Tax Relief for Trading Digital Assets and Investing in Thai Start-Ups

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On 8 March 2022, Thailand approved tax breaks to encourage investment in digital assets and crypto currencies. Thailand has also approved tax breaks for direct and indirect investments in Thai start-ups.
  

Tax benefits regarding the trading of digital assets are effective from 1 April 2022 to 31 December 2023: 

  • Approved exchanges for digital assets will be exempted from Value Added Tax;
  • Traders will be able to offset losses against any gains from crypto trading.
In January 2022, the Ministry of Finance agreed not to introduce a formerly proposed tax at a rate of 15 percent on gains from digital assets. 

Tax benefits aimed at investments in Thai Start-Ups:

Thailand aims to strengthen interests in Thai start-Ups. In this regard, Thailand is offering lucrative tax benefits to investors. Eligible are individuals, companies and partnerships investing in one of the targeted industries:
  • Aviation and logistics, Biofuels and biochemicals, Robotics, Digital economy and Medical hub;
  • Smart electronics, Medical and wellness tourism, Agriculture and biotechnology and Food for the future; 
  • Defense and education and Human resource development. 
  

Direct Investments

In case of direct investments, the investor is exempt from Personal Income or Corporate Income Tax on the profits from the investment, provided that the shares in the startup company are held for at least 24 months, and the startup operates in one of the sectors specified by the government. These are:
  • Aviation and logistics, Biofuels and biochemicals, Robotics, Digital economy and Medical hub;
  • Smart electronics, Medical and wellness tourism, Agriculture and biotechnology and Food for the future; 
  • Defense and education and Human resource development. 
  

Indirect Investments

In case of indirect investments via a Venture Capital Investment or Private Equity Trusts registered abroad or locally, the benefits are as follows:
  • Corporate Venture Capital Fund:
    Exemption from corporate income tax on gains from shares transferred in Thai Start-Ups, provided the Start-Up has earned at lest 80 percent of its income from activities in the relevant targeted industries for two consecutive accounting periods.
  • Shareholders of a Corporate Venture Capital fund and unit holder of a Private Equity Trust:
    Exemption of personal income tax on gains from investments held for at least 24 months, provided the fund or trust had invested in Thai start-Ups and these have earned at least 80 percent of their income from activities in the relevant targeted industries for two consecutive accounting periods. 

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