The Thai government has given the green light to tax breaks for individuals who hold investment tokens, in a bid to encourage the use of tokens for fundraising purposes. According to the Bangkok Post, Thailand’s cabinet approved the tax breaks, which allow individuals to exclude income from investment tokens when calculating their personal income tax, if they have already had a 15% withholding tax deducted. The Director-General of Thailand’s Revenue Department, Kulaya Tantitemit, stated that these tax measures, effective from January 1, are aimed at promoting fundraising through investment tokens and positioning Thailand as an investment hub. It is believed that this move will have a positive impact on the country’s economy by boosting investment and employment in the region. However, it should be noted that the tax break will only apply to individuals who do not request refunds or claim a deducted tax credit. In addition to individuals, the Thai government has also introduced tax breaks for investment token issuers. Corporate income tax and value-added tax (VAT) for investment token issuers have been waived, allowing firms to access alternative fundraising methods such as investment tokens alongside traditional options. The government anticipates that investment tokens will generate approximately $3.7 billion in capital over the next two years. This move comes after a series of changes to Thailand’s crypto tax regulations. In January 2022, the country introduced a 15% capital gains tax for crypto traders, but due to public opposition, the implementation was suspended on February 1. A month later, the tax policy was revised to provide exemptions, and on March 8, a new tax policy exempted traders on authorized exchanges from a 7% VAT on crypto.
Token earnings in Thailand now eligible for personal income tax exemption