March 28, 2022
By Sharan Kaur Phillora
Thailand’s cabinet on Tuesday relaxed tax rules for investments in digital assets to help promote and develop the industry following a surge in cryptocurrency trading in Southeast Asia’s second-largest economy, according to a report by Reuters.
Here’s what we know:
- Starting April 1, trades of digital assets on government-approved exchanges will be exempt from a 7% value-added tax (VAT), said the minister, Arkhom Termpittayapaisith, according to the meeting minutes posted in the official press release.
- Additionally, direct and indirect investments into startup companies will also receive tax breaks for ten years if two or more years are invested in the startup.
- The tax exemptions provided through this initiative will be effective from April 2022 to December 2023, and will include the trading in the impending central bank digital currency (CBDC) that Thailand intends to offer, the minister said.
- Termpittayapaisith explained that digital asset trading relief “will help investors in digital assets to be comfortable in performing their legal duties and get fairer in paying more taxes.” He continued to explain the benefits of this relief, including “helping investors trade digital assets that take place on Thai exchanges to be reliable, safe, and give people the option to use cryptocurrencies in the future.”
- Digital assets have grown fast in Thailand over the past year, with trading accounts surging to about 2 million at the end of 2021 from just 170,000 earlier that year, a ministry official said in January.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.