Thailand consolidates its position as a major player in the cryptocurrency market with the approval of a decree to exempt investors receiving crypto profits from income tax. This measure, aimed at stimulating the economy and encouraging fundraising through tokens, follows other initiatives such as the abolition of VAT on crypto-derived income in Thailand.

End of income tax for crypto profits in Thailand

Thailand continues to show its appeal to the cryptocurrency market. According to an article in the Bangkok Post, a local media outlet, Thailand’s cabinet has approved a royal decree stipulating that investors receiving income or generating profits in the form of cryptocurrencies will now have the option of not including this income when calculating their income tax.

However, this measure does not mean that investors are exempt from taxes: this decree concerns individuals who have already benefited from a 15% withholding tax. Moreover, this exemption is only possible if the individuals concerned do not claim a tax credit deducted in full or in part.

According to a statement by the Director General of the Ministry of Finance, this measure is aimed both at continuing to make Thailand “an investment hub” for individuals earning income in cryptocurrencies, but also at stimulating the country’s economy. Indeed, the decree approved here should make it easier to raise funds through tokens.

“The Ministry of Finance, through the Department of Revenue, recognizes the importance of digital investment tokens (Investment Token), which will provide another fundraising tool for the country’s commercial operators.”

Earlier this month, Reuters reported that VAT and income tax had been abolished following a favorable cabinet decision, precisely in order to encourage this type of fundraising. Thai government spokeswoman Rachada Dhnadirek estimated that token offerings would generate $3.7 billion over the next 2 years.

A month earlier, Thailand’s Ministry of Finance announced a VAT exemption on “income derived from cryptocurrencies and digital token exchanges”.

Sources : Bangkok Post, Reuters

David Crypto