Thailand: Tax relief to support trading in digital assets and investment in start-ups

Two tax relief measures to support trading in digital assets and investment in Thai start-ups has been approved

Tax relief to support trading in digital assets and investment in start-ups

The Thai Cabinet on 8 March 2022 approved two tax relief measures to support the trading in digital assets and the investment in Thai start-ups.

The measures to support the trading in digital assets are:

  • A value added tax (VAT) exemption from 1 April 2022 to 31 December 2023 for: (1) the transfer of cryptocurrencies or digital tokens traded in the digital asset exchange platforms approved by the Minister of Finance; and (2) the transfer of digital currencies issued by the Bank of Thailand under the Bank of Thailand’s digital currency development project.
  • An exemption from individual (personal) income tax for the profits derived from the transfer of cryptocurrencies or digital tokens on the amount that exceeds the investment as equal to any losses arising from transferring cryptocurrencies or digital tokens incurred in the same tax year. The individual income tax exemption applies to the transfer of cryptocurrencies and digital tokens from 14 May 2018 in the digital asset exchange platforms that are approved by the Minister of Finance as per the method, procedures and conditions prescribed by the Director-General of the Revenue Department.

The measures to support the investment in Thai start-ups, which will apply until 30 June 2022, are:

Type of investment

Tax beneficiaries

Tax benefits

Direct investment by individuals and companies or juristic partnerships registered in Thailand or overseas

  • Individuals
  • Companies or juristic partnerships registered in Thailand
  • Companies or juristic partnerships registered overseas

Individual income tax or corporate income tax exemption for profits derived from the transfer of shares in Thai start-ups that operate the government’s targeted businesses

Investment via venture capital

Corporate venture capital

Corporate income tax exemption for profits derived from the transfer of shares in Thai start-ups that operate the government’s targeted businesses

Investors who invest in a corporate venture capital

Individual income tax or corporate income tax exemption for profits derived from the transfer of shares in corporate venture capital

Private equity trust

The private equity trust is not subject to corporate income tax

Investors who invest in a private equity trust

Individual income tax or corporate income tax exemption for profits derived from the transfer of trust units


Read a March 2022 report prepared by the KPMG member firm in Thailand 

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.