In an interesting development, the Thailand Revenue Department has scrapped the 15% capital gains tax imposed on cryptocurrency trading. As there was significant growth in this sector, the government intended to capitalize on the situation, but it received a lot of backlash from investors and the general public.
As of now, the current proposal to tax crypto capital gains at 15% has been scrapped, and a new proposal with revised rates is likely to come up for discussion. As per official guidelines, profits earned from cryptocurrency trading or mining are considered as taxable income.
The Finance Ministry had initially proposed to implement the tax on crypto capital gains from January. However, all the regulations were not clear in this regard as there was still some confusion as to how the tax would be implemented on crypto transactions. One option was to levy the tax on a yearly basis, and the other one was to ask the exchanges to deduct them at the source.
The growth for cryptocurrencies is big in this region, and the government is focused on investor protection measures so that the growth can be sustained in the long run. In the same manner, the government is also looking at issues of money laundering related to cryptocurrencies, and they want to curb such activities with proper regulation. Taxation was also an important agenda considering the growth of the sector, but the rates were very high according to local investors. Due to severe backlash from industry experts, the government has agreed to revise the rates shortly.