As Thailand prepares to impose a tax on crypto profits, parties on both sides of the aisle have expressed concerns about the government’s current proposal. A number of political figures have insisted that important aspects need to be clarified in order to avoid double taxation of income related to cryptocurrencies.
Thai Politicians Warn of Negative Effects of Crypto Tax
Representatives of parties from various corners of the political spectrum in Thailand have shared their disagreements with the government’s plan to tax gains from cryptocurrencies. The reactions come after recent reports emerged that Bangkok’s finance ministry is planning to introduce a 15% tax on profits from crypto investments and trading.
On Monday, the Revenue Department said it would finalize tax details by the end of January. Cryptocurrency miners, dealers and investors will be affected if the proposal passes, writes the Thai Enquirer in an article on Wednesday. Merchants will need to keep a record of all their transactions to determine which ones require withholding.
Korn Chatikavanij, a former investment banker, finance minister and outgoing leader of the Kla party, recently pointed out that all profitable transactions will be subject to the new tax. These profits, however, will also need to be combined with other income for annual tax filings, Korn explained, and said on social media:
I disagree with the Department of Revenue on the collection of this tax until there is further clarification on the issues of concern.
Next is Value Added Tax (VAT), he noted, adding, “The Department of Revenue collects VAT like crypto is a commodity. Therefore, there will be a double payment of VAT on cryptocurrency transactions where you have to pay VAT on the sale of the product and pay another VAT on the sale of crypto in baht.
Korn added that if the bill passes, crypto sellers will have to pay VAT without being able to issue a receipt because coins are often traded on platforms where buyers are not identified. He pointed out that this is why many countries, such as Singapore, Australia, and EU member states, are changing their laws to exempt crypto transactions from VAT.
Two other political organizations, the Pheu Thai Party and the Thai Sang Thai, have also raised concerns about the proposed tax. Last week, Pheu Thai Party Registrar Jakkapong Sangmanee pointed out that crypto traders are already obligated to pay personal income tax. Introducing another tax on top, he said, will hurt retail investors while benefiting institutions.
“There is nothing wrong with a policy of collecting tax on profits from digital assets, as long as it is fair and does not benefit taxpayers,” Thai Sang Thai party leader commented this week. , Sudarat Keyuraphan. At the same time, the government does not see the possibility of increasing the country’s revenue by promoting digital assets. This, in his view, will block an income opportunity for the new generation.
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