Cryptocurrency Taxation has been one of the most confusing topics ever. While many countries now have taxation rules in regards to cryptocurrencies, there are countries which still haven't declared them legal yet. Thailand's government now wants to regulate the cryptocurrency market.
Although Bitcoin and other cryptocurrencies are used for a lot of purposes, but they share a history with the dark web and illegal activities. Thailand's government wants to prevent the usage of Bitcoin and other cryptocurrencies for money laundering, tax evasion, buying and selling of drugs, and other criminal actions.
Apisak Tantivorawong, the Finance minister, made it clear during the weekly cabinet meeting held on 27th March 2018. Under the new laws, people are supposed to pay 7% VAT (Value Added Tax) on all the crypto trades and 15% on Capital gains.
WHAT it means, If you're a HODLER, you'll probably end up paying 15% of the gains to the government. If you are someone who makes payments using cryptocurrencies, you'll be paying 7% of it as a VAT.
During February, the Bank of Thailand also banned the local banks which invested or traded cryptocurrencies. Not having clear rules and regulations led the Thailand entrepreneurs to register their company in Singapore.
It's good to see rules and regulations regarding cryptocurrencies, but the question is, How would the government and other legal institutions find out if someone who holds cryptocurrencies isn't paying the tax. Especially with the anonymity provided by the cryptocurrencies, it's not very easy to find one.
DISCLAIMER: We at CryptoCrimson won't be held responsible for any trade or purchase or sell tip that turns out to be a loss. Investment in cryptocurrencies is risky, so invest only the amount you can afford to lose!