Cryptocurrency tax exempt for trades on approved exchanges until end of 2023

[snoop1130]

Photo from AP

 

Investors who trade cryptocurrencies or digital tokens through properly registered exchanges will be entitled to a 7% VAT exemption on the transfer of the digital assets, retroactively from April 1st 2022 until December 31st 2023, according a Royal Decree published in the Royal Gazette on yesterday (Tuesday).

 

The objective of the VAT exemption, according the decree, is to promote trade in cryptocurrencies or digital tokens through Thailand’s approved exchanges, for proper regulation of digital asset transactions.

 

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The VAT exemption is also extended to trade in the Retail Central Bank Digital Currency (CBDC), issued by the Bank of Thailand, for the same period, according to another Royal Decree already published in the Royal Gazette.

 

Full Story: https://www.thaipbsworld.com/cryptocurrency-tax-exempt-for-trades-on-approved-exchanges-until-end-of-2023/

 

-- © Copyright Thai PBS 2022-05-25

 

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[ukrules]

2 hours ago, snoop1130 said:

Investors who trade cryptocurrencies or digital tokens through properly registered exchanges will be entitled to a 7% VAT exemption on the transfer of the digital assets, retroactively from April 1st 2022 until December 31st 2023

In other words, the government is potentially planning to introduce a 7% VAT rate on crypto transactions from the beginning of 2024.

 

I'm going to go out on a limb here and suggest that this will not happen at all and there will likely be a series of never ending extensions just like this one, but if it does happen then the effect will be quite large and result in the exit of every company working in the sector from inside Thailand.

[Jenkins9039]

4 hours ago, ukrules said:

In other words, the government is potentially planning to introduce a 7% VAT rate on crypto transactions from the beginning of 2024.

 

I'm going to go out on a limb here and suggest that this will not happen at all and there will likely be a series of never ending extensions just like this one, but if it does happen then the effect will be quite large and result in the exit of every company working in the sector from inside Thailand.

They still haven't given clarity on stablecoins. 

I.e you have a stablecoin over a year (tax year) you liquidated into THB at a loss (fees, currency value etc) and withdraw.

 

 

[Titan1962]

Read the article and still confused,but that’s Thailand.

The VAT I think they are talking about is the tax the exchange will need to apply to a sale of a crypto currency. This was suspended after backlash from I suppose most of the crypto exchanges here in Thailand as their exchanges wouldn’t be set up for that type of procedure. 
Plus I think the taxation office would probably want that VAT directly deposited into the government coffers. As far as I am aware anything over 150,000 Thai baht in actual profit from the sale of crypto must be declared as income and will be taxed at the correct rate. 
They tax office also recommends lodging a return if your gains go over 70,000 baht,even though your not going to liable for tax until it goes over 150,000 baht.

The reason I think they are trying to implement this VAT,hardly anyone is doing their tax returns,most Thais have no idea on how to lodge a return. Plus if your a foreigner and can’t read,speak,or write Thai how are you supposed to understand the documentation that you need to fill in for a tax lodgement. You will need to get a tax agent that understands crypto tax in Thailand to do that for you,not cheap. So the VAT tax would be a better option in the long run for the government and for most people,pay as you go tax. 
I see a certain exchange here in Thailand is constantly upgrading its website,maybe to accommodate these new incoming requirements. 
But they really need to get their <deleted> together and get something sorted regarding the tax situation here,it’s a joke. They are screaming out for money to top up the government coffers,so just make things simple. Bring in the VAT and that’s done,if you sell at a loss that’s your loss not there’s.