Thailand Withdraws Planned 15% Capital Gains Tax on Crypto Transactions

After feedback from investors on Thailand’s planned 15% capital gain tax on crypto transactions, the Southeast Asian nation has now dropped its earlier plans to do so.

According to a Monday report by the Financial Times (FT), Thailand has halted plans to levy a 15% capital gains tax after complaints from crypto traders.

Investors that generate profit from investing in digital assets or mining operations could report it as capital gains on their income taxes, Thai tax officials noted.

Under the new rule, the Thai revenue department stated that investors will be allowed to offset their annual losses against profits generated in the same year.

The department added that these changes were made to meet the demands of crypto traders, who said that exorbitant tax would negatively affect the growth of an emerging industry.

Commenting on the development, Pete Peeradej, CEO of Upbit exchange and co-chair of the Thailand Digital Asset Operators Trade Association, said:

“The revenue department did a lot of homework and reached out to crypto operators as well to get feedback… “It is much more friendly to both investors and the industry.” 

The new changes come just a few weeks after Thailand tax officials announced that a 15% capital gain tax will be imposed on crypto transactions. Officials noted that they plan to monitor the crypto space due to the exponential surge in its market size in 2021.

Meanwhile, Thai regulators are not wasting much time regulating the crypto space, as they continue to impose stricter policies on the emerging asset class.

In December 2021, the Bank of Thailand (BoT) banned banks from direct involvement in digital asset trading, citing risks associated with crypto investments.

Just recently, the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Ministry of Finance (MOF) released a joint press release to regulate the use of crypto as a means of payment in a bid “to avert potential impacts on the country’s financial stability and economic system.”

Regulators have requested stakeholders’ comments, which are to be submitted on or before February 8, 2022.