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On March 12, 2024, the Cabinet made significant strides in fiscal policy by endorsing tax measures designed to stimulate fundraising activities utilizing digital tokens for investment purposes, termed Investment Tokens. This legal article provides a comprehensive examination of the ratified tax measures, elucidating their ramifications and objectives within the framework of nurturing the digital economy in consonance with governmental directives. 

The individual investors who receive share of profits (dividend) or any benefits of a similar nature from holding or possessing investment tokens may elect to pay personal income tax at the rate of 15% equal to withholding tax amount, instead of including the share of profits (dividend) or any benefits for personal income tax calculation and paying tax at progressive rates up to 35% of the net income, provided the investors do not claim for a refund or use withholding tax amount as a tax credit, whether in wholly or partially. 

These tax measures become enforceable from January 1, 2024, onwards, symbolizing their immediate applicability in the fiscal landscape. 

In conclusion, the Cabinet’s endorsement of tax measures on March 12, 2024, signifies a seminal progression towards nurturing the growth and maturation of the digital economy within the nation. By incentivizing investment through digital tokens and aligning oversight standards akin to those governing securities, the government underscores its commitment to harnessing technology for economic advancement. The delineated tax benefits serve to incentivize individual participation in tokenized investment ventures while ensuring compliance with pertinent tax statutes. Overall, these measures epitomize the government’s proactive stance towards promoting and cultivating the digital economy, positioning the nation for sustained prosperity and innovation in the digital age. 

As always, it is recommended that you seek professional legal advice regarding this matter to ensure accurate information. Please contact law@ilct.co.th for more information concerning this. 

Cabinet-Approved Personal Income Tax Measures for Investment Tokens [please download] 

WRITTEN BY

For further information, please contact:

Professor Jayavadh Bunnag – ILCT,
jayavadhb@ilct.co.th

Professor Jayavadh Bunnag – ILCT

Professor Jayavadh, a legal expert with over 50 years of experience in commercial and natural resources law, a Harvard graduate, accomplished arbitrator, and dedicated educator.

Professor Jayavadh has been practicing law more than 5 decades long. He began his career in law after graduating from a prestigious Thai university in 1969. Via his sheer dedication and commitment for law, he was granted a Fulbright Scholarship and obtained an LL.M from the renowned Harvard University in 1972. With the full knowledge of both local and international laws, Professor Jayavadh is conversant in the rapidly changing legal landscape of Thailand.

Professor Jayavadh is well-versed in all aspects of the commercial law practice, specializing in natural resources laws (minerals, oil & gas and energy) . He was Vice President of the Thai Mineral Industry Council for many years and still serves as its Honorary Legal Advisor. He also acts as an arbitrator and counsel in both domestic and international arbitrations. He was the first Thai to become a Fellow of the Chartered Institute of Arbitrators (CIArb) and a Chartered Arbitrator and chaired its Thailand Branch for many years.

Despite his busy professional schedule, Professor Jayavadh teaches at many Thai universities and is still involved in assisting them in their academic activities.  In recognition of his academic contribution to Thammasat University, he received royal appointment as its Adjunct Professor of Commercial Law.   He is on the Committee of the Council of State to Revise Laws on Business Organizations.

Member, Committee to Revise Laws on Business Organizations, Council of State; President; International Law Association of Thailand; Chairman, The Chartered Institute of Arbitrators Association (Thailand), Past President, German-Thai Chamber of Commerce (1987-1988). Past Vice President, Thai Mining Industry Council.

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