Thailand has moved one step closer to enacting taxes on cryptocurrencies.
Investors trading cryptos in the country are expected to face a 7 percent value added tax (VAT) for all trades in addition to a 15 percent tax on capital gains, according to a report by Nikkei Asian Review on Friday.
The move marks the latest effort to regulate cryptocurrencies in Thailand following two royal decree drafts that were previously passed by the Cabinet of Thailand, the executive branch of the country’s government.
As reported before, one of the two decree drafts specifically eyed regulation on cryptocurrency taxation in an effort to prevent money laundering and tax avoidance.
After its initial passage, the draft was further reviewed by the Council of State, an advisory body reporting to Thailand’s prime minister on legislative matters, before final approval by the Cabinet again on Tuesday last week, according to a local Thailand media outlet, the Bangkok Post.
While retail investors may be eligible to waive the VAT if they are trading through a cryptocurrency exchange after the law goes into effect, they will still face the liability if they have no capital gains from crypto trading, according to the Post.
The report also said the draft law is now pending publication by the Royal Gazette, after which it will be formally enacted.
Separately, as reported before, Thailand’s Finance Ministry and the Securities Exchange Commission are also developing an organic law that would require cryptocurrency exchanges, brokers and dealers to register with relevant authorities, following a public consultation that called for rules to be implemented by the securities agency.
Thailand baht image via Shutterstock