Former Thai SEC chief lays out three critical issues with crypto taxations

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Former Deputy Secretary-General of the Security and Exchange Commission of Thailand (SEC), Tipsuda Thavaramara, has come out to question the legitimacy of cryptocurrency taxation in the country.

According to a report from a local newspaper The Nation, the comments of the former SEC chief come amid a decision by the Thai Department of Revenue to discuss taxes for cryptocurrency trading.

Praising the decision of the Revenue Department to inform relevant agencies, Thavaramara said, “Whether policies focus on the promotion of business industry or not, the Revenue Department should collect taxes fairly according to clear rules and practices.”

Thavaramara has shown major flaws with three forms of crypto taxation that the revenue department of Thailand and many other nations have developed.

The former SEC chief called the capital gains tax unfair and impractical because crypto exchange operators are not allowed to pay investment returns to customers. She went on to discuss the complications that this form of taxation would bring in the retail payment sector, given crypto payment services should charge capital gains from customers.

Thavaramara drew attention to similarities between Singapore and Australia, which exempted cryptocurrencies from additional tax regulations. She called on the revenue department to follow suit to promote crypto usage.

Related: Central bank tells Thai banks not to offer crypto business

Speaking on token issuance tax, Thavaramara said that bond issuance tax should not apply to the issuance of investment tokens.

The Thai government is currently considering a 15% tax on crypto commerce, and many former and current financial executives have come out to share their concerns about it. Yesterday, the Thai stockbroker Pakorn Peetathawatchai said the new tax proposal would undermine growth.

After years of going back and forth over the acceptance of crypto as a legitimate asset, the new dilemma seems to be around crypto taxation. Most of the countries focused on taxing cryptocurrencies have no basic framework in place, which makes it quite difficult to determine appropriate tax policies. In addition to Thailand, South Korea is another nation that has proposed a 20% tax on crypto gains, however, the regulations have been postponed from another year due to lack of clarity.