Updates on Crypto Taxation in Asia 2019
In 2019, numerous countries in Asia have issued laws and regulations on crypto taxation, as regulators are beginning to understand the importance of digital assets. A higher number of investors are also taking an interest in crypto-related projects.
China Defines Bitcoin as Virtual Property
According to Cointelegraph, a major move for Chinese regulators in 2019 was when a Chinese court legally recognized Bitcoin as virtual property in July.
Though China has yet to announce any specific rule for crypto taxation, many have speculated that this ruling may urge tax authorities in the nation to decide on a policy on crypto taxation in the near future.
Singapore Exempts Taxes for Cryptocurrencies
Meanwhile, the Inland Revenue Authority of Singapore (IRAS) has approved a draft e-tax guide, which suggested that cryptocurrencies that are intended to function as a medium of exchange are exempt from the nation’s Goods and Services Tax (GST) from January 2020 onwards.
Moreover, the IRAS also revealed that stablecoins will be exempt from GST, or the country’s value-added tax, as well.
Thailand to Implement Blockchain-Powered Tax Return System
In Thailand, the Excise Department has revealed that it will transform its tax return practices by launching a blockchain-enabled tax return system by mid-2020.
According to an official from the department, oil exporters will be able to pay excise tax and request tax returns after fuel has been delivered, with blockchain technology to assist the department with assessing tax payments with more efficiency.
Today, while oil exporters already have specific documents to submit in order to waive their taxes, the quality of inspection for each case could be improved.