Thailand’s Cabinet Approves Crypto-Friendly Tax Regulations

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The new rules will provide traders with several advantages, including exemption from value-added taxes, loss settlement, and increased crypto trading activity in Thailand.
The Cabinet approved relaxed tax rules for cryptocurrency traders this week, following other crypto-related measures announced by the government previously. For crypto trading on authorized exchanges, investors will be exempt from a 7% value-added tax (VAT).

Finance Minister Arkhom Termpittayapaisith announced that traders will be able to deduct their annual losses from their tax gains. The new tax rules were enacted in response to a recent surge in cryptocurrency trading.

The new rules will provide traders with several advantages, including exemption from value-added taxes, loss settlement, and increased crypto trading activity in Thailand.

The administration has been eager to promote and assist in the development of the cryptocurrency industry. In addition to relaxing crypto taxation, the Cabinet has approved tax breaks for startup investments.

Tax breaks for startup investments

Investors who have held startup shares for more than two years will be eligible for tax breaks on the sale of those shares. The promotion is valid until 2032.

The new rules will be in effect from April 2022 to December 2023 and will apply to Thailand’s central bank digital currency as well as other cryptocurrencies currently in circulation.

The Kingdom’s crypto-economy has grown dramatically in the last year, from 170,000 active crypto traders in January 2021 to 2 million by the end of the year.

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