Thailand approves crypto-friendly tax rules
|- Thailand’s cabinet has approved new tax rules on cryptocurrency investments to promote development of crypto.
- The finance minister has exempted a value-added tax of 7% for users trading crypto on authorized exchanges.
- Crypto adoption in Thailand jumped up, crossing 2 million active traders at the end of 2021.
Thailand’s cabinet is bullish on crypto as the country approves relaxed tax rules for traders, which is in line with other crypto-related measures announced by Thailand's government. Investors would be exempt from a value-added tax (VAT) of 7% for crypto trading on authorized exchanges.
Crypto adoption in Thailand could skyrocket with relaxed tax rules
Arkhom Termpittayapaisith, Finance Minister of Thailand, announced that, in addition, traders would be allowed to offset their annual losses against gains for taxes. The new tax rules were introduced in response to the surge in cryptocurrency trading in Thailand.
The new relaxed rules would offer traders several benefits, including exemption from value-added taxes, settlement of losses and higher crypto trading activity in Thailand.
Southeast Asia’s second-largest economy is keen on promoting and developing the cryptocurrency industry. This objective has fueled the recent relaxation of crypto taxation rules. Proponents expect crypto adoption to skyrocket following the implementation.
In addition to relaxed crypto taxation, Thailand’s cabinet has approved tax breaks for investments in startups. For two years, investors who pour capital into startups would be offered an exemption from taxation until 2032, ten years.
The relaxed crypto rules would be effective from April 2022 until December 2023. The taxation rules would apply to Thailand’s central bank digital currency and other cryptocurrencies in the economy.
Thailand’s crypto-economy has grown significantly over the past year. From 170,000 active crypto traders in January 2021, there was a jump to 2 million at the end of the year. A rise in active traders is key to the cryptocurrency industry as it could fuel demand for cryptocurrency in the country.
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