The Revenue Department plans to issue rules soon that classify types of digital tokens as part of its move to support token market development, says director-general Lavaron Sangsnit.
Mr Lavaron said token classification would reduce obstacles to token market development as some tokens might not require value-added tax (VAT).
He said if any tokens are classified as stocks, investors will be subject to the tax rules for stocks when selling the tokens.
If any tokens are classified as bonds, sellers will be subject to bond taxes upon selling them, said Mr Lavaron.
He said there are many kinds of tokens, including investment and utility tokens.
In Thailand, the Securities and Exchange Commission is in the process of improving digital asset governance. It set up a working committee consisting of relevant government agencies and private sector representatives to study and suggest ways to improve the laws to match the changing environment and growing risks for digital assets.
Digital tokens can determine the rights of holders for joint investment in determined projects, or the right to obtain products or services specified in a contract between the token issuers and the token holders.
The government is exempting VAT payment for the transfer of cryptocurrencies on licensed digital asset exchanges. The rule took effect in April and will continue until the end of 2023.
The rule also allows investors to deduct the total loss from the sales of such cryptocurrencies from the total profit gained from the sales of such assets before paying tax.
