Tax relief has been approved for cryptocurrency trading by the Thai Cabinet. The new tax rules are “much more friendly to both investors and industry,” said an executive of a cryptocurrency exchange in Thailand.
Thailand adopts new tax rules for crypto investments
Thailand’s Cabinet approved new tax relief rules Tuesday for crypto trading, according to an announcement on the Thai government website.
Finance Minister Arkhom termpittayapaisith, and Deputy Minister Finance Santi Prompat shared the results of their meeting. They confirmed that the cabinet had approved crypto tax relief measures.
A conference heard from the minister of finance that annual losses will be offset by gains due to taxes on crypto investments. For transfers of digital tokens and cryptocurrencies, a value-added taxes (VAT), of 7% will be exempt.
The tax exemption that will be in effect from April 2022 through December 2023 will apply to the trading of digital currency of the central bank (CBDC), to be issued at the Bank of Thailand.
A manual was published by the Thai Revenue Department last month outlining new tax rules that apply to digital tokens and cryptocurrencies. The new tax rules are “much more friendly to both investors and industry,” said an executive of a cryptocurrency exchange in Thailand.
Thailand had previously proposed imposing a 15% withholding fee on crypto transactions. After industry opposition, the plan was abandoned.
Over the past year, cryptocurrency trading in Thailand has seen a significant increase. Officials from Thailand’s finance ministry stated in January that crypto trading accounts have increased to 2,000,000 in Thailand by the end 2021, compared with 170,000 last year.
The Stock Exchange of Thailand announced last month its plans to create a digital asset market.
Let us know your thoughts about Thailand’s relaxation of tax regulations for crypto investment. Comment below to let us know your thoughts.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.