A 7% VAT exemption will benefit investors moving cryptocurrencies and digital tokens through exchanges in Thailand.
The Royal Gazette has released a decree on Tuesday enforced the tax break retroactively from April 1, 2022. According to the local media reported, it will be in place until Dec. 31, 2023.
With approval by the government in March, the measure concerns trading platforms registered with the Ministry of Finance.
According to the document, the tax relief’s main purpose is to promote cryptocurrency trade on authorized exchanges. This will allow crypto transactions to be regulated and carried out under the supervision of relevant departments like the Securities and Exchange Commission (SEC).
Thailand’s Finance Minister Arkom Termpittayapaisit believes that the relaxed tax rules will make cryptocurrency exchange in the country more reliable and stable. He was also quoted as stated:
This would encourage Thailand to have an infrastructure and payment system that would be ready for the future digital economy.
Director-General of the Revenue Department Ekniti Nititthanprapas added that crypto trading would be more convenient for investors who will enjoy fair tax treatment and safe transactions as Thailand improves its image in the global digital space.
A second royal decree published on May 24, extends the VAT exemption to transfers with a retail central bank digital currency (CBDC) issued by Thailand’s monetary authority. In December, the Bank of Thailand announced its plans to use an alternative means of payment by testing the CBDC in late 2022 in transactions between financial institutions and users.
Over the past few years, crypto investment and trading have grown rapidly in Thailand. In late March, citing the need to prevent various financial and economic threats, the country’s financial regulators announced rules to curb the use of cryptocurrencies for payments, with the SEC rolling out guides designed to stop digital asset operators from offering related services.
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