The Thai Ministry of Finance recently announced a revolutionary change in its tax policy, exempting domestic #cryptocurrency trading from the value-added tax (VAT). This move signifies a significant shift towards a more favorable stance on cryptocurrencies, albeit with uncertainties for foreign investors.

Proposal for Digital Assets

According to data published in the Bangkok Post on February 7th, Secretary of the Ministry of Finance, Paopoom Rojanasakul, emphasized the ministry's effort to promote digital assets as a new tool for fundraising.

Changes in Tax Regulations

The new government has decided to make changes in tax regulations concerning cryptocurrencies. The 7% VAT previously required on income from cryptocurrency trading has been suspended. This tax exemption came into effect on January 1st, 2024, without specifying a definitive end date for its validity.

Exemption Also Applies to Crypto Exchanges

The VAT exemption not only applies to the transactions themselves but also to regulated cryptocurrency exchanges, brokers, and dealers under the supervision of the Thai Securities and Exchange Commission.

Thailand's Potential as a Crypto Hub

The Post emphasized that the new tax policy could support Thailand's growth as an offshore crypto hub and attract further investors to the country's digital ecosystem.

Uncertainty for Foreign Investors

Despite these positive steps, uncertainty remains for foreign investors. In September, the government issued a new decree stating that foreign income from cryptocurrency trading is subject to personal income tax if acquired in Thailand.

Challenges for Foreign Investors

Accessing Thai cryptocurrency exchanges is also becoming more challenging for foreign investors, partly due to the lack of opportunities to obtain a national digital identity, which is necessary for opening a trading account.

Conclusion

While Thailand is taking measures to support the domestic cryptocurrency market, foreign investors remain on the sidelines facing obstacles. It is evident that despite efforts towards regulation and support, challenges persist that hinder full engagement in Thailand's crypto market.

#tax

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“