The finance ministry of Thailand has reportedly eased up crypto tax regulations to promote investment in the digital asset market.
The changes to the tax regulations come just a few weeks after the government scrapped its early plans of introducing a 15% tax on crypto gains. The new tax policy exempts crypto traders from the 7% value-added tax (VAT) on authorized exchanges, reported Reuters.
The revised tax policy would also allow traders to offset their annual losses against gains for their crypto investment. This comes as big relief for traders, given most of the governments at this point are only looking to tax gains without taking into account the losses incurred by traders due to the crypto market volatility. The new tax exemptions would come into effect from April 2022 and last until December 2023.
The new tax policy promises to offer tax exemptions of up to 10 years for investors who invest for at least two years in crypto startups in the country.
Related: Here’s how the Thai Stock Exchange plans to connect crypto with its digital asset platform
The finance minister Arkhom Termpittayapaisith said that the revised tax policies had been developed to promote the nascent digital asset market in South East Asia’s second-largest economy. Thailand has grown to become one of the leading crypto destinations in Asia, owing to the government’s crypto-centered regulations and ability to work on the feedback from the stakeholders of the ecosystem.
The new tax policies could also become a benchmark for other nations currently looking to impose some form of crypto taxation. Indian crypto traders have been demanding something similar after the Indian government announced a 30% tax on crypto holdings without accounting for the losses incurred by traders.