Thailand Reportedly Withdraws 15% Withholding Tax For Cryptocurrency
Thailand continues to find balance on crypto taxation with the new reports claiming that the nation has halted some of its plans.
According to a Financial Times report, Thailand has ‘axed plans’ to implement a 15% withholding tax on cryptocurrency transactions following pushback from the country’s crypto traders.
Earned income on crypto trading or mining can be reported as capital gains on income taxes, tax officials said on Monday, the report says. With the new rules traders would be able to offset their losses against gains made in the same year.
Thailand’s Revenue Department earlier had plans to strengthen its oversight of cryptocurrency trading due to the significant growth in the size and value of the market in 2021.
However, the move faced enhanced backlash from local digital asset businesses and investors. Even the former head of Thailand’s Securities and Exchange Commission (SEC), Tipsuda Thavaramara, asserted that it would be counterproductive.
Thailand’s financial authorities last week announced plans to regulate the use of digital assets as a method of payment. The Bank of Thailand, Ministry of Finance and the Securities and Exchange Commission said they will issue guidelines for certain digital assets that support the financial system without posing any systemic risk.
Thailand’s population has shown a huge interest for digital assets in the past couple of years, pushing some of the largest crypto exchanges to join the market.
