Thai cabinet member Khana Ratthamontri decided today to relax tax rules for investments in cryptocurrencies as a means to generate a cryptocurrency trading market in Southeast Asia.
The rule, in line with the initial announcement that will allow traders/investors to offset annual losses against profits for tax payable on cryptocurrency investments and a value -added tax exemption of 7%. This was informed by Finance Minister Arkhom Termpittayapaisith in a press conference.
Recently, Thailand announced the abolition of a planned 15% withholding tax for cryptocurrencies, following pressure from the crypto community. The crypto market has grown exponentially in Thailand over the past year with trading accounts soaring to about 2 million by the end of 2021 from 170,000 in early in the year as informed by ministry officials in January 2022.
The Cabinet also approved tax breaks for direct and indirect investments in startups, Arkhom said. Investors who invest for at least two years in startups will be offered tax relief for 10 years until June 2032. Last February, the Thai Revenue Department clarified how cryptocurrencies and digital tokens will be taxed after years of government imposing provisions in Revenue Code for taxing digital assets.
In addition, the authorities also provide guidelines for taxing cryptocurrency mining, digital assets received as salaries/wages or gifts, and profits from holding digital assets as investments.
