Flat 15% withholding tax on investment token profits gets Cabinet nod
The Cabinet has approved a draft royal decree that sets the tax on profit from investment tokens at a flat rate of 15% instead of adding it to annual personal income.
Speaking to reporters after the weekly Cabinet meeting on Tuesday, Revenue Department director-general Kulaya Tantitemit said the lawmakers approved her department’s proposal to collect a flat 15% withholding tax for the sale of investment tokens and exempt the profits from being added to personal yearly income.
If profits from the sale of investment tokens are added to personal income, then the tax rate can rise higher as personal income tax is calculated based on a ladder system.
Meanwhile, the royal decree will go into effect retroactively from January 1 as soon as the decree is published in the Royal Gazette.
The department said that in principle, the measure would upgrade investment tokens or digital investment contracts to the same level as other securities. This system will also support the government’s promotion of digital economy and will encourage people to invest more.
Though the measure may reduce the government’s income from taxes by about 50 million baht per year, it would lead to more investment, create more jobs and support Thailand’s goal of becoming a digital assets hub, the department said.
Kulaya told reporters that individuals who earn from investment tokens held under Articles 40(4) and 50(2) of the Revenue Code would be exempted from using the amount to calculate income tax again after they pay 15% withholding tax.
She said the measure would increase Thailand’s competitiveness as a hub for investment and investors would have a choice to invest in digital tokens.
She said the Securities and Exchange Commission has forecast that investments in digital tokens this year would be worth 18.5 billion baht and would benefit the country’s economy.
