Cabinet okays VAT exemption, income tax deduction on cryptocurrencies, digital tokens
The Cabinet on Tuesday approved value-added tax (VAT) exemption and personal income tax deduction on cryptocurrencies and digital token trading.
The draft royal decree on VAT exemption, which covers the trade of cryptocurrencies or digital tokens in digital asset exchanges and digital currencies issued by the Bank of Thailand (BOT), will come into effect from April 1 this year and last until December 31 next year.
Meanwhile, the draft ministerial regulation on personal income tax deduction will be calculated from profit minus loss in the same tax year since May 14, 2018, resulting in a decline in tax payment.
“Investment in digital assets has been developing quickly, so investors must pay 15 per cent of profit from cryptocurrencies or digital token trading after a loss deduction in personal income tax,” said government spokesman Thanakorn Wangboonkongchana.
He said these measures aim to facilitate and maintain fairness among those who invest in digital assets as there are many limitations in VAT-related laws, such as volatility in the value of digital currency and unclear profit and loss.
Thanakorn said BOT is evaluating the efficiency of a retail central bank digital currency on payment and transfer.
“These measures also help support the development of infrastructure, payment systems and the digital economy,” he said.
Prime Minister Prayut Chan-o-cha has ordered the Finance Ministry to discuss with BOT and the Securities and Exchange Commission the implementation of a clear digital asset-related policy and measures to meet with changes in the digital asset market, Thanakorn said.
“The government aims to maintain fairness among investors and entrepreneurs in the digital asset market, promote a fintech driven finance industry, stimulate investment and create innovations for the country,” he added.