Thailand has reportedly scrapped plans to impose a 15% withholding tax on crypto transactions following a surge in cryptocurrency trading. The proposal, which was presented earlier this year, triggered a lot of opposition, but it appears that some sort of crypto tax will still be implemented.
Thailand will reportedly not proceed with its 15% cryptocurrency tax plan after traders in the nation expressed strong opposition, according to The Financial Times. On income taxes, tax officials said that earned profits from cryptocurrency trading or mining are taxable as capital gains.
“The revenue department did a lot of homework and reached out to crypto operators as well to get feedback,” said Pete Peeradej Tanruangporn, chief executive of Upbit, a crypto exchange, and co-chair of the Thailand Digital Asset Operators Trade Association. “It is much more friendly to both investors and the industry.”
The Bank of Thailand, the country’s Securities and Exchange Commission, and its finance ministry last week announced plans to issue regulatory guidelines to restrict digital currency payments.
The Thai Finance Ministry first announced its intention to tax the crypto market in January, but it was considered difficult in practice. For instance, it wasn't clear if the taxes would be levied on yearly reports or whether the government will force exchanges to deduct them at the source.
Several nations, particularly South Korea, have been considering how to tax the cryptocurrency market. After a lot of resistance, South Korea has delayed its crypto tax plan until 2023.
