“The government believes that it is necessary to monitor digital currencies, but is aware that excessive tax regulation could be destructive for this market,” says The Nation, Thailand’s national portal
The Ministry of Finance of Thailand is going to apply two types of taxes in relation to ICOs.
The Revenue Code has been amended to address the issue of digital assets, including tokens used in the ICO process, so that all transactions are subject to the current 7 percent value added tax. In addition, the Department of Revenue will levy a 15 percent income tax on ICO proceeds. That is, the sum of all taxes will be 22 percent.
In addition, all parties involved in ICOs and digital asset exchanges must be registered with the financial authorities within six months after the new code comes into force. Exchange representatives will be tasked with collecting taxes on user income on behalf of the Department of Revenue.
Jmart, a officially registered cryptocurrency company in Thailand, recently became the first to issue digital tokens. This event is an incentive to accelerate the development of regulation of a new form of fundraising. Jmart stated that it will use the funds received to invest in a cryptocurrency lending platform and will comply with the new regulation adopted by the authorities.
Digital assets are a source of concern due to their high volatility, but the blockchain technology behind them undoubtedly has enormous potential and can help Thailand transform the economy and society itself through tokenization.
It is therefore imperative for the Thai government to establish proper policies regarding blockchain technology, which promises to improve many aspects society, business and government.
Excessive tax regulation of ICOs based on blockchain technology, even for the purpose of preventing potentially adverse consequences for inexperienced small investors or preventing money laundering and other illegal transactions, can harm the country in the long run.
According to http://www.nationmultimedia.com
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