The Thai government recently approved tax breaks for individuals holding investment tokens to encourage the use of these tokens for fundraising purposes. This move was made in an effort to promote investment token usage and establish Thailand as an investment hub.

Effective Jan. 1, individuals who make a profit from holding investment tokens and have a 15% withholding tax deducted can now exclude this income when calculating their personal income tax. This tax break is expected to have a positive impact on investment and employment in the region, ultimately boosting the country’s economy.

In addition to tax breaks for individuals, the Thai government also waived corporate income tax and value-added tax (VAT) for investment token issuers. This initiative aims to provide firms with an alternative fundraising method through investment tokens, in addition to traditional fundraising methods. The government anticipates that investment tokens will generate around $3.7 billion in capital over the next two years.

Thailand has seen some challenges with crypto taxation in the past. In January 2022, a 15% capital gains tax was introduced for crypto traders in the country, but this decision was met with public backlash. As a result, the implementation of the tax was suspended after traders strongly opposed it. The country later revised its tax policy to exempt traders on authorized exchanges from a 7% VAT on crypto.

This recent move by the Thai government to provide tax breaks for investment token holders and issuers is expected to have a significant impact on the cryptocurrency market in the region. For more updates on cryptocurrency news, visit Global Crypto News.

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