The tax authority of Thailand has announced that it will waive the 7% value added tax for individual cryptocurrency investors. From Monday, the country began to regulate the digital currency and the initial placement of the tokens that are now administered by the Commission on securities and exchange Commission of Thailand (SEC).
On Monday enacted a decree about the legal regulation of cryptocurrency IPOs tokens (ICO) in Thailand. Cryptocurrency transactions are currently subject to income tax for private companies and individual investors, said the Nation Multimedia. Sarah Thongprasom (Saroch Thongpracum), Director of legal Affairs Tax management in the country, announced at a press conference on Tuesday:
«The IRS will waive the value added tax for entities that trade crypto-currencies on the foreign exchange markets, approved by the Commission on securities and stock exchanges».
However, Sarah stressed that «traders will still have to pay 15% tax on capital gains, also known as a tax on sources of income, or profit received as a result of trading».
Exemption from VAT for certain cryptocurrency traders aimed at «reducing their tax burden,» according to the publication. In addition, the IRS «will issue a resolution on refusal from 7% VAT for individual investors.» The article also States:
«Under the new law, the private company that runs the ICO must pay corporate income tax on the money they collected in the framework of the campaign».
According to the decree, the Thai SEC is the primary regulator of digital assets. Under the regulation fall within three groups of cryptooperation: brokers, dealers and ICO platforms. By words a press-the Secretary of the Department, these companies must obtain a license from the Ministry of Finance.
The SEC Chairman said that the Commission plans to publish the full rules for the regulation of cryptocurrencies and the ICO by the end of June after public hearings. «Public hearings will take 2-3 weeks because of investments in digital tokens are complex and involve greater risks», — said the Chairman of the SEC, RAPI Sucharitakul (Rapee Sucharitakul) in an interview with the Bangkok Post. Up to this point the country has banned the holding of ICO.
In addition, the RAPI said:
«The new regulation aims to protect ordinary investors because only investors with knowledge about the release of ICO or transactions with the company’s digital assets, should have the opportunity to participate in such trade.»
Meanwhile, the Bank of Thailand said he would wait for more information from the SEC before taking any action, said in an interview with the assistant President of the Bank of Canteven Sucharitakul (Chantavarn Sucharitakul). Previously, the Central Bank asked
financial institutions in the country to refrain from cryptocurrency transactions.
Thai authorities have already not the first month studying the cryptocurrency industry. In January of this year, the government allowed
futures trading for bitcoin. Despite this, the Commission on securities and stock exchanges of Thailand continues to warn investors about the high risks in this area and urged caution.