Thailand Removes 7% VAT for Crypto Trading to Bolster Digital Economy

• Thailand’s Finance Ministry waived the value-added tax on digital asset trading.
• VAT exemption on crypto was limited to authorized virtual asset exchanges.
• It has been extended to brokers and dealers under the Thai SEC’s supervision.

The Finance Ministry of Thailand has unveiled pivotal tax reforms to position Thailand as a leading digital asset hub. According to a local report, the country has waived its 7% value-added tax (VAT) on cryptocurrency and digital token transactions.

The report cited Paopoom Rojanasakul, the secretary to the finance minister, as the announcer of the new tax break. It noted that the action aligns with Thailand’s commitment to embracing digital innovation. 

According to the report, the initiative went into effect starting January 2024. It stated that the government seeks to catalyze the growth of the digital asset industry while fostering a vibrant digital economy.

Since May 14, 2023, the transfer of digital investment tokens to a third party has remained exempt from VAT. Also, VAT exemption on digital asset trading was previously limited to authorized virtual asset exchanges. However, the new rule has extended it to brokers and dealers under the supervision of the Thai Securities and Exchange Commission (SEC).

Furthermore, the report disclosed that the Finance Ministry and SEC are currently seeking to amend the 2019 Securities and Exchange Act to enable digital investment tokens to bear resemblance to securities.

Also, it highlighted that Thailand has emerged as one of the premier jurisdictions for offshore digital asset investors. Therefore, it argued that the implementation of new tax policies holds the potential to bolster the country’s digital asset market significantly. 

However, Paopoom emphasized the importance for the government to concurrently prioritize the financial system’s stability while harnessing its development potential.