BANGKOK (Reuters) – Thailand’s cupboard on Tuesday relaxed tax rules for investments in digital assets to assist promote and develop the business following a surge in cryptocurrency buying and selling in Southeast Asia’s second-largest economic system.
The rules, in step with an earlier announcement, will permit merchants to offset annual losses towards beneficial properties for taxes due on cyptocurrency investments, and exempt a value-added-tax of seven% for cryptocurrency buying and selling on approved exchanges, Finance Minister Arkhom Termpittayapaisith advised a information convention.
The tax exemption, efficient from April 2022 to December 2023, may even cowl buying and selling of retail central financial institution digital forex to be issued by the central financial institution, he stated.
Digital assets have grown quick in Thailand over the previous 12 months, with buying and selling accounts surging to about 2 million on the finish of 2021 from simply 170,000 earlier that 12 months, a ministry official stated in January.
Bitcoin is the preferred cryptocurrency in Thailand.
The cupboard additionally accepted tax breaks for direct and oblique investments in startups, Arkhom stated. Investors who make investments for at the least two years in startups might be provided the tax break for 10 years till June, 2032.
($1 = 33.1800 baht)
(Reporting by Orathai Sriring, Kitiphong Thaichareon, Satawasin Staporncharnchai and Panarat Thepgumpanat; Editing by Kanupriya Kapoor)