⚡️Summary of “Benefits of Shop & Refund Program” & Crypto Tax : What type of income is taxable? 🛍📉

🛍 Benefits of Shop & Refund Program

Shop & Refund Program 2022 is back!

People can start using the privilege from 1 January to 15 February 2022.

However, those who hold state welfare cards are not eligible to participate this program. What are the conditions for participating in the program? Let’s get into the details.

1. Must be goods and services from VAT-registered entrepreneurs. 

2. A full-versioned tax invoice is required, except for OTOP and E-Book products with proper receipt 

3. What products and services are prohibited? 

• Spirits, beer, wine and tobacco. 
• Gasoline 
• Transportation 
• Newspaper and magazine, both print and digital versions. 
• Travel service and hotel accommodation. 
• Non-life insurance premium. 
• Utilities such as electricity, water and telephone bills. 

Note: Those who have taxable income less than 150,000 bah per year or taxable income after deduction and allowance less than threshold will not enjoy the program.

🔥 Crypto Tax Summary: What type of income is taxable?

Crypto tax which was introduced in 2018 and is currently outdated contains three principles as follows. 

1. The share of profits or any benefits of a similar nature derived from holdings or possessing digital tokens subjects to tax. 

2. The benefit derived from the transfer of cryptocurrency or digital tokens is subject to tax. 

3. Any gains made from Cryptocurrency transactions are subject to a 15% withholding tax, at source as tax-paid credits against the Personal Income tax payable at year-end 

Not all aspects of crypto taxation are clear as the tax methods and calculations should be more concise, clear, and easy to understand. For a clearer picture, let’s take a look at the summary of the current state of the crypto tax as follows.

The Crypto Tax Law, which came into existence in 2018 and has not been amended to this day, contains three principles as follows.

🔑 Summary of key issues

1. Withholding tax 15% is not practical as many questions remain regarding how to calculate profits 

2. Which cost calculation method is suitable? Purchasing cost calculation method or mining cost calculation method. 

3. The criteria for the profit calculation has not yet clarified  

Nevertheless, the Revenue Department is overseeing on the guidelines for the crypto tax and expecting to have clear guidelines by the end of January 2022. We will keep you informed on further updates.