Thailand has passed a law that exempts trading on authorized crypto exchanges from the 7% tax. This was an effort to attract more investment and innovation in cryptocurrency, with many believing it will become a global hub for blockchain development in Southeast Asia
Thailand has recently announced that they will exempt 7% of their cryptocurrency tax for traders operating on authorized exchanges. The new law is expected to make crypto trading in Thailand much more attractive. Read more in detail here: cryptocurrency in thailand.
The updated tax policy is believed to free cryptocurrency dealers from the mandatory 7% VAT on registered crypto exchanges, while also giving tax breaks for cryptocurrency startup investors for almost ten years. Thailand’s finance ministry is said to have loosened crypto tax laws and restrictions in order to encourage investment in the digital asset market.
The changes to tax laws and regulations come only weeks after the government scrapped plans to impose a 15% tax on cryptocurrency earnings. According to Reuters, the new tax policy exempts crypto dealers from the 7% value-added tax (VAT) on regulated exchanges.
Traders would also be allowed to balance their annual losses against profits from their bitcoin investments under the new tax regime. This is a significant relief for traders, given that most governments now only seek to tax earnings without taking into account the losses sustained by traders as a consequence of crypto market volatility.
These new tax breaks will take effect in April 2022 and will remain until December 2023. Investors who invest in crypto businesses in the country for more than two years will be eligible for tax breaks of up to ten years under the new tax legislation.
The updated tax laws, according to finance minister Arkhom Termpittayapaisith, were developed to boost the nascent digital asset market in Southeast Asia’s second-largest economy. Thailand has developed to become one of Asia’s most popular crypto destinations, thanks to the government’s crypto-focused policies and capacity to respond to criticism from ecosystem stakeholders.
The new tax legislation and regulations may serve as a significant standard for other governments considering imposing some kind of crypto taxes. Following the Indian government’s confirmation of a 30% tax on crypto holdings without having to account for trader losses, Indian crypto traders have demanded something similar.
In Thailand, the government has announced that it will exempt 7% tax for traders operating on authorized exchanges. The move is seen as a way to encourage cryptocurrency trading in the country. Reference: crypto bill.
