can we accept crypto currencies for new business in Thailand?

[davidst01]

Does anyone know the legal status regarding accepting crypto currencies as payment instead of fiat. Obviously most folk will pay in baht but I want to advertise 

on the signage that people can pay with cryptos. Is it legal yet?

 

thanks

[Ks45672]

It's never been illegal so I don't think you need to wait for legalisation 

 

As a seller You can accept payment in chickens or loafs of bread if you like 

[Lamkyong]

I would be interested to understand what you are trading  also   an idea of your customer base

Ie.    Food/goods  electricals  etc 

[davidst01]

4 hours ago, Lamkyong said:

I would be interested to understand what you are trading  also   an idea of your customer base

Ie.    Food/goods  electricals  etc 

health clinic

[davidst01]

8 hours ago, Ks45672 said:

It's never been illegal so I don't think you need to wait for legalisation 

 

As a seller You can accept payment in chickens or loafs of bread if you like 

Do you have any expertise in this area re your first sentence? Any evidence?

 

I'm hoping that more members can comment on this. 

[Monomial]

It is legal. It is currently considered the equivalent of accepting barter. So in order to be completely legal, you will need to report the transaction on your monthly tax statements, pay the 7% VAT, to the government and track the cryptocurrency as an asset of the company. When you ultimately dispose of the asset, there will be another VAT assessment, which you can offset against the first one, and you additionally have to pay tax on any profits.

 

If you want to buy and sell cryptocurrency as anything other than payment for goods or services in kind, you will need to apply for a crypto exchange license from the SEC. These rules are all very recent, having only been codified a few weeks ago, so there is very little knowledge about this by most accountants and lawyers.

 

Please note that what is not currently legal is informal person to person sales outside the context of a legitimate business transaction or through a licensed exchange. So if you are not a business doing the above type of reporting, then in theory you can not accept it, although I seriously doubt this will be enforced.

Edited July 1, 2018 by Monomial

[Ks45672]

1 hour ago, davidst01 said:

Do you have any expertise in this area re your first sentence? Any evidence?

 

I'm hoping that more members can comment on this. 

There is already a Thai dental clinic accepting it somewhere, I forgot which area 

[scorecard]

14 hours ago, davidst01 said:

health clinic

Clinic premises licensed for Thailand?

 

Doctors / appropriate health operators have qualifications and licensing approved / issued in Thailand and licensed to practice in Thailand?

 

 

Edited July 2, 2018 by scorecard

[scorecard]

11 hours ago, Monomial said:

It is legal. It is currently considered the equivalent of accepting barter. So in order to be completely legal, you will need to report the transaction on your monthly tax statements, pay the 7% VAT, to the government and track the cryptocurrency as an asset of the company. When you ultimately dispose of the asset, there will be another VAT assessment, which you can offset against the first one, and you additionally have to pay tax on any profits.

 

If you want to buy and sell cryptocurrency as anything other than payment for goods or services in kind, you will need to apply for a crypto exchange license from the SEC. These rules are all very recent, having only been codified a few weeks ago, so there is very little knowledge about this by most accountants and lawyers.

 

Please note that what is not currently legal is informal person to person sales outside the context of a legitimate business transaction or through a licensed exchange. So if you are not a business doing the above type of reporting, then in theory you can not accept it, although I seriously doubt this will be enforced.

 

Is your comment absolutely specific to Thailand or another country?

 

 

 

[CH1961]

Pattaya Beergarden accepting Bitcoin since years ..

Edited July 2, 2018 by CH1961
misspelled

[Monomial]

4 hours ago, scorecard said:

 

Is your comment absolutely specific to Thailand or another country?

 

 

 

 

This is only for Thailand and the government's recent moves to regulate cryptocurrencies based on my best understanding of the industry discussions by Thai exchanges who have worked with the SEC in determining these rules. I make no claim about any other country. The statement I wrote above is fairly well established. The issue of establishing a basis for profit withholding tax calculations on cryptocurrencies purchased offshore is still very much up in the air though, so expect significant disagreements from everyone if you ask questions about this requirement.

 

On a more practical note, I can say that essentially the only thing that will really get you in trouble in Thailand right now is a road show promoting the purchase of a cryptocoin. Stay away from that, and you will likely be fine.

 

Edited July 2, 2018 by Monomial

[davidst01]

On 7/1/2018 at 8:40 PM, Monomial said:

It is legal. It is currently considered the equivalent of accepting barter. So in order to be completely legal, you will need to report the transaction on your monthly tax statements, pay the 7% VAT, to the government and track the cryptocurrency as an asset of the company. When you ultimately dispose of the asset, there will be another VAT assessment, which you can offset against the first one, and you additionally have to pay tax on any profits.

 

If you want to buy and sell cryptocurrency as anything other than payment for goods or services in kind, you will need to apply for a crypto exchange license from the SEC. These rules are all very recent, having only been codified a few weeks ago, so there is very little knowledge about this by most accountants and lawyers.

 

Please note that what is not currently legal is informal person to person sales outside the context of a legitimate business transaction or through a licensed exchange. So if you are not a business doing the above type of reporting, then in theory you can not accept it, although I seriously doubt this will be enforced.

but what if we dont have a company structure. ie the business is in wifes name etc. 

[Monomial]

11 hours ago, davidst01 said:

but what if we dont have a company structure. ie the business is in wifes name etc. 

 

Individual sales are not specifically legal. Business sales as payment for goods or services in kind are, provided relevant tax laws are followed.  If you are maintaining meticulous records and treating a sole proprietorship as a separate entity for accounting purposes, then you could probably make a strong argument. If you are "mixing" the business and personal accounts, as many sole proprietors do, things can become murky.

 

As I said though, things are unlikely to be enforced unless you do a roadshow or other type of promotion in Thailand encouraging buying or using a specific cryptocurrency. Then you can expect to have the weight of the new law thrown at you. I wouldn't worry about it if investment is not your intent. Bitcoin accepted here would not create any waves. Buy our new "davidst01 coin" on the other hand, would likely get you into trouble. Use your best judgement. This is a brand new law, and there has been absolutely no guidance from the courts on how to interpret it.

 

 

 

 

[Berkshire]

12 hours ago, davidst01 said:

but what if we dont have a company structure. ie the business is in wifes name etc. 

I'm not sure why you'd want to open yourself up to scrutiny from the government.  Your business may be entirely legit, but those who use cryptocurrencies may not be.  Wasn't there some Russian dude recently who got nabbed by law enforcement for what amounted to crypto money laundering ?  And then there's the value fluctuation.  It just seems like an unnecessary risk. 

[Ks45672]

23 hours ago, davidst01 said:

but what if we dont have a company structure. ie the business is in wifes name etc. 

You owe nothing until or unless you trade the cryptos for cash

If you hold them for years (best strategy imo) you will have to the option to cash out in any country of the world and some will be more tax favourable than others

 

Don't listen to the naysayers who have a wealth of no idea, you will not be arrested for money laundering unless that's what you are doing

[JaiLai]

I think Steak & Co accept it as payment.

 

I know guys, incredible input to the thread......damn fine steak nonetheless...