The authorities of the Kingdom of Thailand, due to public resistance and part of the cabinet of ministers, have abolished the tax on income from cryptocurrency transactions in the amount of 15%.
The Thai Ministry of Finance planned to introduce a capital gains tax on private crypto investors as early as January 1, 2022. However, according to a Bangkok Post source, the initiative came into conflict with the position of the Ministry of Tourism, and was also criticized by the business community. As a result, the authorities changed course to attract owners of cryptoassets to the country.
According to the former Deputy Secretary General of the Securities and Exchange Commission (SEC) of Thailand, Tipsuda Thavaramara, a 15% tax on capital gains from income from cryptocurrencies 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 decision of the Ministry of Finance was canceled, and the income to the treasury from operations with cryptocurrency and mining will now be collected in the form of income tax that is customary for local entrepreneurs.
A similar contentious 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 the order of the South Korean authorities, from January 1, 2022, a twenty percent tax will be imposed on income from cryptocurrencies in the amount of 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, the provision of tax incentives for income from cryptocurrencies is non-negotiable, since they are not recognized as financial assets in the country.
Source: Bits
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