Crypto News

Thailand cuts 7{d433fa1c024495e3d30fb9a8ae174a80907308b9b8a5f0e72f30e7e693d34bc9} VAT for Individual Crypto Investors

Thailand cuts 7{d433fa1c024495e3d30fb9a8ae174a80907308b9b8a5f0e72f30e7e693d34bc9} VAT for Individual Crypto Investors

Thailand Cuts 7{d433fa1c024495e3d30fb9a8ae174a80907308b9b8a5f0e72f30e7e693d34bc9} VAT for Individual Crypto Investors

Individual crypto investors in Thailand rejoice as the Revenue Department has announced a 7{d433fa1c024495e3d30fb9a8ae174a80907308b9b8a5f0e72f30e7e693d34bc9} slash in VAT rates. On Monday, the country announced that it will be regulating crypto activities and initial coin offerings in the country. The Thai Securities and Exchange Commission (SEC) will be responsible for regulating the company’s crypto environment. With regulatory oversight, the government is further softening its view on digital assets by slashing the rates of the value added tax.

As the legal framework came into effect on Monday, the investors in Thailand can finally operate in a safe and positive environment. Currently, all transactions in crypto are subject to income taxes. This is applicable to both individual investors as well as private companies. Saroch Thongpracum, the director of Legal Affairs of the Revenue Department of Thailand announced the waving of rates during a press conference on Tuesday. He said, “The Revenue Department will waive value-added tax for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC).”

However, no changes have been made to the capital gains tax structure. Mr. Saroch explained, “Individuals will still have to pay a 15 percent capital gains tax, also known as a withholding tax, on income earned in a transaction.”

With the waiver of tax individual investors, the country is aiming to reduce their tax burden. The department would soon issue a regulation that will bring it into effect. According to a news outlet, private companies raising funds from ICOs will have to pay a corporate income tax on all funds raised.

The new decree states that the Thai SEC will be regulating all digital assets in the country. It will have regulatory oversight over ICO portals, dealers as well as brokers. All the three parties will have to obtain a license from the Finance Minister in order to operate in the country. The full regulations will be available in the country next week but the SEC has already assumed the responsibility of the regulator.

The secretary general of the agency, Rapee Sucharitakul said, “The public hearing will take 2-3 weeks because investments in digital tokens are complicated and carry high risks,” as reported by the Bangkok Post. Unless the full legislation comes into effect, all ICOs in the country have been banned. However, the portals can still apply for registration and licensing.

He further stated, “The new regulation aims to provide protection for general investors since only investors who have knowledge of ICO issuance or digital-asset transactions should be allowed to engaging in this kind of trading.”

In the meanwhile, the Bank of Thailand announced that it will not take any action unless the SEC releases more details about the new regulatory policies in cryptocurrencies. Chantavarn Sucharitakul, the Assistant Governor of the Bank of Thailand told the publication that they would prefer to wait for more clarity instead of taking any instant steps. Previously, the central bank even asked the financial institutions in the country to avoid dealing in any cryptocurrency transactions. We will have to wait for another month before the country to release their crypto policy in its entirety.

About the author

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Brian Booker

An international financial analyst and writer. He has consulted for the Malaysian government, various MNC’s, and other organisations. He focuses on currencies, commodities, and emerging South East Asian markets.

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