Thailand Approves Tax Exemption for Crypto Earnings to Boost Investment Tokens

THAI FLAG AND CRYPTO TOKENS

Thailand’s cabinet approved a tax exemption for crypto earnings to promote fundraising through investment tokens, aiming to enhance the country’s competitiveness as a fundraising hub. The measure allows income earners to exclude profits from investment tokens from their personal income tax calculations, starting January 1, 2024. The move is expected to stimulate investment, employment, and economic growth in Thailand, with predictions of up to 18.5 billion baht in fundraising using investment tokens in 2024.

Tax Exemption for Crypto Earnings

Thailand’s cabinet on Tuesday approved a tax exemption for crypto earnings to encourage fundraising via investment tokens. The government “recognizes the importance of digital tokens for investment, which will be another tool for raising funds for business operators in the country.”

EfinanceThai reports that the Cabinet has approved that the share of profit or any other benefits received from the Investment Token that has already been withheld does not need to be included in the calculation of personal income tax, starting January 1, 2024. The Thai SEC expects that this year there will be fund raisings with Investment Token up to 18.5 billion baht.

Promoting Fund Raisng Via Tokens

“Today (March 12, 2024), the Cabinet approved tax measures to promote fundraising with digital tokens for investment (Investment Token) in order to increase Thailand’s competitiveness in becoming a fundraising center by the Office of the Securities and Exchange Commission,” stated Dr. Kulaya Tantitemit, Director-General of the Revenue Department.

She revealed that “The Ministry of Finance through the Revenue Department recognizes the importance of digital tokens for investment (Investment Token), which will be another tool for raising funds for business operators in the country. Therefore, a draft Royal Decree was proposed to be issued in accordance with the Revenue Code.”

Enchancing Thailand’s Competitiveness

The measure allows income earners who receive a share of profits or any other benefits from holding digital tokens for investment to choose not to include them in calculating personal income tax, provided the payer has already deducted withholding tax. This applies to profits or benefits received from January 1, 2024, onwards.

“This measure will increase Thailand’s competitiveness in being a fundraising center and giving business operators in Thailand a choice to raise funds with Investment Token in addition to raising funds with traditional tools,” added the Director-General.

A Boost for the National Economy

The Thai SEC Office predicts that in 2024 there will be up to 18,500 million baht in fundraising using Investment Tokens, which will be used as investment in the national economy.

For further information, individuals can inquire at every Revenue Office nationwide or the Revenue Information Center (RD Intelligence Center) at 1161.

Author: Candace

Candace loves the arts. She holds some bitcoins.