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Thailand To Waive VAT For People Trading In Cryptocurrencies

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Thailand government has decided to waive the 7 percent value-added tax (VAT) for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC).

Saroch Thongpracum, the Revenue Department's director of legal affairs, announced this a day after a new law governing cryptocurrency transactions and initial coin offerings (ICOs) in Thailand came into force.

Although individuals are exempted from VAT, they will still have to pay a 15 percent capital gains tax, also known as a withholding tax, on income earned in a transaction, Saroch said at a press conference.

VAT and capital gains tax were introduced last month to prevent the country's nascent cryptocurrency market from being used for money laundering, tax evasion, and other criminal activities.

Both private companies as well as individual investors in the South East Asian country are supposed to pay income tax for Cryptocurrency transactions.

Saroch told reporters that the Revenue Department would later revise tax regulations for private firms trading in cryptocurrencies.

Thailand's Nation Multimedia reported that Thai Securities and Exchange Commission (SEC) is expected to issue regulations in June regarding fundraising through initial coin offerings. The government has also revised the country's tax code including crypto taxation.

Thailand's crypto-based businesses are facing the pressure of government crackdown. Entrepreneurs launching new companies are reportedly trying to register their startups in more investment-friendly Singapore to raise capital through initial coin offerings (ICOs).

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