What are Thailand's new tax benefits for crypto firms & users?

In recent developments, Thailand has unveiled a series of new tax benefits for cryptocurrency firms and users, signaling a significant shift in its regulatory stance towards digital assets. The most notable among these is the permanent exemption of value-added tax (VAT) on profits earned through trading cryptocurrencies and digital tokens. This exemption, which takes effect from January 1, 2024, and has no expiry date, is intended to attract more digital asset businesses and investments to the country and bolster its ambitions to become a digital asset hub in Asia. Furthermore, the scope of the VAT exemption has been broadened to include not just authorized digital asset exchanges but also brokers and dealers regulated by the Thai Securities and Exchange Commission (SEC). This means that a wider range of crypto-related transactions will now be exempt from the 7% VAT, further reducing the tax burden on these businesses and investors. Moreover, the Thai government has also implemented measures to encourage crypto investment through the tax code. Specifically, holders of investment tokens with a 15% capital gains tax exemption are allowed to exclude these profits from their taxable income, preventing double taxation. This, in addition to the VAT exemption, aims to incentivize the use of digital assets as an alternative funding channel. In summary, Thailand's new tax benefits for crypto firms and users are designed to foster growth in its digital asset industry and promote its status as a regional hub for digital finance. The VAT exemption, coupled with other favorable tax provisions, creates a favorable environment for crypto businesses and investors alike.