The government of Thailand grants tax exemptions for cryptocurrencycurrency investment token earnings in order to encourage fundraising using these virtual assets. This development was covered by numerous local news sources on Tuesday.
Investment token holders who have had the 15% capital gains tax withheld can use this exemption to deduct their profits from income taxes. By taking this action, the possibility of double taxing such earnings is effectively avoided.
The director-general of Thailand’s Revenue Department, Kulaya Tantitemit, stressed the value of investment tokens as a means of capital raising for companies. Tantitemit purportedly declared, “The Ministry of Finance through the Revenue Department recognizes the importance of digital tokens for investment, which will be another tool for raising funds for business operators in the country.”
Effective January 1, 2024, the exception for investment token earnings will be implemented. The Thai government put this regulation into effect in an effort to support the cryptocurrencycurrency sector, attract investment through digital assets, and create a welcoming environment for it.
The tax incentives that underpin Thailand’s policy are designed to encourage global inflows and investments in the cryptocurrencycurrency industry. As a result, both the Thai economy and the industry will experience robust growth.