Thailand Drops 15% Tax On Crypto Gains

Due to public resistance, the authorities of the Kingdom of Thailand have abolished the tax on crypto income.

The Thai Ministry of Finance planned to introduce a 15% capital gains tax on private crypto investors as early as January 1, 2022. However, according to Financial Times, the initiative came into conflict with the Ministry of Tourism and was also criticized by the business community and industry stakeholders. As a result, the authorities abandoned the tax to attract the crypto community.

According to the former Deputy Secretary-General of Thailand’s Securities and Exchange Commission (SEC), Tipsuda Thavaramara, a 15% tax on capital gains from crypto income is “unfair and impractical.”

Her position was echoed by Thailand’s ruling party MP Watanya Wongopasi and other financial experts, who warned that a tax on cryptocurrencies could reduce market liquidity and prevent foreign investment from flowing into the country.

As a result, the Ministry of Finance withdrew to impose 15% on crypto income. The income from cryptocurrency activities and mining will now be collected in the form of income tax, which is typical for local entrepreneurs.

A similar controversial situation has developed in South Korea, where regulators and crypto investors have not reached a consensus on a bill to tax income from cryptocurrencies.

According to South Korean authorities, from January 1, 2022, a twenty percent tax will be imposed on income from cryptocurrencies for more than 2.5 million won (about $2,104), and from 2023 – on equity income from 50 million won (about $42,140) and above. According to South Korean regulators, tax incentives for income from cryptocurrencies are non-negotiable since they are not recognized as financial assets in the country.

On Tuesday India Finance Minister Nirmala Sitharaman proposed tax gains from the transfer of virtual assets at a flat rate of 30 percent in her Budget speech. She said:

“I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 percent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition,”