- Royal Decrees enforce VAT exemption for crypto trading in Thailand.
- Thailand exempts crypto transfers from VAT until the end of 2023.
- Thai SEC makes a u-turn on crypto payment ban.
The government of Thailand has formally waved value-added tax (VAT) for payment in cryptocurrencies done via government-approved exchanges. This revelation came via a decree published in the Royal Gazette on Tuesday, May 24, 2022.
The decree noted that the tax breaks will be enforced retroactively from April 1, 2022, until Dec. 31, 2023, which also includes digital currency issued by the Bank of Thailand.
In light of this, investors making transfers in cryptocurrencies and digital tokens through authorized exchanges in Thailand will get a 7% VAT exemption on such transactions.
This would encourage Thailand to have an infrastructure and payment system that would be ready for the future digital economy.
Ekniti Nititthanprapas, the director-general of the Revenue Department, added that crypto trading would be more convenient for investors as they will enjoy fair tax treatment and safe transactions.
On March 23, 2022, Thailand’s Security and Exchange Commission (SEC) announced plans to ban the use of crypto as a means of payment, citing money laundering concerns and the inability of the central bank to step in. Thai SEC, however, stressed that the ban was not on crypto trading but the use of crypto for payments.
The latest development offering tax relief, according to the royal report, was to promote cryptocurrency trade on authorized exchanges, as this would allow relevant departments like the SEC to carry out regulatory checks and proper monitoring of cryptocurrency transactions.