Crypto taxes unfair, unpractical and don’t promote trade, says former SEC chief
Taxes on cryptocurrency trading should be fair, clear, practical and promote trade, the Security and Exchange Commission (SEC)’s former deputy secretary-general Tipsuda Thavaramara said on Sunday.
The Revenue Department’s decision to discuss taxes for cryptocurrency trading with relevant agencies was a good move, she added.
Tipsuda also pointed out the three issues related to taxing cryptocurrency trading that are questionable, namely:
• Capital gains tax: The Revenue Department's decision to collect capital gains tax is unfair and unpractical as digital asset exchange operators do not pay investment returns to customers. Withholding tax also affects transactions as stores that accept cryptocurrencies must collect capital gains tax from customers.
• Value-added tax (VAT): The Revenue Department considers cryptocurrency a product, so businesses and traders are required to pay VAT for selling cryptocurrency. Many other countries, like Australia, Singapore and some European nations, have waived this tax for the sale of cryptocurrencies.
• Tax on issuing tokens: The tax on the issuance of debentures should not apply to the issuing of investment tokens. The Revenue Department says all issuances are considered as income unless exemption is announced.
"Whether policies focus on the promotion of trade industry or not, the Revenue Department should collect taxes fairly under clear rules and practises," she said.