Thailand approves relaxed tax rules for digital assets

As per the reports, the ministry of finance, Thailand approves relaxed tax rules for investments in digital assets this step is taken in order to help promote and develop the industry following a surge in cryptocurrency trading in Southeast Asia’s second-largest economy.

Finance Minister Arkhom Termpittayapaisith told a press conference that the rules will allow traders to credit annual losses against gains for taxes due on cryptocurrency investments, and will exempt cryptocurrency trading on authorised exchanges from a 7% value-added tax.

According to him, the tax exemption will include trading of retail central bank digital currency to be issued by the central bank from April 2022 to December 2023.

Investors who invest for at least two years in crypto companies in the country would be eligible for tax breaks of up to ten years under the new tax policy.

The updated tax policies, according to finance minister Arkhom Termpittayapaisith, 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 regulations and willingness to respond to criticism from ecosystem stakeholders.

The new tax regulations could 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.

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Shambhavi Soni