Part #16

Photo Source: ICORA

We were honored to hear about related hot issues from Mr.Pinsai Suraswadi, Director of Tax Policy and Planning Division of the Revenue Department. Mr. Pinsai had also studied in our CryptoAsset Revolution Class and today he was invited to share some fruitful information related to both the recent announced law and some pending issues regarding taxes on Digital Assets. We will select some parts of his presentation to share with our audiences as shown below.

New Tax Law on Digital Assets:

  • The Amendment of the Revenue Code Decree

This change adds new types of Income and withholding tax obligations regarding Cryptocurrencies and Digital Tokens.

Under Section 40(4)(h): A share of profit or any benefit, such as interest dividend, derived from digital tokens is regarded as taxable income.

Under Section 40(4)(i): Capital gain from the transfer of Cryptocurrencies and Digital Token is regarded as taxable income

The individual who derives incomes as mentioned above will be subject to withholding tax at a rate of 15%. The individual will also be required to include such incomes in personal income tax return filing.

  • Digital Assets:

These are regarded as intangible assets, therefore the trading of Digital Assets would be subject to VAT.

  • Some points are under consideration:

In the near future, the Revenue Department will determine the withholding tax rate for corporate entities, which is likely to be at 15% and

to exempt VAT of the trading on Digital Assets by individuals through authorized exchanges.

  • There are 3 possible types of tax:

Income tax, VAT and Special Business Tax (SBT)

  • In general, tax may be applied on the return of the following:

#1 Equity: having return as “Dividend” resulting in Income Tax.
#2 Liability: having return as “Interest” resulting in Income tax and SBT.
#3 Trading: having return as “Revenue” resulting in Income tax and VAT.
#4.Services: having return as “Fee” resulting in Income tax, VAT and SBT.

Source:
1. CryptoAssets Revelution Class by ICORA
2. Additional source from Baker Mckenzie in loxology.com

This topic is regarded as a new set of circumstance in our country. Although many parties have different points of view, all parties seem to have the good will to develop their own related areas with hope for the best solutions for our country to be competitive with others in the region.

Photo Source: ICORA

Part #17

We heard a lot about mining and today we had opportunity to meet a real miner, Mr.Dome Chareonyos, Founder & Managing Director of Dome Cloud Co., Ltd.

  • Background:

Mr.Dome talked about the nature of his business, which focuses on providing infrastructure by becoming well known in promoting via social media against DDOS(F5), and focusing on large websites’ back-end management, e.g. the Standard, K@pook, ThailandPost and etc.

  • His experience in mining:

His mining business started from seeing the strong demand for mining when at the same time most people faced problems in server and power management. Thus, he saw this as an opportunity by offering the cloud services specializing in mining, namely Cryptocurrency Cloud Mining by DomeCloud

  • His 1st phase of the Cryptocurrency Cloud Mining

His cryptocurrency cloud mining drew positive attention from many miners, however he shared some pain in terms of margin when the crypto mining card price skyrocketed due to the speculative market.

  • Technical Terms

He mentioned many interesting technical terms, for example: docker and kubernetes. He is confident in using kubernetes for his mining as it has experience in running production workload at google. After class, I am still curious to find out more information online about this topic and would like to share that with you.

  • Kubernetes

Kubernetes is an open-source container-orchestration system for automating deployment, scaling and management of containerized applications. It was originally designed by Google and is now maintained by the Cloud Native Computing Foundation. It aims to provide a “platform for automating deployment, scaling, and operations of application containers across clusters of hosts.” It works with a range of container tools, including Docker.
Source: wikipedia

Photo Source: ICORA

Other than that he mentioned the different types of Blockchain consensus protocol

  • Blockchain consensus protocol

1. Proof of Work (POW)
Nakamoto applied the Proof of work concept to use in Bitcoin. Proof of work allows the trustless and distributed consensus (meaning not requiring third-party services for the transactions) Proof of Work requires mining (which serves 2 purposes: 1.verification 2.creating new currencies by rewarding the first miner who can solve each block problem). POW is an algorithm, which solves the computationally intensive puzzles to validate transactions and create new blocks. A lot of resources (mainly the electricity that powers the clients’ computers) is used only for providing trust in the currency.

2. Proof of Stakes(POS)
Proof of Stake is another type of algorithm, by which a cryptocurrency blockchain network also aims to achieve distributed consensus. In POS -based cryptocurrencies, the creator of the next block is chosen in a deterministic way, depending on its wealth, also defined as stake. There is no block reward in Proof of Stake but validation fee for validator (instead of miner).

3. Federated byzantine Agreement (FBA)
The Stellar blockchain adopted the FBA protocol by trying solve the problem through creating smaller groups of trusted “soldiers” or nodes that select other trusted nodes and try to reach consensus between their own trusted group. If everyone (every node) does this, and select a group of other trusted nodes you build a decentralized form of validation that leaves out the bad performers as not being included in the trust groups. The validations occur in a form of a cluster where the groups that need to verify the transactions are able to settle and validate the transactions in a faster fashion.

  • ASIC vs GPU

The mining process is done by computers. In order to do this, a miner uses either GPUs (Graphics Processing Units) or ASIC (application-specific integrated circuit) to solve a complex Proof of Work cryptographic algorithm in order to add the block to the Blockchain.

Source:
1. towards datascience.com
2. the independentrepublic.com
3. blockgeeks.com
4. trymining.com
5. cointelegraph.com

Photo Source: ICORA

During the night party we also had 2 speakers – Mr. Anthony Munoz Cifuentes, Founder & CEO of PRISM –talking about healthcare on blockchain (Prism Platform) and Mr. Todsaporn Benjerdkit, Tecd Lead, Six Network and Devnetwork, talking about how to invest /adopt ICO. Both sessions were interesting however we were the host of that night party which also required attention so there are no notes to share about them. Our LTC (Litecoin) team also arranged game/ song / street magic to entertain our friends before the end of that night.

Author: Waleeporn Sayasit, Corporate Communications Director, TCC Technology
Advisor: Dr. Karndee Leopairote, CEO, ICORA
Editor: John Bickel, Senior Consultant, TCC Technology
Source: ICORA ‘s class, CryptoAsset Revolution (CAR) #1