Thailand is leaving no stone unturned to provide a legal framework for the digital currencies. At the moment the private companies and the individual investors have to pay income tax for the digital currency transactions. However, Thailand’s Revenue Department is all set to make some relaxations in this regard.
Thailand has decided to waive off about 7% of the tax for all the individual digital currency investors. This tax waive off is only applicable on the digital currency markets that is regulated by the Securities and the Exchange Commission. The main reason that the tax is being waived off is that the Thailand Financial Authorities want to reduce the burden on the individual investors and to help them excel in this respective niche.
What the investors need to keep in mind is that they still have to pay the withholding tax that is equivalent to about 15%. This tax needs to be paid on the earning which the trader makes through a transaction.
The tax has been waived off for yet another reason as well. The Thai authorities intend to provide a safe trading environment to the investors and encourage them to invest in this field. The truth is that this has been a positive move on the part of the Thai authorities and this step may play a crucial role to promote the digital currency sector.
At the same time it is important that the investors should make their investments wisely and develop a strong understanding about the current digital currency market trends. It can be assumed that if this tax waive off measure proves to be effective, then the Thai authorities may adopt some more measures in the near future to promote the digital currencies.
The new investors can also cash on this opportunity but ideally they should study the prevalent digital currency market trends in Thailand. This way they will not have to deal with any potential losses. Thailand is gradually developing into a potential hub for digital currency investments.
The Thai authorities should ensure that all the companies and the exchanges dealing in digital currency investments should maintain a level of transparency. The Thai exchanges should also try to improve their operations and adhere to the regulations that have been established by the authorities.
This way Thailand can lay down an ideal foundation for digital currency investments and there are probable chances for future development as well.