FameEX Hot Topics | Thailand Approves Exemption from Personal Income Tax on Token Earnings

In a bid to promote the use of investment tokens, the Thai government has approved tax incentives for individuals holding such tokens for investment purposes. As reported by the Bangkok Post on March 13, Thailand's cabinet sanctioned these tax breaks, allowing individuals profiting from investment tokens to exclude the 15% withholding tax deducted when calculating personal income tax.

Kulaya Tantitemit, Director-General of Thailand's Revenue Department, emphasized that these tax measures, effective from January 1, aim to stimulate fundraising through investment tokens and position Thailand as a prime investment destination. Tantitemit is optimistic about the economic impact, foreseeing increased investment and job opportunities in the region. However, the tax benefits will be granted solely to individuals refraining from seeking refunds or tax credits for the deducted tax.

In addition to individuals, the Thai government announced tax incentives for investment token issuers on March 7, exempting them from corporate income tax and value-added tax (VAT). Deputy Government Spokesman Rachada Dhnadirek explained that this move seeks to offer companies an alternative fundraising avenue, complementing traditional methods. The government projects that investment tokens will attract approximately $3.7 billion in capital over the next two years.

Thailand's crypto taxation approach has encountered hurdles and adjustments. Initially, in January 2022, the country introduced a 15% capital gains tax on crypto traders, urging them to report crypto income in tax declarations to avoid penalties. However, public backlash led to the suspension of the capital gains tax implementation on February 1, 2022.

Subsequently, Thailand revised its tax policy, introducing exemptions for traders on authorized exchanges from a 7% VAT on crypto on March 8, 2022. These regulatory changes reflect the government's endeavor to navigate the complexities of crypto taxation while fostering an environment conducive to investment and innovation in the digital asset domain.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.