(MENAFN- eTrendy Stock) The Thai government has officially approved tax exemptions aimed at individuals holding investment tokens and the issuers of these tokens to enhance the country's attractiveness as a hub for digital finance.

This decision comes as part of Thailand's efforts to encourage the use of digital tokens for fundraising and stimulate economic growth.

Details of the Tax Exemption Policy

Under the new tax regime, which took effect on Jan.1, individuals who profit from holding investment tokens and have had a 15% withholding tax deducted from their earnings can exclude this income from their personal income tax calculations. Kulaya Tantitemit, the Director-General of Thailand's Revenue Department, confirmed this policy. The aim is to foster investment in digital tokens and reduce the financial burden on investors.

Additionally, the Thai government announced tax breaks for companies issuing investment tokens. Specifically, such entities will be exempt from corporate income tax and value-added tax (VAT), as revealed on March 7. This measure is intended to provide businesses with a viable alternative to traditional fundraising methods, with Deputy Government Spokesman Rachada Dhnadirek noting the government's expectation that investment tokens could generate significant capital in the coming years.

The landscape of cryptocurrency taxation in Thailand has experienced various adjustments. Initially, a 15% capital gains tax on crypto traders was introduced in Jan. 2022, leading to a public outcry and its subsequent suspension in February 2022. The government then revised its tax policy in March 2022, exempting traders on authorized exchanges from a 7% VAT on crypto transactions.

This news follows the report that the Thailand SEC gave asset management firms the green light to invest in the U.S. Spot Bitcoin Exchange-Traded Funds (ETFs).

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