On 24 Sep 2024, Thailand Tax Royal Decree (No 789) was gazetted, prescribing exemption from personal income tax for resident individuals deriving share of profits or similar income from Digital Investment Tokens.

This Insight has been updated for the tax exemption in Royal Decree (No 789).

Emergency Decree (No 19) BE 2561

On 13 May 2018, Emergency Decree (No 19) B.E. 2561 was gazetted, specifically prescribing income derived from digital tokens as a type of assessable (taxable) income subject to personal income tax and additionally prescribing the income subject to domestic 15% withholding tax.

Taxation of Income from Digital Tokens

In accordance with the Section 41 Source of Income Law and the laws governing withholding tax deductions and tax credits, the taxation of income derived from digital tokens for a resident of Thailand* is therefore as follows:

For a resident of Thailand deriving income from investments in digital tokens in Thailand

Personal income tax on the amount of the income derived in Thailand, and Claiming a tax credit for the amount of the WHT deducted at source.

For a resident of Thailand deriving income from investments in digital tokens outside of Thailand and the income is brought into Thailand

Personal income tax on the amount of the income brought into Thailand and Claiming a tax credit for the amount of the tax paid on the income in the source country (as prescribed in the relevant Double Tax Agreement).

Royal Decree (No 789) BE 2567

On 24 Sep 2024 Thailand Tax Royal Decree (No 789) was enacted, prescribing that from and including 01 January 2024, for share of profits or similar income derived from digital investment tokens from which income 15% withholding tax has been deducted, a resident individual is entitled to exemption from personal income tax on the share of profits or similar income derived from digital investment tokens if the taxpayer:

• Does not claim a credit for the 15% withholding tax deducted; and
• Does not request a refund of the 15% withholding tax deducted.

Exemption from Personal Income Tax

Following the enacting of Royal Decree (No 789), from 01 Jan 2024, a resident of Thailand* is entitled to an exemption from personal income tax for the share of profits or similar-to-dividend income derived from digital tokens, as follows:

For a resident of Thailand deriving income from investments in digital tokens in Thailand and withholding tax at the rate of 15% is deducted

Right to treat the 15% withholding tax as a final tax, and exclude the income and 15% withholding tax deducted in the personal income tax return filing

* A person who stays in Thailand for 180 days or more in a year is deemed to be a resident of Thailand.

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