Thailand’s Ministry of Finance has outlined its proposed tax rates for cryptocurrency trading and investments amid the ongoing legislative process to regulate and tax the sector.
On March 27 speaking after a weekly cabinet meeting, Thailand Finance Minister Apisak Tantivorawong announced the government’s tax framework for cryptocurrencies that will include all retail trading and returns on cryptocurrency investments. 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 previously in mid-March, the Cabinet of Thailand – the government’s executive branch – has already approved two royal decree draft concerning the regulation of cryptocurrency transactions and enforcing taxes on crypto-related investments. The move to fast-track the new laws with the introduction of two royal decrees comes at the behest of Thailand’s deputy prime minister Wissanu Krea-ngam calling for the cabinet to “comprehensively regulate” the nascent but growing domestic ICO and cryptocurrency sector.
Korn also warned of the growing trend of Thailand entrepreneurs registering their startups in technology-forward destinations like Singapore that have demonstrated a friendlier regulatory climate for fundraising through initial coin offerings (ICOs).