Open digital asset tax guide

Have income from "buying, selling, transferring, mining" must pay

Thai Rath Edition

7 Feb 2022 6:45 a.m.

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“Cryptocurrency tax

Digital tokens” continue to be a hot topic.

and investors are paying close attention

because in the past

The number of investors in the cryptocurrency market has grown exponentially.

Within 1-2 years, the average daily trading value of cryptocurrencies increased from 240 million baht to 4,839 million baht, the value of customer assets increased from 9.6 billion baht, increased to 114,539 million baht, and The number of user accounts increased from 170,000 accounts, surge to 1.97 million accounts.

While the approach to collecting taxes from cryptocurrencies

Although it has been in operation for a while

but still confusing

Criticism

and controversy

make all month

Last January, the Revenue Department had to find a solution by opening a forum to hear opinions from all parties involved.

The Bank of Thailand (BOT), Securities and Exchange Commission (SEC), Thai Digital Asset Association, Thai Digital Asset Business Trade Association.

Thailand FinTech Association Academics Cryptocurrency Investors

and related agencies

In the end, the Revenue Department agreed to relax.

and issued an announcement of guidelines under the Revenue Code Amendment Act (No. 19) B.E. 2561 (2018) to be more clear

The taxable transactions must be done through the digital asset exchange platform which is under the supervision of

SEC only

Including: 1. Calculation of assessable income tax (profit) can bring the loss to offset with the profit in the same tax year 2. Withholding tax if the payee cannot be identified

and do not know the amount of income that must be deducted is considered incomplete

Therefore, there is no need to withhold tax. 3. Value-added tax (VAT) is exempt for transactions made through business operators or exchanges that are regulated by the SEC and digital assets issued by Bank of Thailand

In addition, the Revenue Department has also prepared a personal income tax advice guide.

Cryptocurrency digital tokens as an introductory guide for filing a 2021 Income Tax Return PND 90 and a sample tax calculation example.

However, the income from cryptocurrencies

It is only part of the year's income that must be filed for tax purposes, so when income is taxed.

because of tax

It is the duty of every Thai person.

“Economic Team” would like to summarize the Cryptocurrency Tax Guide that the IRS has issued a total of 32 pages as a preliminary guide to

File a Tax Return for Cryptocurrency Incomers, Digital Tokens

Introduce the taxpayers

in the Crypto Tax Guide

The Revenue Department has defined income earners from cryptocurrencies and digital tokens that are required to file personal income tax returns for the year 2021 into five groups:

Group 1 Income derived from selling, distributing, transferring or exchanging cryptocurrencies digital tokens by 2 calculation methods: the first-in first-out (FIFO) method. Calculate Cryptocurrency Costs

Digital tokens are then calculated based on the purchase cost before being sold, respectively.

As a result, the remaining items as of the last day are cryptocurrencies.

Last purchased digital token

and the moving average cost method by calculating the cost of cryptocurrencies.

Each type of digital token is determined by averaging its cost at the beginning of the year and the cost of purchase during the year calculated each time it is purchased.

Income earners can choose any costing method when they choose a costing method and must use it throughout the tax year.

Costs shall include purchase costs and expenses such as fees and transfer fees, etc.

While measuring the value of cryptocurrencies, digital tokens, both costing and earning, use the value at the time of acquisition or the average price on the date of acquisition.

Which is a reliable reference price, such as the price announced by the digital asset exchange (Exchange) prepared according to the rules of the SEC, etc., and in the event of a loss, whether caused by crypto Currency

Any type of digital token generated in the same year can be offset against the profit.

Group 2. Income derived from mining cryptocurrencies, once the cryptocurrencies have been mined and have not yet been sold, will not be considered as assessable income.

But when the mined coins are sold, paid, transferred or traded,

considered as assessable income under Section 40 (8) of the Revenue Code.

which can deduct expenses incurred as necessary and reasonable

choose cost calculation

First-in, first-out (FIFO) method or moving average cost method.

Measuring the value of cryptocurrencies

Both cost and revenue calculations use the value at the time of acquisition, or the average price on the date of acquisition, which is a reliable reference price, such as the price announced by the SEC regulated exchange. . etc.

Group 3: Receiving cryptocurrencies as salary or wages Employees are paid a salary in cryptocurrencies as income 40 (1), the contractor is paid in cryptocurrencies as income 40 (2) if Received from the same employer for both salary and wages to be included as type 40 (1) income and to measure the cryptocurrency cost and income, use the value at the time of acquisition, or The average price on the acquisition date, which is a reliable reference price, such as the price quoted by the exchange that is established in accordance with the SEC rules.

Group 4: Receiving cryptocurrency, digital tokens through giving or receiving as a reward.

It is considered income under Section 40 (8) of the Revenue Code, for example, given away when participating in activities.

or received as a promotional reward, etc. The measure of the value of cryptocurrencies, digital tokens, both for calculating costs and revenues, is based on the value at the time of acquisition or the average price on the date of acquisition.

This is a reliable reference price, such as a price published by an exchange that is established in accordance with the SEC rules.

