Thailand Approves Tax Exemption for Crypto Earnings to Encourage Investment Tokens

The Thai cabinet has given the green light to a tax exemption for cryptocurrency earnings in a bid to encourage fundraising through investment tokens. The exemption means that holders of investment tokens that have already had 15% capital gains tax withheld will not need to include the profits when calculating their income tax, effectively ending double taxation. The director-general of Thailand’s Revenue Department, Kulaya Tantitemit, said that the department recognised the importance of digital tokens for investment and that they would be a useful tool for raising funds for businesses in the country. The new exemption will apply to investment token earnings from 1 January 2024. Thailand has recently approved a number of tax benefits for crypto firms and users, including a VAT exemption for earnings until 2023 and a $1bn tax benefit for firms issuing investment tokens.