The cryptocurrency community in Thailand urged the nation’s Finance Ministry to reconsider its rules for capital gain taxes. For most developers, this is also a move towards creating a more lenient environment for initial coin offerings.
Taxation guidelines that concern cryptocurrencies are an unpleasant subject for all crypto owners. This problem has plagued a lot of countries so far, but it appears that things are getting out of hand particularly in Thailand. The cryptocurrency community is asking the country’s Finance Ministry to consider the modification of its taxation guidelines.
People are especially concerned about the current capital tax which will be imposed on ICOs and cryptocurrency trading. These tax regulations can become a big impediment for startups and other ventures that want to raise funds by using cryptocurrency. It is obvious that the ICO fundraising model is still quite popular in Thailand, in spite of the negative attitude other countries have towards this business model.
It is true that any country that has extremely strict regulatory intentions for cryptocurrency will be intensely scrutinized by the public. While imposing capital gains taxes gives Bitcoin and some currencies some legitimacy, they can become very troublesome for the individuals involved in this industry. If Thailand does not change its current guidelines, there is a high possibility that many companies will leave the country in order to find more accommodation regulations.
Aside from the current taxation guidelines, Thai exchanges and other service providers have to be licensed in order for them to be operable. The process for this kind of license involves applying with the country’s SEC, which posed some problems with a few startups.
The current rules stipulate that anyone who trades cryptocurrencies is subjected to a 7% value-added tax on top of the 15% withholding tax on capital gains. This is seen as a double taxation, which until very recently was also a thing in Australia. After a wave of negative responses, Australia decided to stop taxing double to let the local firms prosper.
It is obvious that in Thailand’ s case will be watched closely by many in the crypto community. With a growing number of countries seeking to regulate cryptocurrency in some way, it is expected that more changes will be coming in the future. Rethinking its tax collection guidelines may help Thailand grow in this market sector, or even help boost its general economy.