Over the past couple of days, a number of countries have embarked on new efforts to have virtual currencies taxed. One of the countries that have made great strides in this regard is Thailand.
7% VAT for Bitcoin Investors
According to the latest directive that was offered by the authorities in Thailand, Bitcoin investors would be required to part with a 7% VAT – Value Added Tax, for all their undertakings. Apart from that, there would also be an extra 15% that would be charged on the capital gains. The report was done on Friday, the 30th March 2018 by the Nikkei Asian Review. This latest move has officially launched the initial efforts to have the virtual currencies regulated in this Asian nation. It can be remembered that the cabinet of Thailand had earlier passed a decree that was drafted by two royal heads of the country. The cabinet is the senior-most executive branch of the government of Thailand.
Details of the Decree Draft
As earlier reported, the two decree drafts had different agendas. One of them was particularly directed towards the regulation of the virtual coin taxation. This was done as a way of curbing away tax avoidance and money laundering that has been real menaces in this industry.
Having been finally passed, the Council of State for Thailand then reviewed the draft. The Council of State is an advisory body that reports to Thailand’s Prime Minister on matters that regards to the legislature. The final appeal was done on 27th March 2018 by the cabinet. This was according to a report that was done by the Bangkok Post, an established media outlet in Thailand.
Even though the Bitcoin retail investors would have the powers to waive the tax if they are carrying out their business through a virtual exchange platform. This will, however, take effect once the decree is put into use.
In the meantime, the traders would still have to face the liability if they do not have any capital gains from their undertakings of the virtual currency business. This was also covered on the Bangkok Post.
Up to the time this article was written, the draft law had not yet been published. According to the report, the law is currently waiting publication that would be done by the Royal Gazette. It is after that the draft would be officially enacted.
Bitcoin Traders to Register
In other news, the Ministry of Finance in Thailand, and the SEC – The Securities Exchange Commission are currently working on a decree that would need brokers, dealers, and traders of Bitcoin to register their activities. As of now, all the market participants would have to wait for what would happen next.
With the increase of prices that was witnessed by the leading virtual coins in December 2017, a lot of countries sought to have the coin regulated. This was commonly witnessed in the Asian countries where the digital currencies recorded a huge adoption.