Thai users will be exempt from VAT when transferring electronic money until 2024

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2022-05-29 03:36:10

Recently, the Government of Thailand has issued a decree exempting value added tax (VAT) for electronic money transfers until December 31, 2023.

Thai users will be exempt from VAT when transferring electronic money until 2024

According to Bangkok Post, investors will be exempt from payments value added tax (VAT) 7% on government-approved exchanges. This new ordinance is intended to complement the March 2022 ruling on the exemption of VAT in transactions of Crypto and other electronic assets. These tax exemption rulings will also expire at the end of May 2023.

According to another decision issued on May 24th, investors will be exempt from VAT on Central Bank Digital Currency (CBDC) transfers issued by the Thai government.

In December 2021, the Central Bank announced it would begin testing CBDCs by the end of 2022 with transactions between financial institutions and users as an alternative means of payment.

These ordinances are designed to encourage investors to trade in cryptocurrencies on exchanges authorized by the government; and at the same time help the Securities and Exchange Commission of Thailand (SEC) manage and supervise the activities of the Crypto industry more easily and effectively.

Thai Finance Minister Arkom Termpittayapaisit expressed his confidence that the tax easing regulations will make cryptocurrency exchanges in Thailand more convenient and reliable. He shared:

“The easing of taxes on crypto exchanges will encourage Thailand to have a future e-economy ready infrastructure and payment system.”

In recent years, investors in Thailand have paid special attention to cryptocurrencies, so this field is quite developed in this country. The Thai government was met with fierce criticism when it planned to introduce a 15% tax on electronic asset transactions, so the plan was pushed back.

At the end of March, in order to prevent economic and financial threats, the Thai government implemented measures to limit the use of cryptocurrencies for payments. The Thai Exchange (SEC) has introduced a ban on the use of Crypto as a means of payment, but will still allow the use of cryptocurrencies for investment purposes.

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