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The Government of Thailand has announced plans to adopt distributed ledger technology to combat tax avoidance.
The general manager Ekniti Nititprapas said that the Department of Revenue intends to use the blockchain to verify if the taxes have been correctly paid and to speed up the process of tax reimbursement.
The Thai government announces the plan to use Blockchain technology to improve the tax collection system
The head of the revenue department of Thailand said that the use of disruptive technologies such as blockchain and machine learning to improve the tax collection system was his priority, the Bangkok Post reported.
While the blockchain will be used to verify taxes and speed up tax reimbursements, machine learning will be used in the fight against tax evasion by monitoring tax fraud and creating more transparency.
Thailand has shown an open approach to blockchain technology and cryptocurrencies over the years. From a fiscal point of view, the Government of Thailand levies a tax on capital gains of 15% on profits from the purchase and sale of digital tokens, according to new tax legislation. It's also a 7% value added tax, but according to Apisak Tantivorawong, the government's finance minister, most investors are exempt.
The Securities and Exchange Commission (SEC), the country's financial supervisory body, has announced a regulatory framework for initial coin offerings (ICOs) that will come into force on July 16, 2018. Issuers of digital tokens must be registered with the SEC of Thailand before selling digital assets.
Only investors with high equity, venture capital companies, private equity firms and other institutional investors can acquire unlimited units of digital assets in ICOs, according to the Thai regulator, which has jurisdiction over space, according to a recent Royal. Decree. Retail investors are limited to the purchase of tokens worth less than 300,000 baht ($ 9,050).
Following the new ICO rules, the SEC reported that about 50 potential initial coin offerings showed interest in securing a license to the regulator and 3 of them followed up. SEC Secretary-General Rapee Sucharitakul also said that about 20 companies were trying to officially operate as an exchange of digital resources. Bithumb, one of the world's largest cryptocurrency operators, has announced that it has obtained regulatory approval.
At the end of October 2018, the Thai SEC issued a warning to investors about what it describes as "disowned ICOs", which are heavily advertised in the region through multiple media despite not being registered with the SEC. The "renegade" coin offerings include every currency, Orientum coin (ORT coin), OneCoin coin and OFC coin, Tripxchain coin (TXC coin), TUC coin, ICO expert G2S, ICO Singhcom Enterprise, ICO hostel Bangkok, and ICO Kidstocurrency, second to the declaration.
The Securities and Exchange Commission requires ICO projects to apply for a license before a token sale.
"ICO acceptance criteria can include due diligence and screening of lenders by dishonest people.The source code of the smart contract will automatically be applied against the contract.After the sale, the SEC publishes a copy of the statement on the SEC website, "declared the regulator.
However, investors are not prohibited from investing in "renegade ICOs".
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