Cryptocurrency Information Bureau News: Thailand promotes cryptocurrency investment with 5-year tax incentives! Bitcoin trading becomes even more active! #Thailandcryptocurrency #Bitcointax #Cryptocurrencyinvestment
Video explanation
Taxes on cryptocurrencies will be reduced for 5 years in Thailand! We will explain it in an easy-to-understand way even for beginners!
Hello everyone! I'm John, your local blockchain guy!
Recently, we received some exciting news from Thailand, the land of smiles, that may have some impact on our financial situation.Taxes on profits from virtual currencies (digital money exchanged over the internet; Bitcoin is one of the most famous examples!) may be waived under certain conditions for the next five years." He said!
For those of you who think, "Virtual currency seems complicated..." or "I'm not good at talking about taxes...", don't worry! In today's blog, I'll pick up this Thai news and explain it in an easy-to-understand way, as if I were chatting with the guy next to me. I'll try to replace technical terms with simpler terms as much as possible and use analogies, so please relax and read on.
🇹🇭 What's happening in Thailand? A rundown of the big news
Well, the main point of this news can be summed up in one word…
The Thai government said,For a period of five years from January 2025, 1 to December 1, 2029, there will be a tax exemption on profits (called capital gains) earned from cryptocurrency transactions conducted through licensed exchanges in Thailand!" This was announced by Julapun Amornvivat, Deputy Minister of Finance of Thailand, and it seems to be a nationwide initiative.
This is huge news, especially for those who live in Thailand and trade cryptocurrencies! But for everyone else, it may be a bit of a harbinger of the future.
🤔What does it mean to "not pay tax on profits"?
First, let's consider the part about "profits not being taxed" using a more familiar example.
For example, let's say you buy limited edition goods of an idol you support for 1 yen. After that, the popularity of the goods skyrockets! Someone appears who really wants it, so you decide to sell it to them for 1 yen. In this case, the difference between the original 5 yen and the 1 yen you sold is,5 yen is your "profit"Something similar happens in the world of virtual currency. When you buy virtual currency cheaply and it goes up in value, the difference between the two is your profit (technically speaking,Capital gain(This is called "the same thing").
In our everyday lives, just as we pay income tax when we receive a salary, we may have to pay taxes to the government on the "profits" we make from these investments. However, the Thai government has now declared that "profits made from buying and selling virtual currencies in Thailand using safe exchanges approved by the government will not be taxed.""Tax-free"This means that you are exempt from taxes, meaning you don't have to pay them. It's like a limited-time "tax discount campaign"!
💡 Why is Thailand being so generous? What is its aim?
You may be wondering, "But why is the Thai government so generous in exempting taxes?" In fact, there seem to be several big aims behind this.
- 🌍We want to attract investment from both within and outside of Japan!
If the tax is abolished, more people, not only in Thailand but all over the world, may start thinking, "I wonder if I should try investing in virtual currency in Thailand?"Investment (putting money into a company or business in the hope of making more money in the future)When the economy becomes more active, money will circulate more easily throughout the Thai economy. We can also expect new businesses to be born and more jobs to be created. - 💰 I want to revitalize the entire economy!
When many people start investing, a lot of money flows into the market. The more money flows, the moreEconomic activity (people spending money and buying and selling goods and services in general)This is similar to how good blood circulation in our bodies makes us healthy. - 🚀 We want to become a leader in Asia in future technology!
Virtual currency and the backgroundBlockchain (a new technology that safely records and manages information across many computers, like a "digital chain")It is believed around the world that this will be extremely important for society and the economy of the future. Thailand may have a strong desire not to miss out on this new technology wave, but rather to become a leader in this field in Asia.
In this way, the Thai government is hoping to use this tax exemption as an opportunity to significantly grow the country's economy as a whole.
📝 What are the details of this "tax holiday" rule?
This very attractive "tax holiday" period has some important points you should know.
- When does the period start and end?
This rule applies to:Starting January 2025, 1 and running until December 1, 2029What?5 yearsThis is quite a long-term support. It shows the Thai government's intention to develop the market steadily. - What transactions are covered?
This tax exemption applies to profits (capital gains) earned from trading virtual currencies. - What is the most important condition?
In order to receive this tax benefit, there is one very important rule."An exchange officially recognized by the Thai government (the technical term for this is an 'authorized digital asset platform'. Simply put, it is a company or service that the Thai government has given its stamp of approval to as 'this is a safe place to trade virtual currencies.'")This means that transactions must be made through a government-approved store. This may be similar to the idea that you should shop at a reliable store that is approved by the government, not at a store on the street that you don't know much about. However, it is important to be careful because not just any store will do.
The requirement to use an "approved exchange" is a reassuring factor for us users. It also shows a sense of responsibility on the part of the country to eliminate suspicious businesses and create an environment in which investors can trade with peace of mind.
🇯🇵 Does this apply to us in Japan?
Some of you may be thinking, "Oh, so it's a story about Thailand. It doesn't really have much to do with us living in Japan, does it?"
Indeed, the people who directly benefit from this tax incentive are primarily individual investors who pay taxes in Thailand.
However, these news articles are very useful for learning how new technologies such as virtual currencies and blockchains are beginning to be used in society around the world. When a country shows a positive attitude toward new technology, other countries may be influenced and think, "Well, maybe our country should come up with some new rules, too?" In this way, new technologies gradually become integrated into our lives.
Also, for those who are thinking about living abroad or investing in overseas markets in the future, it is important information to know about the tax trends in each country. The world is becoming more and more connected, after all!
A word from ٬ون
Thailand's latest move shows a strong desire to proactively adopt new technology and boost the economy. In particular, the long-term tax exemption for five years shows how serious the Thai government is about this. Personally, I hope that Japan can learn from these advanced examples from overseas and become even more flexible and future-oriented in its response!
This article is based on the following original articles and is summarized from the author's perspective:
Thailand Approves Five Year Bitcoin And Crypto Tax
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