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Thailand Scraps Crypto Tax After Public Backlash

After a public outcry, Thailand Government rolled back the tax on crypto.

Thailand has suspended the plan to enact a 15% withholding tax on crypto transactions after a public outcry.

Thailand’s New Crypto Tax

According to a Financial Times report, tax officials explained on Monday that those who earn money from crypto trading or mining could pay the capital gains tax.

The new rules also allow traders to offset their annual losses against gains made in the same assessment year.

Industry stakeholders had warned the Government that stringent and excessive taxation could kill the industry.

Regulators have been wary of crypto because of their bad experiences in the past. Thailand suffered a crippling currency and financial crisis linked to “hot money” flows in 1997-98.

Just last week Thailand had announced its plan to regulate crypto.

New Crypto Tax Regime in India

On the other hand, on Tuesday, the Indian Government proclaimed its plan to impose a 30% tax on income from crypto. Any income from the transfer of any Virtual Digital Asset shall be taxed at a rate of 30%. 

Similar to the just suspended Thai laws, the proposed tax regulations of India state that no deduction in respect of any expenditure shall be allowed while computing the income, except the cost of acquisition.

Crypto taxation is becoming a contentious issue in different countries. 

Digital Assets cannot be taxed the same way as traditional assets. A different regulatory framework will be needed. Moreover, as crypto assets are transnational in nature, they can move freely from one country to another. Without international taxation standards, it would be difficult for respective local regulators to tax crypto.

News recommendation: Bitcoin First and Separate from Other Digital Assets: Fidelity

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