According to the Bangkok Post, in order to develop Thailand as a regional digital asset hub, the Thai government has expanded the scope of value-added tax (VAT) exemptions for cryptocurrency transactions.
Reportedly, the Thai Ministry of Finance has relaxed tax regulations by suspending the 7% VAT requirement on cryptocurrency trading profits. The tax exemption period will take effect on January 1, 2024, with no end date specified.
Previously, the VAT exemption for digital asset transactions only applied to authorized digital asset exchanges. Now, it 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 necessary support for the future development of Thailand’s digital economy.
Paopoom Rojanasakul, Secretary of the Ministry of Finance, stated that the ministry aims to promote digital assets as a new fundraising alternative. However, Paopoom also noted that the government should consider the stability of the financial system while harnessing the potential of digital assets.
Related reports: “Japanese Cabinet Finalizes Tax Reform Outline, Will Abolish Taxation on Unrealized Gains from Cryptocurrencies for Companies” and “South Korea Considers Abolishing Cryptocurrency Tax under New Capital Gains Tax System.”
