Thai authorities have officially introduced a value-added tax (VAT) exemption for the transfer of cryptocurrencies through government-authorized exchanges. The tax break, which will remain in effect until the end of next year, will also apply to digital currencies issued by the Bank of Thailand.
By Royal Decree, the VAT exemption for crypto transactions in Thailand comes into effect
Investors moving cryptocurrencies and digital tokens through Thai exchanges will benefit from a 7% VAT exemption on such transactions. Published in the Royal Gazette on Tuesday,Decreeenacted the tax cut retroactively starting April 1, 2022, and will run through December 31, 2023, local media reported.
The measure was approved by the government in March and concerns trading platforms registered with the Ministry of Finance. The decision is now part of Thai law, as it takes effect the day after it is published in the Official Gazette.
According to the document, the main purpose of the tax reduction is to facilitate cryptocurrency trading on licensed exchanges and to allow crypto transactions to be regulated and executed under the supervision of relevant departments such as the Securities and Exchange Commission (SEC).
Thai Finance Minister Arkom Termpittayapaisit is confident that the relaxed tax rules will make cryptocurrency exchange in the country more reliable and stable. He is also quoted as saying.
This will encourage Thailand to have an infrastructure and payment system that is ready for the digital economy of the future.
Director General of the Revenue Department Ekniti Nitithanprapas said that while Thailand will improve its image in the global digital space, crypto transactions will be more convenient for investors who enjoy fair tax treatment and secure transactions He added.
Another Royal Decreewas also issued on May 24. was also announced on May 24, extending VAT exemption to remittances using retail Central Bank Digital Currency (CBDC) issued by the Monetary Authority of Thailand In December, the Bank of Thailand announced that it plans to begin testing CBDC as an alternative payment method for transactions between financial institutions and users in late 2022
Crypto investment and trading have grown significantly in Thailand over the past few years, and in late March, citing the need to prevent various financial and economic threats, the country’s financial regulator took steps to curb the use of cryptocurrencies for payments, with the SECpreventing digital asset operators from offering related servicesissued rules to
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