- According to local reports, the Ministry of Finance announced on Tuesday that it would extend tax exemptions previously provided for virtual currency transactions.
- The move is part of broader efforts to boost Thailand's economy after last year's weak growth.
Thailand is exempting crypto traders from paying high taxes in a bid to strengthen the country's ambitions to become Asia's digital asset hub.
According to local news outlets, the Ministry of Finance will eliminate the need to pay a 7% value-added tax on profits from trading in virtual currencies and digital tokens.
According to the paper, Paopum Rojanasakul, secretary to the finance minister, said the exemption was aimed at encouraging digital assets as an alternative means of raising funds. bangkok post officereported on the exemption extension.
The exemption, which was previously scheduled to expire at the end of 2023, will now permanently apply to transactions carried out through licensed digital asset exchange operators in Thailand.
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Transactions conducted by licensed brokers and dealers are also exempt.
If VAT was previously applied to virtual currency transactions, it would be subject to tax every time someone bought or sold virtual currency, significantly increasing the cost of each transaction.
This exemption continues to apply to transfers of cryptocurrencies to others since the Order was first introduced in April 2022.
The Ministry of Foreign Affairs did not return. DL News” Request for comments.
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Thailand focuses on cryptocurrencies
The indefinite exemption from VAT is part of the country's plan to attract crypto investment and stimulate economic growth following a slump in merchandise exports and a tailwind to the tourism sector due to the coronavirus pandemic.
The company’s securities regulator already introduced more crypto-friendly rules in January.
Still, Thailand remains taking a cautious approach to the asset class, restricting the use of cryptocurrencies in payments due to concerns that they could have a negative impact on the country's financial health.
In 2018, the country established a licensing system for virtual currency exchanges and brokers under the Digital Asset Business Emergency Decree.
The measure aims to ensure the security and compliance of digital asset services, requiring platforms to meet strict operational standards that authorities believe will continue to protect the financial system and strengthen consumer protection. .
Sebastian Sinclair is DL News' markets correspondent. Any tips? Please contact Cebu: [email protected].
