Thailand implemented a 15% crypto tax a while back. But after receiving a lot of backlash from the community, they have finally reevaluated this decision. Thailand’s new crypto tax policies are now very friendly as it removes the 15% withholding crypto tax. The authorities took this decision after they talked with crypto operators and finally took a decision that is great for the industry.
Thailand’s new crypto tax policies
Initially, the Tax was 15% for crypto and was withholding, which means it was directly sent to the government. This was obviously not favored by the investors. So, now the government has introduced a new manual way of paying crypto taxes in Thailand. Investors can report their gains on crypto investments as capital gains tax. At the same time, they can also offset the losses and gains made in the same year.
The CEO of the crypto exchange Upbit also praised the government for doing their research and taking a most favorable step to the community. This is surely going to make Thailand a pro-crypto nation and make crypto enthusiasts want to invest in crypto.
Indian crypto community suffers
Since we are on the subject of Tax, it is essential to see what other countries are doing. India has announced a 30% tax on crypto gains in the recent budget session. There will also be a 1% TDS on transactions. Any gift or transactions will also be taxed similarly. The worst part of all this is that losses cannot be offset against the gains, which makes it really unfair for traders. From one angle, this is a positive step as the chances of the ban are gone, but it is definitely not investor-friendly.
Let’s say you are a crypto trader, and on a particular day, you make 5 trades where you make Rs 10,000 in profits in 3 trades and face a total loss of Rs 5,000 in the other two. So, while your actual profit is Rs 5,000 and the tax should have been (30% of Rs 5000 = Rs 1,500) you actually end up paying (30% of Rs 10,000 = Rs 3,000). Now, you are left with only Rs 2,000 as the real profit. So, you keep your losses, but the government takes your profit. In this example, it is clear that you keep even fewer profits than the Tax, which isn’t right.
What are your thoughts on Thailand’s new crypto tax policies? And do you think that India should follow a similar or at least a little friendlier approach? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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