Key Takeaways
- Thailand introduces tax breaks for investment token holders to exclude certain earnings from personal income tax, effective January 1.
- The Thai government also offers tax exemptions to corporations issuing investment tokens, aiming to encourage alternative fundraising methods.
- These measures are part of Thailand's strategy to boost its economy by promoting investment and establishing itself as a key investment hub in the region.
According to a recent Revenue Department announcement, as the Bangkok Post reported, Thailand has introduced tax reliefs for investment token holders.
Starting January 1, 2024, individuals who profit from their investment token holdings and have had a 15% withholding tax deducted can now exclude this income from their personal income tax calculations.
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This tax measure facilitates and promotes investment token-based fundraising, highlighting Thailand's commitment to fostering innovation and growth within its digital economy.
However, it applies exclusively to individuals who do not seek any refund or tax credit for the deducted withholding tax.
Kulaya Tantitemit, the Director-General of the Revenue Department, emphasized that these measures are part of a broader strategy to enhance Thailand's attractiveness as an investment destination, with potential positive impacts on employment and overall economic vitality.
The Thai government has also implemented tax relief measures for companies issuing investment tokens. These measures include exemptions from corporate income tax and value-added tax (VAT), offering businesses a new avenue for raising funds through digital tokens.
Deputy Government Spokesman Rachada Dhnadirek highlighted the government's anticipation that investment tokens could mobilize approximately $3.7 billion in capital within the next two years, underscoring the significant role these digital assets could play in Thailand's economic landscape.
By offering these incentives, the Thai government aims to unlock new potentials in fundraising, investment, and economic growth, paving the way for a more dynamic and innovative financial ecosystem.
In September 2023, Chainalysis recognized Thailand as one of the nations with the most enthusiasm for crypto, particularly among the lower-middle-income countries.
