The Thai government has given its approval for tax incentives to be provided to individuals who hold investment tokens, in order to encourage the use of tokens for fundraising purposes.
According to a report by the Bangkok Post on March 13, the cabinet of Thailand has agreed to grant tax breaks to individuals who hold investment tokens. Kulaya Tantitemit, the Director-General of Thailand’s Revenue Department, stated that individuals who earn profits from holding investment tokens and have a 15% withholding tax deducted can exclude this income when calculating their personal income tax.
Tantitemit explained that the tax measures, which came into effect on January 1, are aimed at promoting fundraising using investment tokens and positioning the country as an investment center. The government official believes that this move will have a positive impact on investment and employment in the region, thereby boosting the country’s economy.
However, it should be noted that the tax break will only apply to individuals who do not request a full or partial refund of the deducted tax or claim a deducted tax credit.
In addition to individuals, the Thai government has also introduced tax incentives for investment token issuers. On March 7, the government announced that corporate income tax and value-added tax (VAT) for investment token issuers will be waived.
Deputy Government Spokesman Rachada Dhnadirek clarified that this decision will provide firms with an alternative method of fundraising, such as investment tokens, in addition to traditional methods. The government expects investment tokens to generate approximately $3.7 billion in capital over the next two years.
In related news, the Securities and Exchange Commission of Thailand has opened the doors to US spot Bitcoin exchange-traded funds (ETFs) for accredited investors.
The regulation of crypto taxation in Thailand has faced challenges. In January 2022, the country implemented a 15% capital gains tax for crypto traders operating within its borders. At the time, the government urged investors to declare and report their crypto income in tax filings to avoid penalties.
However, the introduction of the capital gains tax was met with strong opposition from the public. As a result, on February 1, 2022, Thailand decided to suspend the implementation of the 15% capital gains tax due to the backlash from traders.
The country later relaxed its tax regulations and revised its tax policy to allow exemptions. On March 8, 2022, Thailand introduced a new tax policy that exempts traders on authorized exchanges from a 7% VAT on crypto transactions.
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