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Thailand Cuts Crypto Tax to Boost Investment Tokens

Thailand expects investment tokens to inject $3.7 billion into its economy over the next two years

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Thailand has greenlit a crypto tax break for investment token holders to encourage their use for fundraising.

Those holding investment tokens that have had the 15% capital gains tax withheld will now be exempt from personal income tax.

“The Ministry of Finance through the Revenue Department recognizes the importance of digital tokens for investment (Investment Token), which will be another tool for raising funds for business operators in the country,” Kulaya Tantitemit, director-general of Thailand’s Revenue Department, said.

The initiative is aimed at stimulating economic growth and providing firms with alternative fundraising methods. Investment tokens are expected to inject $3.7 billion into the Thai economy over the next two years.

Additionally, the government has waived VAT for token issuers as well as individual investors.

Thailand's initial 15% capital gains tax on crypto traders was introduced in January 2022 but was suspended one month after, following backlash from the public.

The new ruling isn't the first time Thailand has laid out crypto-friendly tax regimes. Last year, the Thai government offered to waive corporate income tax and value-added tax for companies raising capital through Initial Coin Offerings (ICOs).

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Thailand's pro-crypto approach has led its regulators to approve spot Bitcoin ETFs for institutional and UHNWI clients.

The SEC determined that spot Bitcoin ETFs are classified as securities, not digital assets. This allows Thai securities firms to be involved in these investments.

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