Editor's note: This article is reprinted from BitChinese.com (ID: bitecoin99), authored by Wolfie Zhao. 36氪 reprinted with permission.
Thailand is one step closer to taxing digital currencies.
In addition to a 15% tax on capital gains, Thailand is expected to face a 7% value-added tax (VAT) on all transactions ( VAT).
The move marks the latest move by the Thai government to regulate digital currencies after two draft royal decrees were passed by the Thai government’s executive branch cabinet.
As previously reported, one of the drafts of the two decrees specifically focuses on digital currency tax regulations to prevent money laundering and tax evasion.
The draft was further scrutinized by the Council of State before its initial approval by the cabinet, according to local Thai media, the Bangkok Post.
According to the Bangkok Post, retail investors may qualify for VAT exemption if they trade in digital currencies after the law takes effect, but they will still face debt if they do not receive capital gains from digital transactions.
The report also said the draft law is awaiting publication in the Royal Gazette before it will be formally enacted.
In addition, as previously reported, Thailand’s Ministry of Finance and the Securities and Exchange Commission are also working on an organic law that would require digital currency exchanges, brokers and dealers to register with the relevant authorities and require securities institutions to implement the rules after public consultation.