TAXATION ISSUES IN COLLECTING CORPORATE INCOME TAX FROM INITIAL COIN OFFERINGS

Abstract

In recent times, digital currency has become increasingly popular as  a medium of trading or exchange for investment. In addition, new entrepreneurs (Startups), which are companies or organizations with the idea of creating new projects, have adopted digital currency as a fundraising tool for Initial Coin offerings (ICOs) and generate assessable income. To address the need for regulation and investor protection in this emerging landscape, the government has enacted the Royal Decree on Digital Asset Business B.E. 2561 (2018). This decree aims to establish standardized guidelines for fundraising through ICOs and outlines measures for income tax collection. In line with this, the Revenue Department has issued a manual titled “Advice on Paying Personal Income Tax for Cryptocurrency Digital Tokens” to provide clarity on taxation practices

However, the existing enactment of the Royal Decree amending the Revenue Code (No.19) B.E. 2561 (2018) and the aforementioned income tax manual lack comprehensive provisions for the collection of corporate income tax from ICOs. To address this gap, the author has studied measures for collecting corporate income tax from ICOs in Thailand according to the Revenue Code and compared with the United States, Australia, and Singapore—countries have implemented systematic approaches to corporate income tax collection, including appropriate taxation methods for different types of digital tokens. Through this analysis, the author aims to identify problems and propose solutions. The author suggests amending the Revenue Code to provide clear definitions for each type of digital token. This clarification will better reflect their rights and financial nature as instruments.