Govt to waive VAT on personal cryptocurrency earnings
The Revenue Department will waive value-added tax for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC).
A new law governing cryptocurrency transactions came into force yesterday (May 14).
Saroch Thongpracum, the department’s director of legal affairs, said on Tuesday it would issue a regulation waiving the 7-per cent VAT for individual investors to reduce their tax burden.
Cryptocurrency transactions are currently subject to income tax for both private companies and individual investors.
Individuals will still have to pay a 15-per-cent capital gains tax, also known as a withholding tax, on income earned in a transaction.
Saroch said the department would later revise tax regulations for private firms trading in cryptocurrencies.
The SEC is meanwhile expected to issue regulations next month related to raising capital via initial coin offerings.