Cabinet okays easing levies on digital assets

The cabinet agreed to ease tax regimes on Tuesday for investments in digital assets in a move to promote the digital economy.

According to government spokesman Thanakorn Wangboonkongchana, the cabinet approved two royal decrees: one regarding the Finance Ministry to waive the 7% value-added tax (VAT) on cryptocurrency transactions and another about the Bank of Thailand to waive VAT on the transfer of digital currency to be issued by the Bank of Thailand as part of its test of Retail Central Bank Digital Currency.

The measures take effect one month after the cabinet’s approval or until Dec 31, 2023.

The cabinet also yesterday approved the Finance Ministry regulation that allows investors who trade in digital assets to only pay tax based on their net profit. They are allowed to deduct their losses before paying tax on the net profit. However, this methodology will…