Legal Measures for Collecting Cryptocurrencies Taxation in Thailand

Abstract

The study on the measure of personal income tax collection from cryptocurrencies is aimed at studying the taxation problems of cryptocurrencies by analyzing and comparing with foreign laws with using documentary research methods.

            The study has shown that Thailand has the promulgation acts in response with these phenomena is Emergency Decree on the Amendment of Revenue Code (19^th Edition) B.E 2561 which the Revenue Code relating to the Cryptocurrency has been amended accordingly. In accordance with the Article 40 (4) (ฌ), the aforementioned laws prescribe that any profits from trading of Cryptocurrency (assessed as the revenue with the higher value than the investment price) is assessable income. However, Cryptocurrency is not only related to the trade and sell activities but also mining, gratuitous acts, inheritance and succession, fragmentation and payment of debts caused by Cryptocurrency.  Even though prescribed by the law of other countries, the aforementioned activities including the calculation of costs and profits from the transferring are not specifically prescribed by the law of Thailand. This is considered as cause for the legal gap in tax collection of Cryptocurrency which lead to problems in real practices.  

            Since the content of the law of Thailand does not totally cover the Cryptocurrency transaction, there are suggestions for the amendment of law related to the tax collection of the Cryptocurrency which are effectively promulgated in other countries such as the addition of types of assessable income in accordance with the Article 40 of Revenue Code, as well as the addition of calculation principle for the cost of Cryptocurrency. Most of all, withhold taxpayers are expected to be obligated to use the designated form to report all of their transferring of Cryptocurrency to the concerned agencies. Those suggestions will allow the state to be able to clearly examine the taxation of Cryptocurrency

Keywords : [Taxation Law], [Tax Collecting Measure], [Cryptocurrency]