Rules for levy on crypto profits imminent

Rules for levy on crypto profits imminent

Clear criteria for calculating withholding taxes on profits from cryptocurrency and digital asset trading is expected to be issued this month, said Ekniti Nitithanprapas, director general of the Revenue Department.

Mr Ekniti said that Prime Minister Prayut Chan-o-cha has urged the department to brainstorm with all related parties to make the matter clearer for investors and the general public.

Profits earned from cryptocurrency trading, Bitcoin mining, and the dividends or interest gained from investment in cryptocurrencies, are all subject to a 15% withholding tax.

Mr Ekniti added that the department has discussed the matter with the Bank of Thailand, the Securities and Exchange Commission and the Stock Exchange of Thailand. It will hold a public hearing with related parties in the private sector to establish guidelines on such tax collection, based on the maximum public benefit.

He said that investment in digital assets has boomed, which is something new to the taxpayer and the department. He added that the department does not take this trend for granted but has kept a close watch on the phenomenon.

Mr Ekniti asserted that the department would give fair treatment to everyone involved, and wanted to promote economic growth based on innovation.

Last week the Revenue Department's spokeswoman Sommai Siriudomset said that the department was in talks with digital asset exchanges to enable the latter to collect withholding taxes on cryptocurrency profits. The move is intended to make trading more convenient.

Cryptocurrency buyers currently have a duty to collect the 15% withholding tax from the profit gained by sellers through every transaction.

The department has the authority to collect taxes from cryptocurrency trading because profits from such activities are considered assessable income under Section 40 of the royal decree amending Revenue Code No 19.

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