Thailand has decided to temporarily suspend the introduction of a 15% cryptocurrency tax. The proposal, which was presented earlier this year, drew a lot of objection, but it looks like some sort of tax on cryptocurrencies will still apply.
Thailand will not continue with its 15 percent tax plan on cryptocurrencies after merchants in the country voiced strong opposition, according to the Financial Times. Regarding income tax, the tax authorities have stated that profits from cryptocurrency trading or mining are taxed as capital gains.
The Thai Ministry of Revenue plans to tighten controls on cryptocurrency trading after seeing a significant increase in the size and value of the market in 2021. However, industry stakeholders have issued strong warnings that high taxes could stifle the future development of the emerging sector.
The Thai Ministry of Finance first announced its intention to tax the cryptocurrency market in January, but this has proved difficult in practice. For example, it was not clear whether taxes would be levied on annual reports or whether the government would force stock exchanges to withdraw them at source.
Related Topics: Thailand marks cryptocurrency with “red lines” in early 2022
Last week, the Bank of Thailand, the Treasury Department and the Securities and Exchange Commission announced that they would introduce rules for certain digital assets that do not threaten the financial system.
When it comes to regulating cryptocurrencies, the authorities focus on taxation, protecting investors, and combating money laundering. Thanks to DeFi and Non-Focusable Tokens (NFTs), this asset class has greatly expanded in terms of usage in recent years.
Many countries, especially South Korea, are thinking about how to tax the cryptocurrency market. After much resistance, South Korea has postponed its cryptocurrency tax plan until 2023.