Thailand Offers Crypto Tax Break to Promote Investment Tokens
Thailand approved a crypto tax break for individuals holding investment tokens on March 13 to encourage the use of these tokens for fundraising purposes.
Capital gains from such holdings are now exempt from personal income tax calculations, even if a 15% withholding tax was previously applied.
According to reports from the Bangkok Post on March 13, Thailand’s cabinet endorsed the crypto tax break, allowing individuals profiting from holding investment tokens to exclude this income from personal income tax calculations, provided a 15% withholding tax has been deducted.
Kulaya Tantitemit, Director-General of Thailand’s Revenue Department, emphasized that the tax measures, effective since January 1, are designed to foster fundraising through investment tokens and position the country as an investment hub. The initiative is anticipated to stimulate economic growth, bolstering investment and employment opportunities in the region.
However, the approved crypto tax break will apply solely to individuals refraining from seeking full or partial refunds of the deducted tax or claiming a deducted tax credit. In addition to individual investors, the Thai government has extended tax incentives to investment token issuers. Corporate income tax and value-added tax (VAT) for these issuers have been waived, as announced on March 7.
Deputy Government Spokesman Rachada Dhnadirek highlighted that this move provides firms with an alternative fundraising avenue, complementing traditional methods. The government anticipates that investment tokens will inject approximately $3.7 billion into the economy over the next two years.
The Thai Revenue Department’s efforts to tighten oversight and impose taxation on cryptocurrency trading have
