The Imposition of Tax on Cryptocurrencies

Abstract

In Thailand, the growth of cryptocurrencies has been increasing annually.[1] Tax is one of the issues which are concerned by government. Thus taxpayers who acquire any gains derived from transferring cryptocurrencies shall have tax responsibilities due to the Emergency Decree amending the Revenue Code (No.19) B.E. 2561. However, there are still some problems which are obstacle for imposition of income tax on cryptocurrencies.[2] As Section 40 (4) (i) only focus on imposing tax from cryptocurrency transferring as investment, Moreover, the substance of this Decree is only briefly described. It lacks necessary information, the existent of peer-to-peer market which is a major problem for tax authorities to trace and investigate the transactions. Therefore, to collect revenue from cryptocurrency transactions effectively, Section 40 (4) (i) should be revised and Thai Revenue Department shall release a tax notice, or guidance to explain the detail of imposing cryptocurrencies

including find the measures to support trading cryptocurrency in tax system.  

[1] Bot.or.th. (2017). [online] Available at: https://www.bot.or.th/English/Financial

Institutions/Publications/FSR_Doc/FSR2017e.pdf [Accessed 5 Aug. 2018].

[2] Pungnatous International Lawyers - Kingdom of Thailand. (n.d.). Seven statements on crypto taxation in Thailand. [online] Available at:https://pugnatorius.com/

bitcoin-taxation/ [Accessed 5 Sep. 2018].