HomeNEWSThailand exempts personal income tax on crypto gains

Thailand exempts personal income tax on crypto gains


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Holders of investment tokens in Thailand will now enjoy a new tax exemption. According to a report on Wednesday by a local media identified as the Bangkok Post, the Thai government has endorsed tax exemption for investors who made a profit from holding investment tokens. As revealed, the move came in an effort to encourage the use of virtual assets for fundraising efforts.

More so, the report quoted the Director-General of the Thailand Revenue Department, Kulaya Tantitemit on the issue. As disclosed, the Director-General stated that investors who made a gain from holding investment tokens and had a 15% withholding tax deducted will leave out the profit when summing their income tax. 

It is important to establish that there is a condition for claiming the tax exemption. According to the report, investors who do not ask for a full or partial rebate of the deducted tax or receive a subtracted tax credit will enjoy the exemption.

Further, Tantitemit conveyed that the new legislation surfaced after the cabinet in its weekly meeting ratified a draft royal decree published under the Revenue Code. Hence, the exemption will be attached to all profits made on investment tokens from January 1. In her disclosure, the Director General explained how the new tax law will attract foreign investment into the country. 

Likewise, she went on to describe investment tokens as an avenue for businesses to raise capital. With the new measure, investors will now be willing to hold more investment tokens which in return will give businesses in Thailand more funds to expand their services. In the long run, the move will help reduce the rate of unemployment in the country. 

How Thailand Has Adopted a Relaxed Approach to Crypto Regulation 

Recall that in March 2022, Thailand made a U-turn from its initial plan of imposing a 15% tax on crypto profit. The Finance Ministry of the country ditched the plan and embraced a more relaxed approach that exempts crypto traders using authorizing exchange from a 7% value-added tax (VAT).  

The exemption came as an attempt to encourage more investment in the Thailand crypto landscape. As part of the tax policy, the Thai government promised tax exemptions for investors who invest for about 2 years in a crypto start-up in the country. 

Consequently, the relaxed approach to cryptocurrency has placed the country into becoming one of the top crypto-investment hubs in Asia. The remarkable growth has been made possible due to how the Thailand government embraced a time-to-time consultation with stakeholders in the country’s virtual asset market. 

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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