Group 5 receives benefits or returns from holdings

Cryptocurrency, digital tokens, for example, Yield farming or Staking, etc. by the benefit or return on holding.

“Cryptocurrency” is considered income under Article 40 (8), profit sharing.

or any other benefits of the same nature

Acquired by holding or possessing a “digital token” is income under Section 40 (4) (h) valuation, both cost and revenue calculations are based on the value at the time of acquisition or the average price.

on the day of the arrival

This is a reliable reference price, such as a price published by an exchange that is established in accordance with the SEC rules.

Income criteria must be filed with a tax return.

Every year, all Thai people, when their income reaches the criteria set by the Revenue Department

Must submit income statements and pay personal income tax to the Revenue Department.

according to income criteria

and before filing a tax return

In addition, must check the items that can be used for deduction.

There are many items such as interest on housing loans.

Parental support expenses

Health insurance premiums, life insurance, purchase of investment units in mutual funds, etc.

For income criteria that must be filed with personal income tax returns for the year 2021, the tax rate is calculated in a ladder as follows: Income of 1-150,000 baht will be exempt from tax, income 150,001-300,000 baht, tax rate 5%, the highest tax payable. 7,500 baht, income 300,001-500,000 baht, tax rate 10%, the maximum tax payable is 20,000 baht.

Income 500,001-750,000 baht, tax rate 15%, maximum tax payable 37,500 baht, income 750,001-1,000,000 baht, 20% tax rate, maximum tax payable 50,000 baht, income 1,000,001-2,000,000 baht, 25% tax rate, highest tax 250,000 baht, income 2,000,001-5,000,000 baht, tax rate 30%, maximum tax payable 600,000 baht, and income 5 million baht or more, tax rate 35%.

by filing a personal income tax return

If submitting documents in paper

Must be filed by March 31 of every year, but if filing a tax return online

Can submit until 8 April of every year.

Having income that is not taxed is subject to severe penalties.

“If a person profits from trading cryptocurrencies, then

but did not file the form or did not specify it in the tax form

When the Revenue Department

check income

If the earner

not filed a return or filed but it is false

Those who have income will be punished.”

In the case of non-payment of tax within the specified period

will have to pay an additional tax of 1.5% per month of the tax payable from

The expiration date of the filing deadline until the tax payment date

In the event that the inspection officer issues a summons

and it appears that the registration form has not been filed

or filed a return but failed to pay tax in full

In addition to being liable for additional payments

will also be liable for a fine of 1 time or 2 times the tax that must be paid, as the case may be

In the case of not submitting the Por Ngor Dor 90, 91 or 94 return within the time limit

shall be liable to a criminal fine of not more than 2,000 baht in case of intentionally giving false statements

or show false or fraudulent evidence

to avoid or try to avoid taxation

Punishable by imprisonment ranging from 3 months to 7 years and fined from 2,000 baht to 200,000 baht in case of intentionally neglecting to file a return in order to avoid paying tax.

Punishable with a fine of not more than 200,000 baht, or imprisonment for not more than 1 year, or both.

The Revenue Department continues to amend the law.

Mr. Ekniti Nitithanpraphas

Director-General of the Revenue Department said that the tax collection of cryptocurrencies

not new

because the tax has been collected according to the law since 2018 from the original tax return filer

Fill out the tax filing form.

in other income channels

In 2021, the Revenue Department has revised the form to be clear as well.

Attribution of Cryptocurrency and Digital Token Revenue

because when I have money

must be used to calculate income tax

to file a tax return

And if the sale is made and the income is more than 1.8 million baht per year, you have to pay value added tax (VAT), which is already in accordance with the law.

It must be admitted that cryptocurrency trading is growing at a very fast pace.

at the beginning of last year

At 170,000 accounts, nearly 2 million are currently trading. While the law was made in 2018, the situation today was very different from what it is today.

At that time, there was no Exchange in the past, who was trading in person.

But nowadays, I don't know. Traders don't know each other. Therefore, assigning the buyer to be the one who pays 15% of the seller's profit.

But now I don't know who sells it. I can't withhold.

The Revenue Department therefore has to exempt the withholding tax first.

For that reason, Exchange is under

SEC only

Because there are rules, when in Exchange, it should be beneficial.

because various information

The SEC can coordinate as a regulator.

which in foreign countries

Digital assets are available in both offsetting and non-offset modes.

While Thailand chooses an approach under the current law to offset only exchanges that are regulated by

The SEC is based on international principles, so it is not generalized.

“The Revenue Department will discuss with the digital asset community.

and related agencies

to study the feasibility of future policy

To amend necessary and appropriate laws, such as amending the Revenue Code Section 50 relating to withholding taxes through a business operator or Exchange as a deduction and submitting to the Revenue Department

Changing the type of VAT collection to “special business tax” of digital assets that are securities, etc.

The proceedings of the Revenue Department will take into account the appropriateness and various contexts.

surrounding continuously according to events and situations related to digital assets

That is changing very quickly”.

economic team

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