Thailand Finance Ministry Initiates VAT Exemption on Digital Asset Trading to Bolster Industry Growth
In a bid to position Thailand as a prominent digital asset hub, the Finance Ministry has unveiled a strategic move to exempt value-added tax (VAT) on digital asset trading. The initiative aims to foster the growth of the digital asset industry, presenting digital assets as a viable fundraising tool. Paopoom Rojanasakul, the secretary to the finance minister, highlighted the ministry’s commitment to promoting digital assets and fortifying the nation’s digital economy.
Effective from January 1, 2024, the VAT exemption entails the suspension of the 7% VAT requirement on income derived from cryptocurrency and digital token trading, with no specified expiration date. The move signifies a deliberate effort to ease tax regulations and attract digital asset investors, supporting Thailand’s ambition to emerge as a regional digital asset hub.
Previously applicable only to authorized digital asset exchanges, the VAT exemption on digital asset trading now extends to brokers and dealers supervised by the Securities and Exchange Commission (SEC). Notably, the transfer of digital investment tokens to a third party has been VAT-exempt since May 14, 2023.
Simultaneously, the Finance Ministry and SEC are actively engaged in the process of amending the 2019 Securities and Exchange Act to align digital investment tokens more closely with securities. This regulatory adjustment aims to enhance the oversight of digital assets and contribute to the stability of the financial system.
Acknowledging Thailand’s stature as a preferred jurisdiction for offshore digital asset investors, these new tax policies are poised to invigorate the country’s digital asset market further. Paopoom, however, emphasized the government’s responsibility to balance developmental potential with the stability of the financial system. The VAT exemption on digital asset trading is anticipated to incentivize investment and innovation in the sector, bolstering Thailand’s position in the evolving landscape of digital assets.
Digital Assets Desk
