Thailand is in sync with the rest of the world where crypto regulations are concerned. While roughly 100,000 Thai residents actively mine cryptocurrencies, regulatory authorities are moving to regulate cryptocurrencies just like every other country.
Per a source from Thailand’s Finance Ministry, authorities recently imposed a 15% capital gains tax. Those who work with cryptocurrencies should appropriately declare their earnings to prevent legal repercussions, according to the ministry.
The local media report that every taxpayer that profits from crypto in 2022, not excluding miners and investors, is subjected to the withholding tax of 15%. Free of this obligation are cryptocurrency exchanges.
This regulation was foreseen due to the extensive efforts to increase crypto oversight by the Revenue Department during 2022. This department is legally authorized to impose and collect the tax on crypto profits under Section 40 of the Royal Decree amending Revenue Code No.19, where cryptocurrencies are part of the assessable income category.
A Central Tax Court Judge Anon Thadium said that: “sellers can use the deducted tax as a tax credit for a deduction next year under Section 60 of the Revenue Code.”
Whether the government will ask the exchanges to deduct the taxes at the point of sale or whether the tax will be imposed on annual filings remains unknown. Nonetheless, it will undoubtedly have some consequences.