The Ministry of Finance of Thailand has outlined the proposed tax rate for trading and investment of cryptocurrency amid the ongoing legislative process to regulate and impose tax on the sector.
Speaking after a weekly cabinet meeting on March 27, Thailand's finance minister Apisak Tantivorawong announced a government tax framework for the reported crypto currency covering all retail trade and return on investment cryptocurrency. Investors will be required to pay 7 percent in value added tax (VAT) on all crypto trades alongside a 15% capital gains tax on returns, the Nikkei Asian Review reported.
As reported earlier in mid-March, the Thai Cabinet - the executive branch of the government - has approved two royal draft laws to regulate cryptocurrency transactions and impose taxes on crypto-related investments. The transition to Thailand's vice premier, Wissanu Krea-ngam called on the cabinet to "comprehensively manage" the growing but growing sector of domestic ICO and domestic cryptocurrency.
The Nikkei report states that Thailand is a ruling military government that seeks to organize the cryptocurrency market to 'slap investors involved in digital coins with taxes to prevent emerging sectors used for money laundering, tax evasion and other criminal activities'. While the claim was true to some extent, Wissanu's deputy premier earlier stressed that it was not a protocol or protocol in Thailand but a protectionist adoption instead.
The government's move to regulate this sector with a conservative, Thai Korn Chatikavanij who now serves as chairman of the Fintech Association of Thailand. "[T] hey must be careful not to let conservative instincts to produce cruel rules", the former finance minister told the Nikkei.
Korn also cautioned the growing trend of Thai entrepreneurs enrolling their startups in technologically advanced destinations such as Singapore that have shown a more friendly regulatory climate for fundraising through initial coin offerings (ICOs).
