Thailand introduces 15 per cent tax to regulate cryptocurrencies

BANGKOK, May 16 (TNA) -- Thailand introduces 15 per cent capital gains tax to regulate cryptocurrencies and digital tokens. The new measure became effective after an amendment of the Revenue Code was announced on the Royal Gazette on Tuesday, said Kulaya Tantitemit, Finance Ministry spokeswoman said. She said the transactions involving cryptocurrencies were subject to 15 per cent capital gains tax, 7 per cent VAT and another 20 per cent corporate income tax. However the ministry planned to propose VAT exemption for all transactions made through authorized dealers for the Cabinet to approve, she added. The new tax measure was aimed at curbing the Thai initial coin offering (ICO), the Ministry says. Stock Exchange Commission Secretary-general Rapee Sucharitakul said the new taxes and legal requirements would protect local investors and prevent money-laundering. Some experts and representatives from the private sector have warned that the new tax measures are not favorable for the Thai digital economy and tech start-ups, as it could drive away Thai entrepreneurs and investors to other countries where there are no taxes on ICOs. (TNA)