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Thailand's tax authority exempts 7% VAT on individual cryptocurrency investors

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Critics of newly introduced legislation imposing taxes on cryptocurrency transactions have seen the authority Thai tax system to waive a value-added tax (VAT) on individual cryptocurrency adopters.

Initially drafted in mid-March, a government decree on accelerated legislation imposing taxes on investments related to cryptocurrency came into effect on Monday. Thailand's Finance Minister, Apisak Tantivorawong, announced that investors would be required to pay 7% of VAT and a 15% capital gains tax by announcing the government's proposed tax framework for cryptocurrency – encompassing all trade and returns on investment. ]

However, while he was addressing the media at a press conference Tuesday, the director of legal affairs of Thailand's Revenue Department, Saroch Thongpracum, said that 39; Authority would issue new regulations to subject individual investors to 7% VAT. to the nation.

Despite tax relief, the grievor pointed out that individuals will continue to pay a 15% capital gains tax, known as "withholding tax," on income earned in a transaction.

Curiously, the report also suggests that adopters will only see tax breaks on transactions that they transact on government-approved cryptocurrency trading platforms.

An excerpt from the report reads as follows:

The Tax Department will waive value-added tax for persons trading currency exchange-approved foreign exchange contracts approved by the Securities and Exchange Commission (SEC).

In addition, the official added that the tax administration "would revise tax regulations" for private companies that negotiate cryptocurrencies. In the current state of affairs, private companies and individual investors are subject to income tax on cryptocurrency transactions.

ICO Shakedown

The new law also requires that private companies that launch ICOs be required to pay corporation tax on funds raised during fundraising. This contrasts sharply with private companies that issue initial public offerings on their shares in which they are not subject to tax.

Tax policy has been accused of bias against ICO-related fundraisers before the SEC's new fundraising regulation via initial coin offerings, scheduled next month.

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Thailand is expected to issue ICO-related regulations in June.

SEC Secretary- General Rapee Sucharitakul added that a "public hearing" on the new regulations will be held Monday in a consultation period that is expected to last two weeks before detailed regulations will be established in June.

Rapee said:

"The new regulation is intended to protect general investors because only investors who are aware of OIC issues or digital asset transactions should be allowed to perform this type of transaction. "

In addition, a second degree called the "Digital Asset Law" which establishes the SEC as the regulator of cryptocurrency and ICO transactions requires ICO portals, brokers and traders to " obtain licenses "from the Ministry of Finance. ]

"Investors must exchange or deposit their cryptocurrencies with those who obtain the corresponding licenses from the SEC," added a spokeswoman for the Ministry of Finance.

Pictures of Shutterstock.

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