Thailand Exempts 7% VAT for Crypto Transactions from 1 April 2022 to 31 December 2023

Thailand has issued a royal decree formally introducing an exemption from the country's 7 percent VAT until end-2023, for transfers of cryptocurrencies through authorised crypto exchanges.

The Cabinet had approved the measure in March to help promote and develop the crypto industry. The decree enforces the exemption retroactively from 1 April 2022, keeping it in place until 31 December 2023.

Finance Minister Arkom Termpittayapaisit said the tax exemption would make crypto exchanges in Thailand more reliable and stable, and promote the country's readiness for the "future digital economy".

Revenue Department director-general Ekniti Nititthanprapassaid the exemption will make transacting in crypto in Thailand more convenient, more tax, and improve the country's image internationally.

The tax exemption also covers trading of retail CBDC issued by the BOT (Bank of Thailand). In December, the BOT said it is planning to start testing retail CBDC transactions between financial institutions and users in late 2022.

More recently, BOT governor Sethaput Suthiwartnarueput reportedly said the central bank is satisfied with how Thailand's existing payment systems function, adding that the need to roll out a CBDC is "not that high".

Source: Regulation Asia