Following a surge in cryptocurrency trading in Southeast Asia’s second-largest economy, Thailand’s cabinet minister, Khana Ratthamontri, has relaxed tax rules for investments in digital assets such as cryptocurrencies and digital tokens in order to encourage and expand the industry.
According to Finance Minister Arkhom Termpittayapaisith, the laws will allow traders to offset yearly losses against profits for taxes payable on cryptocurrency investments and will exclude cryptocurrency trading on recognised exchanges from the 7% value-added tax.
The tax exemption will last from April 2022 until December 2023. In addition, the Finance Minister says, it would also include the trading of retail central bank digital currency that would be made by the central bank.
According to Arkhom, the cabinet also authorised tax benefits for direct and indirect investments in startups. Investors who invest in startups for at least two years will be eligible for a 10-year tax holiday until June 2032.
The tax authorities also issued guidance on how to tax cryptocurrency mining, digital assets received as salaries, wages, or gifts, and income from holding digital assets as investments.