According to reports, the finance ministry of Thailand has relaxed crypto tax regulations in order to encourage investment in the digital asset marketplace.
These changes to tax regulations are just weeks after the government abandoned its earlier plans of imposing a 15% tax for crypto gains. According to Reuters, the new tax policy exempts crypto trader from the 7% value added tax (VAT), which is applicable only to authorized exchanges.
The updated tax policy will allow traders to offset annual losses against gains from their crypto investments. This is a huge relief for traders as most governments are only interested in tax gains and do not consider the losses traders have incurred due to volatility in the crypto market. The new tax exemptions will be in effect starting April 2022 and lasting until December 2023.
Investors who invest at least 2 years in crypto startups will be eligible for tax exemptions up to 10 years.
Related: How the Thai Stock Exchange plans on connecting crypto and its digital asset platform
Arkhom Termpittayapaisith, South East Asia’s finance minister, stated that revised tax policies were being developed to support the emerging digital asset market. The government’s ability to listen to stakeholders and create crypto-centered regulations has helped Thailand grow to be one of Asia’s top crypto destinations.
These new tax policies could be a model for other countries looking to implement crypto taxation. After the Indian government announced that crypto holdings would be subject to a 30% tax, without accounting for losses, Indian crypto traders demanded something similar.