According to the Bangkok Post, in order to develop Thailand into a digital asset hub in the region, the government has expanded the scope of value-added tax exemption for cryptocurrency transactions.
Reportedly, the Thai Ministry of Finance has relaxed tax regulations, suspending the requirement to levy a 7% value-added tax (VAT) on profits from cryptocurrency transactions. The tax exemption period will take effect on January 1, 2024, with no end date.
The value-added tax exemption for digital asset transactions previously only applied to authorized digital asset exchanges, but now also includes brokers and traders regulated by the Thai Securities and Exchange Commission.
Thai authorities hope that this move will support the growth of Thailand’s digital asset industry and provide the necessary impetus for promoting the development of Thailand’s digital economy in the near future.
Secretary to the Minister of Finance Paopoom Rojanasakul stated that the Ministry of Finance aims to promote digital assets as a new fundraising alternative. However, Paopoom also mentioned that the government should consider the stability of the financial system while harnessing the potential of digital assets.
Related reports: “Japanese Cabinet Finalizes Outline of Tax Reform, Will Abolish Taxation on Unrealized Gains from Cryptocurrencies for Companies” and “South Korea Considering Abolishing Cryptocurrency Tax Under New Capital Gains Tax System.”