Belaws Home ›› Thailand ›› Blog ›› Thailand’s Tax Breaks for Investment Tokens
cyrpto
Thailand’s Tax Breaks for Investment Tokens
28/05/2024
Thailand has taken significant steps to promote fundraising through investment tokens by introducing tax breaks for individuals and issuers. These measures aim to position the country as an investment hub and stimulate economic growth.
In this article, we will explore the details of Thailand’s tax ruling for tokens and its implications for the crypto industry.
Key points
- Investment tokens, built on blockchain technology, offer fractional ownership, increased liquidity, and transparency, providing advantages over traditional investment methods.
- Thailand’s cabinet approved tax breaks for individual investment token holders, allowing them to exclude gains from investment tokens from personal income tax calculations, effectively eliminating double taxation.
- Tax incentives have also been granted to investment token issuers, with waivers on corporate income tax and value-added tax (VAT).
- These tax breaks align with Thailand’s vision of becoming an investment hub in the region, fostering economic growth, creating employment opportunities, and diversifying the investment landscape.
What are Investment Tokens?
Investment tokens are digital units built on blockchain technology that represent ownership or rights in an underlying asset or project. They essentially function as a new way to invest and offer several advantages over traditional methods:
Fractional Ownership
Investment tokens allow for the division of assets (like real estate or shares) into smaller, more affordable units. This opens up investment opportunities to a wider range of individuals.
Increased Liquidity
Blockchain facilitates easier trading of investment tokens compared to traditional assets, potentially making them more liquid.
Transparency
Transactions involving investment tokens are recorded on the blockchain, providing greater transparency and traceability.
What are the Tax Breaks for Individual Investment Token Holders?
In early March 2024, Thailand’s cabinet approved tax breaks for individuals holding investment tokens. Under this ruling, individuals who have had a 15% withholding tax deducted from their investment token gains can exclude these profits from their personal income tax calculations. This exemption effectively eliminates the issue of double taxation.
Kulaya Tantitemit, the Director-General of Thailand’s Revenue Department, emphasized the significance of investment tokens for fundraising purposes and recognized them as an alternative tool for business operators in the country.
These tax breaks provide individuals with a tax-efficient way to participate in investment token activities.
What are Tax Breaks for Investment Token Issuers?
In addition to individuals, Thailand’s 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, 2024. This move aims to provide firms with an alternative fundraising avenue, complementing traditional methods.
Deputy Government Spokesman Rachada Dhnadirek highlighted the government’s expectations of investment tokens injecting approximately $3.7 billion into the economy over the next two years. These tax breaks for both individuals and issuers are part of Thailand’s broader efforts to foster a crypto-friendly environment and attract investments.
Thailand’s Vision as an Investment Hub
Thailand’s recent tax breaks for investment tokens align with its broader vision of becoming an investment hub in the region. The government’s aim is to position Thailand as an attractive destination for both local and international investors, fostering economic growth and creating employment opportunities.
By promoting fundraising through investment tokens, Thailand aims to diversify its investment landscape and provide businesses with alternative avenues to raise capital. The tax breaks for individuals and issuers are part of a comprehensive strategy to stimulate economic activity and attract investments in the country.
What are the Implications for Crypto in Thailand?
Thailand’s tax breaks for investment tokens are expected to have several positive implications for the crypto industry and the overall economy. By providing tax incentives, the government encourages individuals and businesses to participate in the crypto market, contributing to its growth and development.
The tax breaks create a more favourable environment for crypto fundraising, making investment tokens an attractive option for businesses seeking capital. The anticipated injection of $3.7 billion into the economy over the next two years reflects the government’s optimism regarding the potential impact of investment tokens on economic growth.
How can Belaws help?
For more information about crypto and blockchain in Thailand, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
USD 150
Up to 1 hour
Online payment (Paypal or Credit card)
Legal consultation can be conducted in English, French or Thai
Legal consultations are handled by experienced lawyers from the relevant fields of practice
Frequently asked questions
What are investment tokens?
Investment tokens are digital units built on blockchain technology that represent ownership or rights in an underlying asset or project. They offer several advantages over traditional investment methods, including:
- Fractional Ownership: Allows dividing assets into smaller, more affordable units.
- ncreased Liquidity: Blockchain facilitates easier trading compared to traditional assets.
- Transparency: Transactions are recorded on the blockchain for greater transparency.
What are the tax breaks for investment token issuers in Thailand?
Investment token issuers are exempt from corporate income tax and value-added tax (VAT). This aims to provide alternative fundraising avenues for businesses.
What are Thailand’s goals with these tax breaks?
- Become an investment hub in the region.
- Attract local and international investors.
- Foster economic growth.
- Create employment opportunities.
- Diversify the investment landscape.
- Stimulate economic activity.
What are the implications for the crypto industry in Thailand?
- Creates a more favorable environment for crypto investment and fundraising.
- Makes investment tokens an attractive option for businesses seeking capital.
- Encourages growth and development of the crypto market.
- May inject $3.7 billion into the Thai economy over the next two years.
Related articles
Decreased Tax Rates for Foreign Professionals
29/06/2022
In May 2022, the Royal Decree No. 743 B.E. 2565 (2022) issued under the Revenue Code announced decreased tax rates for foreign professionals.
In May 2022, the Royal Decree No. 743 B.E. 2565 (2022) issued under the Revenue Code announced decreased tax rates for foreign professionals.
Thailand to work with the OECD to tackle international tax avoidance
30/06/2022
As part of their responsibilities as a signatory the OECDs project to tackle international tax avoidance, Thailand has ratified the MLI.
As part of their responsibilities as a signatory the OECDs project to tackle international tax avoidance, Thailand has ratified the MLI.
Income tax exemptions on offer for investment in target companies
01/09/2022
Income Tax exemptions have been made available to those who invest in targeted industries and companies.
Income Tax exemptions have been made available to those who invest in targeted industries and companies.
Subscribe today
Subscribe today
To our newsletter for all the latest legal news
in South East Asia, Belaws updates and
special promotions on our services.
To our newsletter today for all the latest legal news in South East Asia,
Belaws updates and special promotions on our services.
Belaws 2017 - 2025.
Belaws provides information and software only. Belaws is not a "lawyer referral service" and does not provide legal service or participate in any legal representation.
Belaws is not a law firm or a substitute for an attorney or a law firm. The use of Belaws is subject to our Terms of Use.
