On Sunday, May 13, Thailand put in a new law to control and regulate cryptocurrency transactions and ICOs.
Authorities imposed two kinds of taxes on operations with cryptocurrencies: a value-added tax (VAT) of 7% and a capital gains tax of 15%. Following criticism, Thailand’s Revenue Department announced that it will waive the VAT on individual cryptocurrency owners.
Saroch Thongpracum, Director of Legal Affairs of the country’s Revenue Department, announced at a press conference on Tuesday:
“The Revenue Department will waive value-added tax for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC).”
At the same time, the legislation mentions that investors will have tax benefits only if they carry out transactions on digital currency exchanges approved by the authorities. Individuals were also reminded that they remain liable for the 15% capital gains tax on income earned in a transaction.
The official further added that the tax authority would “revise tax regulations” for private firms trading in cryptocurrencies.
As of today, both private companies and individual investors are subject to income tax if they trade cryptocurrencies.
By Ekaterina Ulyanova