Local digital exchange operators have requested a two-year tax exemption for cryptocurrency trading, claiming the industry needs more time to generate sustainable growth momentum.
The Securities and Exchange Commission (SEC) hosted an online meeting on Jan 20 to discuss the guidelines for digital asset taxation with the Revenue Department, the Bank of Thailand (BoT), the Thai Digital Asset Operators Trade Association and the Thai Digital Asset Association (TDAA).
The meeting, though primarily held to formulate guidelines for calculating cryptocurrency trading tax, also allowed the Revenue Department to collect more opinions from the SEC, investors and people involved in the digital asset industry.
The Revenue Department is collecting opinions from all parties, including digital asset traders and digital asset exchange operators, as well as other businesses related to digital assets such as members of the TDAA.
The guidelines for tax calculation need to comply with existing laws and are expected to be disclosed by the end of this month, said the SEC.
Suppakrit Boonsat, president of the TDAA, said both the TDAA and the Thai Fintech Association (TFA) agree tax collection should be postponed for a few years to give the industry a chance to post organic growth.
Mr Suppakrit also expressed concerns over the tax collection and calculation process. He said the process, if not designed well, may be unfair for certain parties because the total number of transaction entries for cryptocurrency in Thailand is tremendous.
Tracking and calculating tax from all cryptocurrency transactions will be very difficult in practice for the Revenue Department, said Mr Suppakrit.
Operators also believe it is unfair to them if the department taxes them for profits while not allowing them to deduct tax for losses, he said.
Kannithi Tongtanagoon, chief investment officer at Merkle Capital and director of the TDAA, said the Revenue Department must ensure tax collection is fair for all parties, including investors, entrepreneurs, government agencies and other taxpayers.