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

The Thai government has taken a significant step towards encouraging the use of investment tokens by granting tax breaks to individuals holding such tokens for investment purposes. According to a report by the Bangkok Post on March 13, Thailand's cabinet approved these tax breaks, allowing individuals profiting from investment tokens to exclude the 15% withholding tax deducted when calculating their personal income tax.

Kulaya Tantitemit, the Director-General of Thailand's Revenue Department, stated that the tax measures, effective from January 1, are intended to boost fundraising through investment tokens and position Thailand as an investment hub. Tantitemit believes this move will positively impact the economy by stimulating investment and employment in the region. However, the tax break will only apply to individuals who do not seek refunds of the deducted tax or claim a tax credit.

In addition to individuals, the Thai government also announced tax breaks for investment token issuers on March 7, waiving corporate income tax and value-added tax (VAT) for them. Deputy Government Spokesman Rachada Dhnadirek explained that this initiative aims to provide firms with an alternative fundraising avenue, complementing traditional methods. The government anticipates that investment tokens will generate approximately $3.7 billion in capital over the next two years.

Thailand's approach to crypto taxation has faced challenges and revisions. In January 2022, the country introduced a 15% capital gains tax on crypto traders, urging investors to report their crypto income in tax declarations to avoid penalties. However, this decision sparked public outcry, leading to the suspension of the capital gains tax implementation on February 1, 2022.

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

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