Thailand’s cabinet on Tuesday eased tax regulations for investments in digital assets to help develop the second-largest growing economy in Southeast Asia.
According to an official press release, tax relief would be imposed, including a 7% value-added tax (VAT) and loss harvesting mechanisms for taxes on cryptocurrencies.
“This issue will allow Thai investors to trade digital assets on a reliable Thai exchange because it is under the supervision of the SEC and other related government agencies, it enables Thailand to have a future payment infrastructure ready for the digital economy,” said Finance Minister Arkhom Termpittayapaisith, said.
The tax exemption from April 2022 to December 2023 would also cover the trading of retail central bank digital currency to be issued by the central bank, Arkhom said.
In January, a ministry official said that digital assets had grown fast in Thailand over the past year, with trading accounts surging to about two million by the end of 2021 from just 170,000 earlier that year.
The cabinet also approved tax breaks for direct and indirect investments in startups, while investors who invest for at least two years would be offered a tax break for ten years until June 2032, Arkhom added.
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