The Thailand Finance Ministry has announced the removal of the previously applicable value-added tax on digital asset trading. This exemption, which took effect on Jan. 1, 2024, extends to regulated brokers, dealers, and authorized cryptocurrency exchanges.
VAT Exemption to Bolster Thailand’s Digital Asset Industry
To establish Thailand as a hub for digital assets, the Bangkok government recently announced the removal of value-added tax (VAT) on digital asset trades. A report suggests that the Thai government is optimistic that this decision will strengthen the digital asset industry and propel the nation’s digital economy forward.
Paopoom Rojanasakul, secretary to the Finance Minister of Thailand, also revealed his ministry’s interest in utilizing digital assets as an alternative fundraising mechanism. The VAT exemption, which has no expiration date, reportedly came into effect on Jan. 1, 2024. Alongside the VAT exemption, the ministry also eliminated the 7% VAT on income derived from cryptocurrency trading.
A report in the Bangkok Post on Jan. 7 revealed that the VAT exemption on digital asset trading now applies to regulated brokers and dealers, as well as authorized crypto exchanges. Before this rule change, the VAT exemption on crypto trading was solely applicable to regulated crypto exchanges.
Finding the Right Balance
In the meantime, the report indicated that both the Finance Ministry and Thailand’s Securities and Exchange Commission (SEC) are currently amending the 2019 Securities and Exchange Act. This amendment will allow digital investment tokens to bear resemblance to securities, the report added.
Despite its growth into one of the leading jurisdictions for offshore investors, Thailand’s crypto asset market continues to face challenges. To address these issues, Rojanasakul has called on the government to also consider the stability of the financial system when attempting to harness the development potential of digital assets.
Source : Bitcoin News by Terence Zimwara / Feb 9, 2024