Following a boom in cryptocurrency trading in Southeast Asia’s second-largest economy, Thailand’s cabinet on Tuesday eased tax restrictions for investments in digital assets in order to promote and expand the business, according to the government.
The rules, which are in line with an earlier announcement, will allow traders to deduct annual losses from gains when calculating taxes due on cryptocurrency investments, as well as exempt cryptocurrency trading on authorised exchanges from a value-added tax of 7 percent, Finance Minister Arkhom Termpittayapaisith said at a news conference.
According to him, the tax exemption, which will be in place from April 2022 to December 2023, will also include the trade of retail central bank digital currency, which will be issued by the central bank.
An official from the Thai Ministry of Finance stated in January that digital assets had risen rapidly in recent months, with trading accounts expected to reach over 2 million by the end of 2021, up from just 170,000 at the beginning of that year.
Bitcoin is the most popular cryptocurrency in Thailand, with over a million users.
In addition, tax benefits for direct and indirect investments in startups have been approved by the cabinet, according to Arkhom. Investors that make investments in startups for at least two years will be eligible for a tax cut that will last for ten years, until June 2032.