Thailand has just relaxed tax rules for investments in digital assets. The bid to promote the industry follows a rapid growth in cryptocurrency trading in Southeast Asia’s second-largest economy.
The Finance Minister explained that new rules allow traders to offset annual losses against gains for taxes due on cyptocurrency investments, and exempt a value-added-tax of 7% for cryptocurrency trading on authorized exchanges. The tax exemption, which are effective from April 2022 to December 2023, will also cover trading of retail central bank digital currency to be issued by the central bank. In addition, Thailand also approved tax breaks for direct and indirect investments in startups. Investors who invest for at least two years in startups will be offered the tax break for 10 years.
In a parallel development, Thai company Spring Capital Plc (XPG) announced that it will start offering comprehensive services in the digital asset market. Its subsidiary, XSpring Digital, a digital token trading platform provider, received official status as a digital asset broker and dealer from the Securities and Exchange Commission (SEC). The company aims to win one-third of Thailand’s digital asset market share.
(Sources: Reuters; The Bangkok Post)