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In a notable development on February 6, 2024, the Cabinet announced its resolution to extend tax relief measures for digital asset trading, providing a lifeline for individuals and juristic entities involved in the realm of cryptocurrencies (“Cryptos”) and utility tokens. The Value Added Tax (VAT) exemption for transfers of Cryptos and utility tokens has been extended from December 2023 to January 1, 2024, onwards. 

“Cryptocurrency” means an electronic data unit built on an electronic system or network created for the purpose of being a medium of exchange for the acquisition of goods, services, or other rights, including the exchange between Digital Assets. “Digital Tokens” consist of: 

  • “Investment Token” means an electronic data unit created on an electronic system or network which is issued for the purpose of specifying the right of a person to participate in an investment in any project or business. 
  • “Utility Tokens” means an electronic data unit created on an electronic system or network which is issued for the purpose of specifying the right of a person to acquire specific goods, specific service, or any specific other right under an agreement between the issuer and the holder, and shall include any other electronic data units of right as specified in the notification of the Securities and Exchange Commission. 

VAT exemption for individuals and juristic entities on Transfers of Cryptos and Utility Tokens: 

  1. Transfer Crypto or Utility Tokens traded on the Digital Asset Exchange under the Digital Assets Business Law 
  1. Transfer Cryptos or Utility Tokens traded through Digital Asset brokers under the Digital Assets Business Law 
  1. Transfer Cryptos or Utility Tokens to Digital Asset Dealers (“Buyers”) under the Digital Assets Business Law 
  1. Transfer Cryptos or Utility Tokens by Digital Asset Dealers (“Sellers”) under the Digital Assets Business Law. 

The Cabinet’s decision to extend tax relief measures for Cryptos and Utility Token trading signifies a strategic move to bolster the burgeoning Digital Assets market. By providing VAT exemptions for a range of transactions, the government aims to stimulate growth, encourage innovation, and create a favorable environment for both individuals and juristic entities. 

It’s important to note that transfers of investment tokens in the primary market and secondary market have been exempt from VAT since May 14, 2018, under Royal Decree No. 779. 

As with all legal related matters, it is advised that you consult a professional legal advisor for expert opinion. Please reach out to us at law@ilct.co.th. 

Empowering the Future: Cabinet Extends Tax Relief Measures for Digital Assets Trading [please download]

WRITTEN BY

For further information, please contact:

Professor Jayavadh Bunnag – ILCT,
jayavadhb@ilct.co.th

Professor Jayavadh Bunnag – ILCT

Professor Jayavadh, a legal expert with over 50 years of experience in commercial and natural resources law, a Harvard graduate, accomplished arbitrator, and dedicated educator.

Professor Jayavadh has been practicing law more than 5 decades long. He began his career in law after graduating from a prestigious Thai university in 1969. Via his sheer dedication and commitment for law, he was granted a Fulbright Scholarship and obtained an LL.M from the renowned Harvard University in 1972. With the full knowledge of both local and international laws, Professor Jayavadh is conversant in the rapidly changing legal landscape of Thailand.

Professor Jayavadh is well-versed in all aspects of the commercial law practice, specializing in natural resources laws (minerals, oil & gas and energy) . He was Vice President of the Thai Mineral Industry Council for many years and still serves as its Honorary Legal Advisor. He also acts as an arbitrator and counsel in both domestic and international arbitrations. He was the first Thai to become a Fellow of the Chartered Institute of Arbitrators (CIArb) and a Chartered Arbitrator and chaired its Thailand Branch for many years.

Despite his busy professional schedule, Professor Jayavadh teaches at many Thai universities and is still involved in assisting them in their academic activities.  In recognition of his academic contribution to Thammasat University, he received royal appointment as its Adjunct Professor of Commercial Law.   He is on the Committee of the Council of State to Revise Laws on Business Organizations.

Member, Committee to Revise Laws on Business Organizations, Council of State; President; International Law Association of Thailand; Chairman, The Chartered Institute of Arbitrators Association (Thailand), Past President, German-Thai Chamber of Commerce (1987-1988). Past Vice President, Thai Mining Industry Council.

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