Coinspeaker
Thailand Makes Crypto Trading VAT-free in Major Boost to Industry
In a massive development, the Finance Ministry of Thailand announced the exemption of value-added tax (VAT) on crypto asset trading in a move that seeks to establish the country as a prominent digital asset hub.
This decision, highlighted in a recent Bangkok Post report, is intended to encourage the use of digital assets as a fresh avenue for fundraising and stimulate the expansion of Thailand’s digital asset industry. Paopoom Rojanasakul, the secretary to the finance minister, shared the ministry’s vision with the media, emphasizing the strategic utilization of digital assets to propel the nation’s digital economy forward.
As regulators aim to establish Thailand as a digital assets hub in the region, the ministry has relaxed tax regulations by waiving the 7% VAT on earnings generated from cryptocurrency and digital token trading. This VAT exemption came into effect on January 1, 2024, with no specified expiration date.
Furthermore, the Thai Finance Ministry and SEC are currently revising the 2019 Securities and Exchange Act. These revisions aim to classify digital investment tokens akin to securities, promoting a regulated and safer investment landscape.
Thailand has emerged as a prominent choice for offshore digital asset investors, and these updated tax regulations are likely to greatly enhance the nation’s digital asset market.
Nevertheless, amid these developmental efforts, Paopoom stressed the importance of the government to prioritize the stability of the financial system.
Exempting VAT for Token Transfers
It’s important to highlight that since May 14, 2023, the transfer of digital investment tokens to third parties has been exempt from VAT. Initially limited to authorized digital asset exchanges, this exemption further expands to include brokers and dealers supervised by the Securities and Exchange Commission (SEC).
The Thailand SEC has updated the criteria for investing in digital tokens, relaxing certain restrictions. In a recent meeting, the SEC Committee endorsed principles to enhance investment criteria and related regulations for digital asset business operations. The goal is to establish robust investor protection mechanisms while acknowledging the risks associated with digital assets.
One significant change is the removal of investment limitations for retail investors concerning digital tokens backed by real estate or generating real estate income streams (real estate-backed ICOs) and digital tokens associated with infrastructure operations or revenue streams (infra-backed ICOs).
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Thailand Makes Crypto Trading VAT-free in Major Boost to Industry
Source: https://www.coinspeaker.com/thailand-crypto-trading-vat-free/