Flat 15% withholding tax on profits on investment tokens for individuals
On 24 September 2024, Royal Decree No. 789, which brings about a significant change in Thailand’s tax treatment of investments in digital tokens made by individuals, was published in the Royal Gazette. This decree grants an exemption from personal income tax for individuals earning income under Section 40(4)(b) of the Revenue Code, specifically covering dividends or profits derived from investments in digital tokens.
Under this new regulation, profits or dividends from investments in digital tokens will be exempt from personal income tax, provided that 15% withholding tax on the profits has been deducted at source. If these profits are subsequently included in one’s personal income tax calculation, they will be taxed at the applicable progressive tax rates, but the withholding tax previously deducted can be claimed as a credit against the total tax liability. Further guidance and detailed instructions on this tax measure are expected to be released by the Revenue Department. This decree marks significant progress in Thailand’s recognition and regulation of investments in digital assets.
Reference (in Thai):
• Royal Decree No. 789. Retrieved from Revenue Department of Thailand
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