The Thai Official Gazette published a Royal Decree (No. 788) B.E. 2567 regarding the exemption of Value Added Tax (VAT) on the transfer of cryptocurrency or utilization of digital tokens in certain transaction and a Royal Decree (No. 789) B.E. 2567 regarding the exemption of Personal Income Tax (PIT) for resident individuals deriving share of profits or similar type income from Digital Investment Tokens. The Royal Decrees are dated 24 September 2024 and effective retroactively as from 1 January 2024. The Royal Decree (No. 788) stipulated as followings:
- The definition of “Digital Utilization Tokens” refers to a digital token that is intended to define the right to acquire specific goods or services, or any other specific rights as stipulated in an agreement between the issuer and the holder, and other units of rights as specified by the announcement of the Securities and Exchange Commission, in accordance with the Digital Asset Business Act.
- Exemption from VAT for the transfer of cryptocurrency or digital tokens for utilization, conducted in a digital asset exchange, through a digital asset broker, by a digital asset dealer, or transferred to a digital asset dealer, in accordance with the Digital Asset Business Act from 1 January 2024.
The Royal Decree (No. 789) stipulated as followings:
- The definition of “Digital Investment Tokens” refers to type of digital token that is defined in the Digital Asset Business Act as “a digital token which specifies the rights of a person’s participation in an investment project or business under the Digital Asset Business Act.
- Exemption from PIT for the taxpayer , who receives a share of profits or other similar benefits derived from holding or possessing a digital investment token by a Thai resident under Section 40 (4) (H) of the Revenue Code, and is withheld by the income payer under Section 50 (2) of the Revenue Code at the rate of 15% of the share of profits or other similar benefits, shall be exempt from including such share of profits or other similar benefits in the assessable income calculation for income tax purposes when the tax filing is due. This exemption applies to shares of profits or other similar benefits received from 1 January 2024 onwards, and only in cases where the taxpayer does not request a refund of the tax withheld or does not seek to credit the tax withheld whether in whole or in part.