Tipsuda Thavaramara, former deputy secretary-general of the Security and Exchange Commission (SEC), has raised concerns about the legitimacy of crypto taxation in Thailand. She highlighted three critical issues surrounding the capital gains tax, value-added tax, and tax on issuing tokens.
The executive pointed out that the revenue department’s decision to collect capital gains tax was unfair and not practical. Thavaramara said digital asset exchange operators do not pay investment returns to customers. She believes withholding tax affects transactions. This is because stores that accept cryptocurrencies must collect capital gains tax from customers.
In regards to value-added tax, Thavaramarama said the revenue department considers digital currency as a product. As such, businesses and traders have to pay VAT for selling cryptocurrency. She highlighted that countries like Australia and Singapore have waived this tax. The former SEC chief said tax on the issuance of debentures should be applied to the issuing of investment tokens. Thailand’s revenue department considers token issuance as income unless there has been an exemption. Thavaramara stressed that the revenue department should collect taxes fairly under clear and transparent rules and practices.
The Thailand government is contemplating imposing a 15% tax on crypto trading. But a number of financial executives, like Thavaramarama, have voiced their concerns. Pakorn Peetathawatchai, head of the Thai Stock exchange, believes the new tax legislation would undermine growth. Akalarp Yimwilai, the co-founder and CEO of Zipmex Thailand, says many questions remain unanswered. They want clarification about how the profits would be calculated especially if the US dollar strengthens. Akalarp wants concise, clear, and easy-to-understand laws.
In 2021, Thailand recorded significant growth and value in the crypto market size