The Bank of Thailand (BoT) has relaxed its regulatory framework for cryptocurrencies by amending the country’s Revenue Code to exempt digital asset investors from paying a 15 percent withholding tax. According to local media, all domestic transactions involving cryptocurrencies will be exempt from the tax starting August 11.
Today, the Bank of Thailand announced it would abolish a 15% withholding tax on profits earned from cryptocurrency-related transactions and assets as part of new moves to ease regulatory hurdles faced by firms in the space, reported Coindesk on Monday.
This amendment is part of broader efforts towards fintech innovation that were first initiated last year when Thailand introduced the first regulatory sandbox in ASEAN as well as offering startups exemptions from taxes and duties and certain other legal and business fees.
Thailand has officially removed the 15% withholding tax on cryptocurrency related transactions, reported Coindesk on Monday . Thai Rath daily reported that thanks to an amendment made by the Bank of Thailand (BoT), which relaxed its regulatory framework for cryptocurrencies, such transactions will no longer be levied a 15 percent withholding tax which was initially introduced in May 2014.
This amendment is part of broader efforts towards fintech innovation that were first initiated last year when Thailand introduced the first regulatory sandbox in ASEAN as well as offering startups exemptions from taxes and duties and certain other legal and business fees.
The Bank of Thailand (BoT) has relaxed its regulatory framework for cryptocurrencies by amending the country’s Revenue Code to exempt digital asset investors from paying a 15 percent withholding tax . According to local media, all domestic transactions involving cryptocurrencies will be exempt from the tax starting August 11.
The announcement came as part of broader efforts towards fintech innovation that were first initiated last year when Thailand introduced the first regulatory sandbox in ASEAN as well as offering startups exemptions from taxes and duties and certain other legal and business fees.
The new exemption overrules an earlier law that levied taxes exclusively on crypto-to-fiat conversions via two major exchanges in the region: BTC Vietnam and Coin Asset. Other transactions involving crypto assets were subject to a flat 7% value-added tax.
The Revenue Department clarified that the exemption does not apply to businesses dealing in cryptocurrency, which remain subject to corporate income taxes.
Thailand announces changes to its dealings with bitcoin by removing tax measures on digital currency investments issued earlier this year will no longer require taxpayers to pay a 15 percent withholding tax on their gains. This follows changes made earlier this year which exempted cryptocurrencies from the Foreign Exchange Act. As reported by Coindesk, effective Monday (July 16), Thai citizens are now exempt from the fiat-crypto taxation structure previously applied.
