpayers accept and should be collected from profit only, that is, the method of storage must be clear It is collected from the profits that are really received. by taking the loss into account as well

At the same time, should study taxation of other countries in other regions. Some offer a tax rate of 0.5-2.0%, including using the same rate as other securities, such as bonds, or using a Financial Transaction Tax of no more than 1%.

When asked what digital asset tax they thought investors would change their investment strategy, 64.6 percent of CEOs said investors would immediately move on to offshore platforms, while 38.1 percent said investors to find a way to evade taxes and use crypto trading methods without converting to baht

Only 21% of CEOs still believe that If the state collects digital taxes Investors will continue to invest in the country as usual. and pay taxes as required by the state

Recommend an acceptable rate

The CEO further commented that Collect such taxes, but should find a way to calculate taxes that are fair to investors. There are rules for calculating acceptable and realistic tax rates. as well as having to be carefully considered in order not to affect the overall investment

While new investment models are emerging The government should oversee, but not guide. It should be allowed to change on its own. Just make it clear whether it’s against the law or not. To create justice for other business operators who are subject to the same law But it must not create new rules to govern growth and development.

and should be classified as having multiple groups of digital assets with regulatory criteria that are comparable to the present only with changes in technology

Including a proposal from the CEO to see how to store abroad especially in countries with development levels similar to Thailand. Including the storage should be divided into phases to adjust the investors.

must not affect foreign competition

In addition, the collection must consider the overall taxation of the country to be balanced. Including there should be a storage rate that has been adjusted up or down according to the situation. And the filing rate should be at a level that makes digital asset investment in Thailand competitive with other countries.

Additionally, it is proposed to levy a trading tax on crypto assets along with other, less high fees, such as 0.1% on all orders.

In addition, the government should control the private sector who uses money to buy foreign digital assets. Because there is a high profit but high risk. If the digital asset trading market cap is too large, it may affect the Thai economy. because it is bringing money to invest in foreign countries Including the current digital asset situation is fragile. Sometimes it’s like gambling because there are no economic factors involved. and the government should expedite the issuance of the digital baht for investors to use as a reference value in the Thai digital asset market

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