Final cryptocurrency levy talk on Jan 20

The Department of Revenue plans to end discussion of crypto capital gains tax on January 20, announcing details about the tax collection process and tax rates later this month.

The management held a meeting to speak with digital asset operators, the Thai Digital Asset Association and market participants on January 11, to gather opinions on capital gains tax from cryptocurrency trading.

Management is scheduled to hold a final meeting with market participants on January 20 before releasing information on tax rates and collection methods at the end of this month, said Subakrit Bonsat, president of the Thai Digital Asset Association.

He said that the department must clarify three issues before imposing the tax: How to calculate and pay the tax. How can the tax rate be eased; And whether the tax is considered value-added tax, income tax or withholding tax, as well as how it is collected.

“Our meeting with the Revenue Department went well. It shows that the government is willing to listen to companies and industry participants,” said Mr. Sobkrit.

Proud Limpongpan, chief marketing officer of Zipmex, wants more details from management about tax collection so that investors can properly prepare tax returns.

She said that if the administration cannot reach a mutually beneficial agreement with all market participants, the cryptocurrency market in Thailand will become less attractive to investors who may flee to overseas markets.

Jirayut Srupsrisopa, CEO of Bitkub Capital Group Holdings, said that according to a Bitkub survey, many investors have expressed concern about the uncertainty about tax collection.

Gerriot said these investors want the Department of Revenue to provide more clarity on the matter.

He said many investors do not agree with the 15% tax rate, saying that the higher rate is placing an undue burden on Thai investors while the country’s per capita GDP is already low.

They said the tax should be collected throughout the year, not all at once, while investors still had to bear the full burden of their losses.

According to Mr. Jirayut, some investors said the proposed tax could backfire, leading to lower tax revenue as Thais migrate to foreign digital exchanges or stop investing in digital assets altogether.

Survey respondents said the government should not tax cryptocurrency investors when the industry is still in a nascent stage because it would significantly hamper its growth potential at a time when the country needs more tech startups to compete in the digital economy.

Mr. Jirayut said that the digital asset industry is the backbone of Thailand’s Web 3.0 development and has a chance to become a regional leader if the government provides more support for Thai tech companies to develop robust digital and blockchain infrastructure, creating more opportunities for investors to help fund the industry.