Thai government approves tax benefits for investment tokens
The Thai government has authorised tax measures aimed at fostering capital raising through investment tokens, as confirmed by Kulaya Tantitemit, the director of the Revenue Department.
The decree, which was approved during yesterday’s Cabinet gathering, states that individuals who have received income, profit shares, or other benefits from holding digital investment tokens and have had a 15% withholding tax deducted, have the option to exclude this income from their income tax calculations.
However, this ruling is only applicable if the individual does not request a tax refund or claim a tax credit for the amount deducted. Kulaya highlighted that this new tax measure, effective from January 1, is aimed at encouraging fundraising via investment tokens, thereby boosting Thailand’s position as a capital mobilisation centre.
Kulaya further stated that investment tokens provide businesses with an additional capital-raising tool. This measure is anticipated to bolster the country’s competitiveness in capital mobilisation, which, in turn, should have a positive impact on investment and employment in Thailand.
The capital raised through this method is expected to contribute to the ongoing development of the Thai economy. The Securities and Exchange Commission projects that the amount of capital raised via investment tokens will reach 18.5 billion baht this year.
In a parallel move, the Cabinet has also approved tax measures to stimulate art purchases and support artists, as well as the classic car market. Individuals who purchase art pieces, such as paintings or sculptures, can discount the amount spent from their income tax calculations, according to Pornchai Thiraveja, head of the Fiscal Policy Office (FPO). This deduction is capped at 100,000 baht per tax year and will be valid until December 31, 2026.
Tax incentives
As part of the tax initiative aimed at supporting creative artists, artists will benefit from an increased deduction in expenses from their income, rising from 30% to 60%. This incentive is categorised as a continuing tax incentive.
Furthermore, the Cabinet has approved the reduction or exemption of import taxes on art to alleviate production costs and lower expenses for importing art for national and international art exhibitions in Thailand. The details and agencies involved will be discussed in greater detail later, as stated by the FPO, reported Bangkok Post.
For the tax initiative aimed at promoting classic cars, Pornchai stated that the Finance Ministry proposed an exemption for the Commerce Ministry’s prohibition on importing second-hand classic cars. He added that the excise taxes on these cars would be determined at a later date.
