Thailand's authorities decided to suspend the implementation of a previously-planned cryptocurrency capital gains tax after it was met with a widespread backlash by traders. India decided to go a different route.
What Happened: The Thai Revenue Department had planned to impose a 15% tax on cryptocurrency capital gains but backed down after industry stakeholders issued dire warnings that heavy taxation may stifle the future development of the nascent sector, according to a recent Financial Times report.
While the idea of the previously-planned crypto-specific tax was purportedly abandoned, Thailand still plans to tax other aspects of crypto. Tax officials said that earned profits from cryptocurrency trading or mining are taxable as capital gains.
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At the same time, India’s government announced on Tuesday plans to impose a 30% tax on income gained from digital assets like cryptocurrencies and non-fungible tokens (NFTs) — as Forbes reported on Tuesday. In addition to the tax on capital gains, the state will also deduct an additional 1% from crypto transfers. Additionally, local traders will not be able to offset their losses against any source of income. Even those who receive crypto as a gift would be taxed as a result of the new rules.
India's new crypto tax rules are part of the country's annual budget bill, which is expected to be passed later this month and go into effect on April 1.
Photo: Courtesy of CryptoWallet.com Images on Flickr
