Thai SEC Tech Consultant Joins Crypt Community in Urging Government to Reconsider ICO Tax
An employee of Thailand’s Securities and Exchange Commission (SEC) has joined members of the crypto community in calling for the Thai government to reconsider a recently passed cryptocurrency tax framework for initial coin offerings (ICOs).
The Bangkok Post reported that Thai SEC and Thai Fintech Association technology consultant, Bhume Bhumiratana, added his voice to those of crypto community members in urging the Thai government to consider dropping valued added tax (VAT) and capital gains tax on ICO transactions in order to ensure that ICO projects don’t go abroad to raise capital.
According to the article, investors who take part in ICOs must pay 7% VAT on top of a 15% withholding tax on capital gains and returns from investments once the new law comes into force.
In comments to the Bangkok Post, Bhumiratana said that he hopes that the Finance Ministry and the Revenue Department “will consider issuing another law to delay the implementation of digital asset tax."
Thai crypto industry players agree that the current tax framework on ICOs, which was passed in March by two royal decrees, would push Thai ICO projects to raise money outside of Thailand. They argue that projects will take advantage of much more beneficial tax structures in crypto-friendly countries and fundraise elsewhere, depriving Thailand of useful capital that could help grow its economy and develop local businesses.
Bhumiratana also said that the Thai government is considering another royal decree that may further influence the situation for ICO projects. The new royal decree will require most ICOs to seek licenses from the Thai SEC, which will “likely supervise all types of ICO offering and require issuers to disclose business models and future operations.”