Thailand Government Treatment of Bitcoin - The Real Story

[Bitcoinrealmthai]

I have posted a summary of Thai Government treatment of the first Bitcoin exchange in Thailand, written from the perspective of the legal services firm that helped Bitcoin Co. Ltd. launch its operations in Thailand: 

http://www.bitcoinrealmthai.com/thai-government-regulation-bitcoin-trading/

[seriouscoin]

Awsome, that means you can build an bitcoin ATM network in Thailand.

What about tax law? does Thai government treat btc transaction as barter transaction ?

[Bit_Happy]

On or about 25 December 2013, Bitcoin Co. Ltd, received by mail the first written comments of any kind to arise from the BoT, in the form of a letter dated 12 December 2013 – copies attached.   This letter was the long-delayed response to our June 2013 letter, and the meeting at the end of July 2013.   We and Bitcoin Co. Ltd. interpreted this BoT letter to imply that as long as the company avoided any involvement with foreign currency, and with actively facilitating overseas remittance of funds, the BoT was confirming that they had no jurisdiction or active interest in the activities of the company.   

During January 2014, Bitcoin Co. Ltd. reorganized its structure, replacing its Thai management with foreign management.   The company’s new foreign director received his work permit on 13 February 2014, and Bitcoin Co. Ltd, resumed operations as an on-line Bitcoin exchange the following week.

Bitcoin Co. Ltd. was the first (and is thus far the only) legally-compliant on-line Bitcoin exchange in Thailand.


Glad they are up and running, congrats.

[Bitcoinrealmthai]

Awsome, that means you can build an bitcoin ATM network in Thailand.

What about tax law? does Thai government treat btc transaction as barter transaction ?

Yes a Bitcoin ATM network would be legal here, as long as it only accepted (and dispensed) Thai baht currency.

Thai corporate tax is based on end-of-year profit, however derived.

Corporate tax WITHHOLDING mostly applies only to B-2-B services transactions, based on category of business.

The main ongoing (transactional) tax for most types of business here is Value Added Tax, or VAT - as 7% of gross selling price.  But - the Thai Revenue Department has agreed to treat Bicoin exchange activity as being "an activity similar to a bank" - and thus, instead of being subject to VAT, Bitcoin transactions are subject to Specific Business Tax - which is 3.3% of the marginal gross "profit" realized on the transfer.  This is an essential distinction, due to the low profit differential that can realistically be earned.

Cheers!
Bitcoinrealm Thailand

[seriouscoin]

Awsome, that means you can build an bitcoin ATM network in Thailand.

What about tax law? does Thai government treat btc transaction as barter transaction ?

Yes a Bitcoin ATM network would be legal here, as long as it only accepted (and dispensed) Thai baht currency.

Thai corporate tax is based on end-of-year profit, however derived.

Corporate tax WITHHOLDING for mostly applies only to B-2-B services transactions, based on category of business.

The main ongoing (transactional) tax for most types of business here is Value Added Tax, or VAT - as 7% of gross selling price)  But - the Thai Revenue Department has agreed to treat Bicoin exchange activity as being "an activity similar to a bank" - and thus, instead of being subject to VAT, Bitcoin transactions are subject to Specific Business Tax - which is 3.3% of the marginal gross "profit" realized on the transfer.  This is an essential distinction, due to the low profit differential that can realistically be earned.

Cheers!
Bitcoinrealm Thailand

If what you said is true. Thailand sounds like heaven for bitcoins. Are you guys working on launching ATM?

Exchange is great but ATM can let avg ppl to access bitcoin alot easier. You can buy ATM for $1000 from Spain now.

[Bitcoinrealmthai]

I'm sure that ATM's will be coming to Thailand. 

In what seems to me to be an unusual peculiarity, most ATMs in Thailand communicate using mobile phone technology - with a SIM card mounted in the console.

[counter]

I'm sure that ATM's will be coming to Thailand. 

In what seems to me to be an unusual peculiarity, most ATMs in Thailand communicate using mobile phone technology - with a SIM card mounted in the console.

Sounds like some exciting things may be brewing over in Thailand..  Always wanted to check out Bangkok now I may just have another reason, sweet.

[counter]

Within Thailand, the ONLY restrictions that have ever existed on the buying and selling of, or use of Bitcoins have been BoT restrictions on the two types of businesses that they have the authority and power to regulate:  banks, and foreign currency exchange businesses.

I think this is one of the things that I've forgotten about over the course of time but thanks for adding that to the discussion.

[mr smith]

I take it some much needed good news over in Thailand. i hope ATM's will pop up over there.
 

[burner2014]

Hey guys, any update on taxes the taxes? Only B2B?

ATM's coming?

[JypsiCreme]

I was just on vacation in Phuket, Thailand. There's so many street exchanges and Western Unions there. I see quite a market for Bitcoin.

[Este Nuno]

Just wait till the police catch someone buying drugs or gambling online using Bitcoin.

If that gets on the news it's over.

Of course no one can stop individuals from using Bitcoin. But if it ever gets associated with drugs or gambling in Thailand I would be scared to death if I was running a Bitcoin business based in Thailand.

[Daniel91]

Just wait till the police catch someone buying drugs or gambling online using Bitcoin.

If that gets on the news it's over.

Of course no one can stop individuals from using Bitcoin. But if it ever gets associated with drugs or gambling in Thailand I would be scared to death if I was running a Bitcoin business based in Thailand.

This is really possible and if such things happened Thailand Government can change their mind regarding Bitcoin.
Still, i hope that we will see real breakthrough regarding Bitcoin in Thailand.

[LiteCoinGuy]

good to have some professional sources in thailand, thx.