Former Deputy Secretary-General of the Thai Securities and Exchange Commission (SEC), Tipsuda Thavaramara has questioned the legitimacy of crypto taxes in the country.
The comments by the former SEC chief came amid a decision by the Thai Revenue Department to discuss taxes on cryptocurrency trading, according to the local newspaper The Nation.
Appreciating the decision of the Revenue Department to inform the concerned agencies, he said that despite the policies focusing on the promotion of commercial trading, the Revenue Department should collect taxes subject to clear rules and regulations.
He quickly pointed out the major flaws in the three types of cryptocurrency taxation being developed by the Thai Revenue Department and many other countries.
The former SEC chief said the capital gains tax was unfair and impossible because crypto exchange operators were not responsible for paying investment returns to customers. They discussed the need to tax capital gains on customers for crypto payment services and the complexities of such taxation in the retail payment sector.
From the Value Added Tax Regulation, there is a rush to focus on things other than cryptos like Singapore and Australia. The Revenue Department has been asked to follow a similar approach to promote crypto usage.
Speaking on the issue of taxation of tokens, Thavaramara said that:
That the issuance of bonds for the issuance of investment tokens is not taxable
The Thai government currently imposes a 15% tax on crypto trading and many former and current financial officials have come forward to share their concerns about it. Pakorn Peetathawatchai, head of the Thai Stock Exchange, said yesterday that the new tax proposal would adversely affect growth.
After years of recognizing crypto as a legal asset, a new confusion seems to be swirling around crypto taxes. Most countries that focus on taxing crypto profits have not established any basic framework, which makes it very difficult to determine the correct tax policies.
Apart from Thailand, South Korea is another country that has proposed a 20% tax on crypto profits, however, due to a lack of clarity, the restrictions have been postponed for a year.
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