Thailand will waive high taxes and fees for cryptocurrency traders to help become Asia’s digital asset center.
According to local media reports, Thailand’s Ministry of Finance has canceled the 7% value-added tax (VAT) on transactions in cryptocurrencies and digital tokens. This exemption will take effect on January 1, 2024, and has no expiration date.
According to the Bangkok Post, Paopoom Rojanasakul, secretary to the Thai Finance Minister, said that Thailand’s digital asset exemption measures are designed to encourage people to use digital assets as an alternative way to raise funds. The initiative aims to promote the development of digital assets and provide investors with more financing options.
This exemption was originally set to expire at the end of 2023, but now permanently applies to transactions conducted by digital asset exchanges holding Thai licenses. In addition, transactions conducted by licensed brokers and intermediaries will also be exempt from the 7% value-added tax.
Previously, this VAT measure applied to cryptocurrency transactions, which meant that the tax was payable every time a cryptocurrency was purchased, sold, or traded, significantly increasing the cost of each transaction.
This exemption continues to apply to transfers of cryptocurrency to others, effective from April 2022 to the present.
Thailand’s Ministry of Finance did not respond to media requests for comment.
In order to attract cryptocurrency investment and stimulate economic development, Thailand has taken measures to exempt cryptocurrency transactions from value-added tax. The move is part of Thailand's economic recovery plan as it faces a slowdown in exports of goods and the ongoing impact of the COVID-19 pandemic on tourism.
Thailand’s securities regulatory authorities had introduced more crypto-friendly regulations in January this year.
Despite this, Thailand still takes a cautious approach to the digital asset class, restricting the use of cryptocurrencies for payments, citing concerns that it could harm the soundness of the country’s financial system.
In 2018, Thailand introduced the "Digital Asset Business Emergency Law" and established a licensing system for cryptocurrency exchanges and brokers.
The goal of this measure is to ensure the security and compliance of digital asset services and require platforms to meet strict operating standards. The authorities believe that this will continue to safeguard the financial system and strengthen consumer protection.
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