Tax regulations

Thai crypto tax regulations have become more lenient

Thai crypto tax regulations have become more lenient since the previous exposure. By using government-approved exchanges, crypto dealers can save 7% on their taxes. Long-term investors in start-ups will also benefit from tax advantages.

Tax exemption for cryptocurrency traders

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Thailand’s Ministry of Finance has reportedly eased tax restrictions on crypto to encourage investment in the digital asset industry.

The tax revisions come just weeks after the government shelved its original intentions to impose a 15% tax on cryptocurrency earnings. According to Reuters, the new tax policy exempts crypto traders from the 7% Value Added Tax (VAT) on regulated exchanges.

Traders could also balance their annual losses with the gains from their crypto investments under the new tax regime. This is a huge relief for traders, as most governments are only concerned with taxing gains right now, ignoring the losses suffered by traders due to the volatility of the crypto market. New tax breaks would be phased in over time.

According to Reuters, Thailand’s Ministry of Finance has decided to ease tax restrictions for crypto investors and traders. Thailand’s finance cabinet has announced that in response to an increase in crypto trading, it has decided to create measures to encourage investment in digital assets.

It comes after the department recently dropped the 15% tax rate in response to public outcry. When trading on government-authorized exchanges, crypto traders would be exempt from the 7% Value Added Tax (VAT), according to Finance Minister Arkhom Termpittayapaisith.

Crypto traders will now be able to deduct annual losses from gains when filing taxes on cryptocurrency assets, which includes trading their retail central bank digital currency. From April 2022 to December 2023, the new tax exemption will be in effect.

Thailand, the second largest economy in Southeast Asia, has about 10 times more active business accounts than the United States. According to data from the country’s Securities and Exchange Commission, trading volume increased by around 600% from November 2020 to April 2021. (SEC).

Investors are now subject to new laws

The ministry granted tax benefits for direct and indirect investments in start-ups, in addition to crypto traders. Investors who invest for at least two years in start-ups in the country will be eligible for a 10-year tax holiday that will last until June 2032.

This is a significant reversal from less than a year ago, when four different types of tokens and non-fungible tokens (NFTs) were banned. However, compared to non-existent or stifling regulations in other countries, it appears quite advanced and could serve as a model for others.

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