Thailand Officially Exempts Income Tax on Crypto Assets
Reported by the Bangkok Post, the Thai Cabinet has approved a tax exemption policy for income earned from investment tokens.
In the report, the Director-General of the Thai Revenue Department, Kulaya Tantitemit, stated that individuals who profit from investment tokens no longer need to pay a 15% tax when calculating their income.
Tantitemit stated that this rule officially became effective on January 1, 2024. The purpose of this tax relief is to promote fundraising using investment tokens and to establish the country as an investment hub.
Government officials believe that this step will boost the country's economy by having a positive impact on investments and job creation in the region.
Thailand Eliminates VAT for Crypto Companies
In a broader scope, the Thai government has also abolished corporate income tax and value-added tax (VAT) for issuers of investment tokens, providing much-needed relief and an alternative fundraising method compared to traditional methods.
Government Spokesperson Rachada Dhnadirek explained that this way, companies will have access to alternative fundraising methods, such as investment tokens, in addition to traditional fundraising. Officials stated that the government expects investment tokens to generate approximately US$3.7 billion in capital over the next two years.
Thailand's proactive stance on crypto taxation could serve as a reference for other countries, including Indonesia, which are still navigating the complexities of digital financial taxation.
In Indonesia, crypto assets have been subject to VAT and income tax. VAT is levied at a rate of 1% of the transaction value of crypto assets when conducted on crypto exchanges registered with Bappebti. Transactions outside of Bappebti registered platforms are subject to a 2% VAT rate multiplied by the transaction value.
Income tax is imposed on crypto investors at a rate of 0.1% of the sale or purchase transaction if conducted on Bappebti registered exchanges and 0.2% if on unregistered exchanges.
The imposition of these taxes remains controversial as it is considered burdensome for industry players. On various occasions, industry players have requested a reevaluation of these tax regulations to avoid burdening both crypto players and investors in Indonesia.
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