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Thailand’s government on Tuesday said it will waive corporate income tax and value-added tax for companies issuing digital tokens for investment. This marks another pro-crypto move by Thailand after relaxing tax rules for crypto trading last year.
Thailand’s Cabinet on March 7 agreed to offer tax breaks for companies issuing digital tokens for investment, reported Reuters. Deputy Government Spokeswoman Rachada Dhnadirek noted that these companies will raise capital through investment tokens, as well as alternative methods like debentures.
Finance Minister Arkhom Termpittayapaisith said the waiver applies to both the primary and secondary markets for companies and registered entities issuing initial coin offerings. Investors will also be exempted from value-added tax, but utility tokens are not eligible for these tax breaks.
“Cabinet approves waiver of corporate income and value added taxes for companies issuing digital investment tokens to facilitate fund-raising by listed and non-listed entities.”
The estimated investment token offerings over the next two years to worth over $3.71 billion. The move will cost the government to lose tax revenue of nearly $1 billion.
Growing Digital Tokens Landscape in Thailand
Thailand continues to witness growing crypto adoption in recent years after the country’s Securities Exchange Commission started regulating digital assets. The government also eased tax rules for crypto trading last year to grow the industry.
However, the Bank of Thailand and regulators have restricted some crypto services in the country, such as the use of digital assets for payments. The central bank claims it risks the country’s financial stability and overall economy.
Furthermore, Thailand’s SEC recently issued regulations for crypto custody providers to manage customers’ assets safely. The government is also testing central bank digital currency (CBDC), believing it can be a foundation of the future financial and banking system.
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