News and developments
Digital Asset Taxes for Cryptocurrency and Digital Tokens
In January, the department held a public hearing with representatives from the public and private sectors. To explore digital asset tax guidelines, representatives from the Bank of Thailand, the Securities and Exchange Commission (SEC), the Thai Digital Asset Association, the Fiscal Policy Office and investor groups met to arrive at a digital asset tax collection approach appropriate for the current situation.
The guidelines are under the Revenue Code Amendment Act (No. 19) B.E. 2561 (2018). The taxable transactions must be conducted through the digital asset exchange platform under the SEC only. These are as follows:
If you have any questions, please contact us at [email protected] or +66 02 117 9131. View the original article on the FRANK Legal & Tax website
- Assessable income tax (net profit/capital gain) can be calculated so that the loss is the offsetting of losses against gains within the same tax year. If losses arise from any cryptocurrencies/digital tokens incurred in the same tax year, these can be offset against the profits. However, only transactions involving digital assets that are regulated by the Office of the Stock Exchange of Thailand and the Stock Exchange of Thailand are permitted.
- Withholding tax: if the payee cannot be identified and is unaware of the amount of income to be withheld, there is no requirement to withhold tax.
- The value-added tax (VAT) shall be an exemption for the transactions conducted through business operators or exchanges regulated by the SEC and on digital assets issued by the BOT.
- The First In, First Out (FIFO) method assumes that cryptocurrencies or digital tokens purchased first are sold first.
- The moving average cost is the cost calculation for each type of cryptocurrency/ or digital tokens is determined by the average cost of the same type of cryptocurrencies/ or digital tokens at the beginning of the year as the cost of cryptocurrencies/ or digital tokens purchased during the year. This is calculated every time you buy cryptocurrencies/ or digital tokens.
If you have any questions, please contact us at [email protected] or +66 02 117 9131. View the original article on the FRANK Legal & Tax website