Thai authorities have abandoned plans to levy a 15% income tax on cryptocurrency transactions. This followed warnings from industry representatives about the detrimental impact such a move could have on the sector’s potential, the Financial Times reports.
Under the new rules, income from crypto trading or mining may be treated as capital gains for corporate tax purposes. The measure will allow traders to offset losses against profits recorded in the same reporting period.
\”This is much more investor- and industry-friendly,\” commented Pit Peeradet Tanruangporn, Chief Executive Officer of Upbit and co-chair of the local Trade Association of Digital Asset Operators.
According to Tanruangporn, the Revenue Department has taken into account the position of the non-profit organization. The department will review comments and proposals from interested parties ahead of February 8.
Back in 2018, Thai authorities approved a document under which crypto deals are subject to 7% VAT and a 15% capital gains tax. In January 2022, a Bangkok Post source said the latter option had become operational.
Earlier in January, members of the Thai Democratic Party called for a measured approach to cryptocurrency taxation.
Earlier the local Securities and Exchange Commission mull over regulating the decentralized finance sector. Prior to that, the central bank announced the introduction of rules governing foreign-currency-backed stablecoins, assets, and also algorithmic “stablecoins.”
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