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Thailand’s Cabinet simplified tax laws for investments in digital assets on Tuesday to encourage and expand the business.
Finance Minister Arkhom Termpittayapaisith told a press conference that the regulations would allow traders to credit yearly losses against profits for taxes due on cryptocurrency investments. The new laws will also exclude cryptocurrency trading from a 7% value-added tax on recognized exchanges.
According to him, the tax exemption would include trading of retail central bank digital currency to be issued by the central bank from April 2022 to December 2023.
According to a ministry spokesman, Thailand’s digital assets have developed rapidly in the last year, with trading accounts increasing from 170,000 in January to almost 2 million by the end of 2021.
Thailand’s stance on cryptocurrency
Traders will be able to credit their yearly losses against profits for tax purposes, according to Finance Minister Arkhom Termpittayapaisith.
The Thai government enacted the new tax laws in response to a recent rise in cryptocurrency trading.
The new laws will provide traders with several benefits, including tax exemption, loss compensation, and increased crypto trading activity in Thailand.
The administration has been eager to support and assist the cryptocurrency industry development. In addition to lowering crypto taxes, the Cabinet has authorized tax benefits for startup investments.
Investors who have owned startup shares for more than two years will be eligible for tax deductions on the sale of their shares. The deal will last until 2032.
According to finance minister Arkhom Termpittayapaisith, the updated tax laws were intended to boost the embryonic digital asset market in Southeast Asia’s second-largest economy.
Thailand has become one of Asia’s most popular crypto destinations, thanks to the government’s crypto-focused policies and willingness to respond to criticism from ecosystem stakeholders.
The new tax regulations might serve as a model for other countries considering enacting some sort of crypto taxes.
After the Indian government declared a 30% tax on crypto holdings without accounting for dealers’ losses, Indian crypto traders have demanded something similar.