The Cabinet this week approved relaxed tax rules for cryptocurrency traders, in line with other crypto-related measures previously announced by the government. Investors will be exempt from a value-added tax (VAT) of 7% for crypto trading on authorized exchanges.
Finance Minister Arkhom Termpittayapaisith announced that traders will also be allowed to offset their annual losses against gains for taxes. The new tax rules were introduced in response to a surge in crypto trading in recent years.
The new rules will offer traders several benefits, including exemption from value-added taxes, settlement of losses, and higher crypto trading activity in Thailand.
The administration has been keen to promote and help develop the cryptocurrency industry. In addition to relaxed crypto taxation, the Cabinet has also approved tax breaks for investments in startups. Investors will be offered tax exemptions from selling startup shares, provided they have had the shares in their possession for longer than two years. The offer is valid until 2032.
The relaxed rules will be effective from April 2022 to December 2023 and apply to Thailand’s central bank digital currency as well as other cryptocurrencies in circulation.
The Kingdom’s crypto-economy has grown significantly over the past year from 170,000 active crypto traders in January 2021 to 2 million at the end of the year. Especially after the move by SCB to acquire the popular training application in Thailand Bitkub.