Thailand authorities have revised the local tax policy to exempt cryptocurrency traders from the mandatory 7% value-added tax (VAT), but on one condition.
What Happened: Thailand's finance ministry decided to waive the mandatory 7% VAT tax imposed on crypto trades if the traders operate on authorized cryptocurrency exchanges and also offers tax exemptions of up to 10 years for crypto startup investors, according to a Tuesday Reuters report. The news follows the country dropping its plans to impose a 15% tax on cryptocurrency capital gains following a widespread backlash in early February.
See Also: IS REGULATION BAD FOR CRYPTO?
Thailand's revised tax policy also allows traders to offset their annual losses against gains when filing their crypto investment taxes. These new regulations and exemptions will come into full effect from April and will last until December 2023. The country's finance minister Arkhom Termpittayapaisith said the new rules were developed to promote the nascent digital asset market in the local market.
BTC Price Action: As of press time, Bitcoin is trading at $38,547 after seeing its price drop by 1.35% over the last 24 hours.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.