Thailand takes steps to become crypto tax haven
Thailand has announced a range of tax benefits that are aimed at boosting the nation’s use of crypto as an investment opportunity.
From April 2022 until the end of 2023, there will be tax relief measures in place, including the exemption of a seven per cent VAT tax on cryptocurrency trades via regulated exchanges.
Additionally, transfers of the Thai CBDC issued bg the Bank of Thailand will be exempted from VAT. This CBDC is expected to enter pilot stages later this year.
Investors will be able to offset annual losses against crypto profits on government-approved exchanges for tax calculations, and earlier this year the government axed a 15 per cent withholding tax that was planned on cryptocurrency.
Thailand is grappling with the various problems that crypto pose from an economic and political perspective. Earlier this year the nation announced that it would be regulating the use of digital assets as a means of payment for goods and services to try and minimise the impact that the highly volatile coins have on people’s ability to buy consume goods.
It would seem that the more recent announcements have been made in a concession for the growing demand for nations to encourage investment, through not necessarily consumer adoption, of crypto.