Thailand’s Revenue department has released what we believe is a great news for all crypto investors. The decree took effect on Monday, and it says that 7 percent value-added tax for individual cryptocurrency investors will be waived.
The nation’s multimedia explained that cryptocurrency transactions are currently subject to income tax for both private companies and individual investors. The country has decided that the Thai Securities and Exchange Commission (SEC) will be in charge of the regulations for digital currencies and initial coins offerings. The Director of Legal Affairs of the country’s Revenue Department, Saroch Thongpracum, announced in a press conference last Tuesday that: “The Revenue Department will waive value-added tax for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC).”
The director laid an emphasis that “Individuals will still have to pay a 15 percent capital gains tax, also known as a withholding tax, on income earned in a transaction.”
The reason for the VAT waiver for individuals crypto traders is to “reduce their tax burden”, as seen in the publication, in addition to the fact that the Revenue Department “would issue a regulation waiving the 7 percent VAT individual investors.”
The news outlet has also detailed, “Under the new law, private companies launching ICOs have to pay corporate income tax on the funds they raise from the exercise.”
Three groups will be regulated: brokers, dealers, and ICO portals. The department’s spokesperson said that they will have to obtain licenses from the Finance minister.
According to the SEC chief, the commission will be issuing regulations on cryptocurrencies and ICOs by the end of the month of June after they holding a public hearing. The public hearing is expected to take 2-3 weeks because investments in digital tokens are complicated and carry high risks, as reported by the Bangkok Post. During that period, ICOs will be banned in the country.
The news outlet quoted Mr. Rapee, the SEC secretary general in this manner: “The new regulation aims to provide protection for general investors since only investors who have knowledge of ICO issuance or digital-asset transactions should be allowed to engaging in this kind of trading.”
The Bank of Thailand said they will wait until the SEC releases more details on the regulations before taking any action.