The Finance Ministry of Thailand has decided to not charge VAT for digital asset trading in order to make Thailand a main hub for digital assets.
The decision is made to support digital assets as a new way to raise money and help the digital asset industry in Thailand to grow, as said in a report by Bangkok Post.
The finance minister’s secretary, Paopoom Rojanasakul, talked to the media about how the ministry wants to use digital assets to help the country’s digital economy grow.
Thailand stops charging 7% tax
The ministry has made it easier for people trading cryptocurrency to not have to pay 7% VAT on their income.
Starting on January 1, 2024, people who invest or trade in digital assets won’t have to pay VAT. This rule won’t end, so it will be a good incentive for them for a long time.
It’s important to know that transferring digital investment tokens to someone else doesn’t have any VAT tax since May 14, 2023.
This rule, which used to only apply to certain digital asset exchanges, now also applies to brokers and dealers overseen by the SEC.
To make Thailand a central place for digital money, the Finance Ministry and SEC are changing the Securities and Exchange Act from 2019.
These changes will make digital investment tokens more like securities, creating a safer and more controlled environment for investors.
Thailand is now a top place for investors who want to put their money into digital assets from other countries. The new tax rules are expected to help the digital asset market in Thailand grow a lot.
However, as there is a push for progress, Paopom pointed out the need for the government to think about keeping the financial system steady.
It’s important to make sure that the financial system stays safe and strong when using digital assets.
“Thailand’s securities regulator makes it easier to invest in cryptocurrency. “
The SEC of Thailand has made it easier for people to invest in digital tokens by changing the rules.
In a recent meeting, the SEC Committee agreed on new rules to make it safer for people to invest in digital assets. They want to protect investors while also being aware of the risks involved in dealing with digital assets.
The commission has removed rules that limited regular people from investing in digital tokens that are backed by real estate or make money from real estate, and digital tokens with infrastructure operations or money coming in.
In the past, regular investors could only invest up to 300,000 baht in one offering
The SEC looked at the rules for starting companies that keep digital wallets safe, so they can help people who use digital money.
Even though, Thailand’s SEC said they won’t allow the trading of spot Bitcoin ETFs in the country.
Despite the United States approving Bitcoin ETFs, there has been a significant change in attitude after many years of hesitancy because of the risks related to cryptocurrencies.