Political parties in Thailand reject the government's plan to tax crypto profit-tax
Political parties in Thailand reject the government's plan to tax crypto profit-tax
While Thailand is preparing to raise a levy to crypto gains, parties have expressed concerns about the current government proposal on both sides of the Ganges. A number of politicians have insisted that important aspects have to be clarified in order to avoid double taxation of income in connection with cryptocurrencies.
Thai politicians warn of negative effects of crypto tax
representatives of parties from various corners of the political spectrum in Thailand shared their disagreements with the government's plan to tax profits from cryptocurrencies. The reactions come according to the latest reports that the finance ministry in Bangkok intends to introduce a 15 percent levy to profits from crypto investment and trading.
On Monday, the Ministry of Finance announced that it would finalize the details of the tax by the end of January. Cryptocurrency miners, dealers and investors will be affected if the proposal comes into force, the Thai Enquirer writes in an article on Wednesday. Dealers must record all their transactions to determine which transactions a withholding tax must be withheld.
Korn Chatikavanij, former investment banker, finance minister and incumbent chairman of the KLA party, recently pointed out that all profitable transactions of the new tax are subject to. However, these profits would also have to be combined with other income for the annual tax return, explained Korn and explained on social media:
I do not agree with the tax authority to raise this tax until further clarifications are available on worrying questions.
Then the value added tax ( ), he noted: "The tax office raises the VAT as if it were a product. Therefore it becomes a double VAT payment for cryptocurrency transactions, in which you have to pay VAT when selling the product and another VAT when selling crypto in Baht. ”
Korn added that crypto sellers have to pay VAT when accepting the draft law without being able to issue a receipt, since the coins are often traded on platforms on which the buyers are not identified. He emphasized that this is one reason why many countries like Singapore, Australia and EU member states change their laws to free crypto transactions from VAT.
Two other political organizations, the Pheu Thai Party and Thai Sang Thai, have also expressed concerns about the tax proposal. Last week, the registrar of the Pheu Thai Party, Jakkapong Sangmanee, noticed that crypto dealers are already obliged to pay income tax. The introduction of another tax, he said, would harm private investors and institutions.
"There is nothing wrong with a policy for the collection of taxes on profits from digital assets as long as it is fair and taxpayers do not use," commented the chairman of the Thai Sang Thai party Sudarat Keyuraphan this week. At the same time, the government sees no chance of increasing income in the country by promoting digital assets. In her view, this will block an income option for the new generation.
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