The Thai Ministry of Finance has eased crypto tax regulations to promote investment in the digital asset market.
The changes to tax regulations come just weeks after the government scrapped its initial plans to introduce a 15% tax on crypto earnings. The new tax policy exempts crypto traders from the 7% value added tax (VAT) on authorized exchanges, Reuters reported.
The revised tax policy would also allow traders to offset their annual losses against the gains from their cryptocurrency investment. This is a huge relief for traders, given that most governments at the moment only seek to tax profits without taking into account the losses suffered by traders due to crypto market volatility.. The new tax exemptions would take effect from April 2022 and would last until December 2023.
The new tax policy promises to offer tax breaks of up to 10 years for investors who invest for at least two years in cryptocurrency startups in the country.
Finance Minister Arkhom Termpittayapaisith said the revised fiscal policies had been developed to promote the nascent digital asset market in Southeast Asia’s second-largest economy. Thailand has grown to become one of the leading crypto destinations in Asia, due to the government’s crypto-focused regulations and ability to work with feedback from ecosystem stakeholders.
The new tax policies could also become a benchmark for other nations currently seeking to impose some form of crypto tax. Indian crypto traders have been demanding something similar after the Indian government announced a 30% tax on crypto holdings without taking into account the losses suffered by traders.
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