The taxation bit under the cryptocurrency domain has by far, been the most confusing, while some countries don’t legalize the use of cryptocurrencies at all, many countries are still struggling with making the taxation rules more clear to the users.
Streaming ahead in the same direction, Thailand’s government now wants to regulate the cryptocurrency market. Although Bitcoin and other cryptocurrencies are used for a lot of purposes, but they have their share for being involved under dark and fraudulent activities owing to the online scams by hackers.
Thailand’s government wants to prevent the usage of Bitcoin and other cryptocurrencies for money laundering, tax evasion, buying and selling of drugs, and other criminal actions.
Apisak Tantivorawong, the Finance minister, made it clear during the weekly cabinet meeting held on 27th March 2018. Under the new laws, people are supposed to pay 7% VAT (Value Added Tax) on all the crypto trades and 15% on Capital gains, he said,
“WHAT it means, If you’re a HODLER, you’ll probably end up paying 15% of the gains to the government. If you are someone who makes payments using cryptocurrencies, you’ll be paying 7% of it as a VAT.”
The Bank of Thailand banned the local banks which invested or traded cryptocurrencies. Not having clear rules and regulations led the Thailand entrepreneurs to register their company in Singapore.
With the above mentioned cryptocurrency tax regulations, it is yet to be known how the government will aim at finding anonymous people owning cryptocurrencies and who are not paying their taxes.
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