The State of Thailand has approached the completion of the regulatory framework for taxation of digital currencies.
According to a report by Nikkei Asia, investors in Thailand’s digital currency are expected to face 7% VAT on all deals and 15% on capital gains.
This comes in the role of the Thai government in the regulation of the market, following two royal decrees passed by the Council of Ministers of Thailand, which is the executive branch of the country.
One of the two drafts specifically concerned the consideration of the regulation of taxation on the digital currency in order to prevent its use in money-laundering and tax evasion.
According to local media in Thailand, the cabinet on Tuesday approved the new framework for regulating taxes.
Under this framework, digital currency investors are eligible to waive VAT if they trade through an exchange of coded currency after the law enters into force, they will still face liability if they do not have capital gains from the demo trading.
The report also said that the bill is now awaiting publication by the Royal newspaper, and will then be officially enacted.
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