Thailand’s Ministry of Finance has reportedly relaxed cryptocurrency tax rules to boost investment in the digital asset market.
The changes to tax rules come just a few weeks after the government scrapped its early plans to introduce a 15% tax on crypto profits. The new tax policy exempts crypto traders from the 7% value-added tax (VAT) on authorized exchanges, reported Reuters.
The revised tax policy would also allow traders to offset their annual losses with gains for their crypto investment. This is a great relief to traders, as most governments at the moment are only out for tax profits without taking into account the losses traders incur due to crypto market volatility. The new tax exemptions would take effect from April 2022 and last until December 2023.
The new tax policy promises to provide tax exemptions of up to 10 years for investors who invest in crypto startups in the country for at least two years.
Related: Here’s How The Thai Stock Exchange Plans To Connect Crypto With Its Digital Asset Platform
Finance Minister Arkhom Termpittayapaisith said the revised tax policy was designed to foster the nascent digital asset market in Southeast Asia’s second-largest economy. Thailand has become one of the leading crypto destinations in Asia, thanks to its crypto-centric government regulation and ability to work on feedback from ecosystem stakeholders.
The new tax policy could also become a benchmark for other countries that currently want to impose some form of crypto tax. Indian crypto traders have demanded something similar after the Indian government announced a 30% tax on crypto holdings without taking into account the losses incurred by traders.