The Royal Thai Government Gazette has formally announced a VAT exemption for transferring cryptocurrency from now until the end of 2023.
The cabinet had approved the exemption of the value added tax, or VAT, for transferring cryptocurrency or digital tokens in March. Yesterday, the decision was passed into Thai law and will be in effect from yesterday until December 31, 2023.
According to the document, VAT for transferring cryptocurrency, or digital tokens via digital asset exchanges approved by the Ministry of Finance, will be exempted. The VAT for transferring cryptocurrency launched by the Bank of Thailand, or Retail Central Bank Digital Currency – Retail CBDC, will also be exempt from VAT charges.
The Finance Minister, Arkom Termpittayapaisit, revealed that the relaxed tax rules would make the cryptocurrency exchange in Thailand more reliable and stable. The transactions would be under the supervision of the Office of the Securities and Exchange Commission and other relevant state departments.
“This would encourage Thailand to have an infrastructure and payment system that would be ready for the future digital economy.”
The Director-General of the Revenue Department, Ekniti Nititthanprapas, added that the relaxed rules would offer more convenient buying and selling processes to digital inventors in Thailand. The investors would get a fair tax payment and safe transaction, and Thailand would get a “good image” in the global digital economy.