Thailand Exempts Crypto Transfers From VAT Until End of 2023 – Thailand’s government has formally provided a VAT exemption for cryptocurrency transfers made through government-approved exchanges. The tax break, which would last until the end of next year, will however apply to digital currency issued by the Bank of Thailand.
Investors who move cryptocurrencies and digital tokens through Thai exchanges will be eligible for a 7% VAT exemption on their transactions. The tax break was enacted retroactively from April 1, 2022, according to a decree published in the Royal Gazette on Tuesday. According to local media, it will stay in effect until December 31, 2023.
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The government approved the policy in March, and it applies to trading platforms that are 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 journal.
The major goal of the tax relief, according to the document, is to promote cryptocurrency trading on recognized exchanges, allowing crypto transactions to be regulated and supervised by relevant departments such as the Securities and Exchange Commission (SEC).
Thailand’s Finance Minister, Arkom Termpittayapaisit, is certain that the country’s cryptocurrency exchange would become more dependable and stable as a result of the reduced tax rules.
He’s also been quoted as saying:
“This would encourage Thailand to develop infrastructure and payment systems that are suitable for the digital economy of the future.”
Ekniti Nititthanprapas, Director-General of the Revenue Department, noted that crypto trading will be more easy for investors, who will benefit from fair tax treatment and secure transactions, while Thailand’s image in the global digital sector improves.
Another royal decree, also announced on May 24, extends the VAT exemption to transfers with Thailand’s monetary authority’s retail central bank digital currency (CBDC). The Bank of Thailand said in December that it plans to begin testing the CBDC as an alternative payment method in late 2022 in transactions between financial institutions and users.
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Thailand has seen a substantial increase in cryptocurrency investment and trade in recent years. The country’s financial regulators took efforts to curb the use of cryptocurrencies for payments in late March, citing the need to avert different financial and economic concerns, with the SEC releasing guidelines meant to discourage digital asset operators from offering such services.
