Thailand’s government greenlights tax breaks for profits from cryptocurrency investment tokens to promote fundraising via these digital assets. Multiple local news outlets reported this development on Tuesday.
According to a report, the exemption allows holders of investment tokens who have had the 15% capital gains tax withheld to exclude these profits when calculating their income tax. This move effectively prevents a scenario of double taxation on such earnings.
Kulaya Tantitemit, director-general of Thailand’s Revenue Department, urged the importance of investment tokens as a tool for businesses to raise funds. “The Ministry of Finance through the Revenue Department recognizes the importance of digital tokens for investment, which will be another tool for raising funds for business operators in the country,” Tantitemit reportedly stated.
Thailand has recently introduced a series of tax benefits for crypto firms and users. These include a value-added tax (VAT) exemption for earnings until 2023 and a $1 billion tax benefit for firms issuing investment tokens.
The new exemptions will start to apply to investment token earnings on January 1, 2024. This policy was implemented by the Thai government in order to construct a friendly ecosystem for the crypto industry and raise capital from investors through digital assets.
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