The Thai government announced that it would renounce VAT on virtual currency transactions. In terms of consumption tax in Japan, VAT reduces the tax burden on merchants who trade virtual currencies when they are exempt. On the other hand, taxes are imposed on the profits obtained by trade.
The Cabinet Office in Thailand presented two new bills in virtual currency to Congress in March this year. The first one refers to the imposition of virtual currency transactions, the second is the bill in the ICO.
Saroch Thongpracum, the domestic revenue agency, said local media will be exempt from VAT. In Thailand until the past, the virtual currency had 7% VAT and 15% tax on capital gains. The formation of a formal bill seems to be expected in July.
With respect to ICO, we will admit that it is legal under the supervision of regulatory authorities such as the Securities and Exchange Commission (SEC).
Rapee Sucharitakul of SEC said in the ICO market as follows.
"The regulation will protect investors and the ICO market will grow in a healthy way, investors who participate in ICO must be familiar with its contents."
Once the bill is established, businesses and others can carry out ICO operations and raise funds. Companies that store or market ICO cards must register with the Financial Services Agency.
Although it is before the bill is officially established, it can be seen that Thailand is trying to positively regulate the virtual currency.
Because the virtual currency is easy to cross across borders through the Internet, operators are likely to use more currency if they charge higher taxes. The funds will be filtered out of the country and it will be very difficult to capture the transaction. Regulators should understand the characteristics and technologies of the virtual currency and the rules of advance carefully.
good post.
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