Thailand Announces Tax Relief Measures For Trading Digital Assets

Thai Cabinet has approved the principle of tax relief measures for trading digital assets, revealed the country’s Minister of Finance. 

According to a press release, Thailand’s cabinet has eased tax regulations for investments in Bitcoin and other cryptocurrencies in order to fully develop the second-largest growing economy in Southeast Asia.

The press release explained that a 7% VAT is exempted for transfers of cryptocurrencies or digital tokens in cryptocurrency exchanges authorized by the Minister of Finance (Exchange) and digital currency transfers issued by the Bank of Thailand. It is also allowed to deduct losses from the sale of digital assets on the exchange from the profits from the sale of digital assets on the exchange.

The Finance Minister Arkhom Termpittayapaisith commented:

“This issue will allow Thai investors to trade digital assets on a reliable Thai exchange. Because it is under the supervision of the SEC and other related government agencies, it enables Thailand to have a future payment infrastructure ready for the digital economy.”

The tax exemptions provided through this initiative will be effective from April 2022 to December 2023, and will include the impending central bank digital currency (CBDC) that Thailand intends to offer, the minister said.

Direct and indirect investments in startups will also be eligible for tax breaks, as investors who invest for at least two years in a startup will be offered tax breaks for 10 years, until June 2032,

Termpittayapaisith elaborated:

 “Tax relief for digital asset trading is It will help investors in digital assets to be comfortable in performing their legal duties. and get fairer in paying more taxes Including helping investors to trade digital assets that occur on Thai exchanges to be reliable, safe, and give people a choice in using digital money in the future.”