Thailand’s authorities have officially introduced an exemption from the value-added tax (VAT), for cryptocurrency transfers through government-approved exchanges. The Bank of Thailand will issue digital currency.
Royal Decrees Exempt Crypto Trading from VAT in Thailand
Investors who move cryptocurrencies or digital tokens through Thailand’s exchanges will be eligible for a 7% VAT exclusion. The tax exemption was retroactively implemented by a decree, published in Royal Gazette on Tuesday. Local media reported that it will remain in effect until December 31, 2023.
This measure, approved in March by the government, concerns trading platforms that are registered with the Ministry of Finance. This decision is now part of Thai law and enters into effect on the day it was published in the official journal.
According to the document the main purpose is to encourage cryptocurrency trade on authorized exchanges. This allows crypto transactions to be regulated and conducted under supervision by relevant departments such as the Securities and Exchange Commission (SEC).
Arkom Termpittayapaisit, Thailand’s Finance Minister, believes that cryptocurrency exchange in Thailand will be more stable and reliable due to the relaxed tax rules. He also stated:
This would encourage Thailand’s infrastructure and payment system to be ready for the digital future.
Ekniti Nitthanprapas, Director General of the Revenue Department, stated that crypto trading will be easier for investors as they will receive fair tax treatment and secure transactions. This will help Thailand to improve its image in the digital space.
Another royal published on May 24 extends VAT exclusion to transfers using a digital currency (CBDC), issued by Thailand’s central bank. The Bank of Thailand revealed in December that it plans to test the CBDC in transactions between financial institutions, users, and other payment methods.
Over the last few years, crypto trading and investment have increased significantly in Thailand. The country’s financial regulators made steps to limit cryptocurrency payments in March. In response to various economic and financial threats, the SEC announced rules to discourage operators of digital assets from offering such services.
