Thailand Readies for Digital Economy, Gives Tax Break For Crypto Transactions
In a push to prepare the Southeast Asian country for the future digital economy, authorities in Thailand have officially exempted value-added tax (VAT) for transfers of cryptocurrencies through government-approved exchanges.
In force until the end of 2023, the tax exemption will also apply to digital currency issued by the Bank of Thailand.
A decree published in the Royal Gazette on Tuesday retroactively enacts the tax break from April 1, 2022 and will be in effect until at least Dec. 31, 2023.
The royal document explains that the main goal of the tax relief is to promote the trade of cryptocurrency on authorized exchanges. All cryptocurrency transactions will be regulated and carried out under the supervision of relevant departments like the Securities and Exchange Commission (SEC).
Following the publication in the official journal, the measure which was pre-approved in March is now into force as part of Thai law.
Thailand’s Finance Minister Arkom Termpittayapaisit said the tax relief will help pave the way for the future:
This would encourage Thailand to have an infrastructure and payment system that would be ready for the future digital economy.
The Thai Director-General of the Revenue Department Ekniti Nititthanprapas noted that the easing of requirements will make it easier to purchase and sell digital assets in the country. As a result, Thailand would earn a “good image” in the global digital economy while investors can enjoy reasonable taxaction and secure transactions.
Another royal decree, announced on the same day, extends the VAT exemption to transactions using Thailand’s central bank digital currency (CBDC), which the Bank of Thailand plans to test in late 2022.
Earlier this year, following heavy backlash, Thailand’s government canceled its 15% withholding tax plans on crypto transactions.
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Source: igaming
