Thailand has announced the exclusion of value-added tax (VAT) on crypto transactions made through authorized digital asset exchanges. The exemption, outlined in Royal Decree No. 744, was officially published in the Royal Gazette on Tuesday.
Effective January 1, 2024, the current government has removed the 7% VAT on income from cryptocurrency trading. In addition, starting May 2023, transferring crypto assets to third parties in Thailand will be exempt from VAT. This exemption applies specifically to regulated exchanges, brokers, and dealers who are supervised by the Thai Securities and Exchange Commission.
The finance minister is responsible for implementing and overseeing this decree, which aims to support Thailand’s growing cryptocurrency sector. It’s worth noting that in March 2023, authorities restricted cryptocurrency use for payments, expressing concerns about financial and economic stability. The SEC also discouraged digital asset operators from offering such payment services.
The Finance Minister of the country, Arkom Termpittayapaisit, is optimistic that the decreased tax load will boost the dependability and stability of cryptocurrency trading within the nation. He stressed that this step is geared towards promoting the establishment of infrastructure and payment systems suitable for Thailand’s upcoming digital economy.
This action is in line with Thailand’s overarching strategy to establish itself as a digital asset hub and stimulate innovation in the fintech sector. The choice to temporarily waive VAT on crypto transactions demonstrates the government’s proactive stance in creating a favorable environment for the expansion of digital assets.
Thailand has been making significant strides in embracing cryptocurrencies. The Securities and Exchange Commission (SEC) of Thailand has introduced more crypto-friendly regulations, such as removing retail investors’ limits for asset-backed tokens.
Additionally, Binance Thailand has opened a cryptocurrency exchange for trading, which is expected to contribute to the growth of the crypto market in Thailand. Thailand has seen a growing interest in cryptocurrency investments.
Despite challenges faced in 2021, the COVID-19 bull run propelled Bitcoin to an all-time high of over two million Thai Baht as Thailand ranked first globally with almost 5.7 million NFT users. The following year, it was recorded that about 12% of Thais used cryptocurrency.
Furthermore, Thailand was among the first countries to regulate cryptocurrency and issue digital asset licenses, indicating a proactive approach to integrating cryptocurrencies into its financial system.