Thailand Grants Tax Incentives to Boost Digital Economy through Cryptocurrency
Thailand’s government has made a bold move to enhance its position in the digital finance industry by approving a tax exemption for crypto earnings. This measure, which will come into effect on January 1, 2024, specifically targets earnings derived from investment tokens. By exempting these profits from personal income tax calculations, investors will gain a significant advantage. The government’s decision reflects its recognition of digital tokens as a vital fundraising tool for local businesses.
Dr. Kulaya Tantitemit, the Director-General of the Revenue Department, believes that this initiative has the potential to elevate Thailand’s status as a financial hub. The tax exemption applies to income earned from holding or transacting in investment tokens, as long as the tax has already been deducted at the source. This incentive will undoubtedly attract both current and prospective investors to the rapidly growing digital token sector.
Thailand is actively taking steps to become more crypto-friendly. Recently, the country’s Securities and Exchange Commission (SEC) approved the launch of spot Bitcoin exchange-traded funds (ETFs) by asset management firms. These ETFs have been attracting significant institutional investments in the United States.
The Revenue Department predicts that the tax exemption policy will drive around 18.5 billion baht in investment token fundraising in 2023 alone. This influx of capital is expected to stimulate the Thai economy, leading to business expansion, job creation, and overall economic growth.
