Summary:
- Thailand’s lawmakers approved a tax exemption for firms that issue digital tokens for investments.
- The cabinet agreed to waive corporate income tax for such companies and value-added tax for investors, Finance Minister Arkhom Termpittayapaisith said on Tuesday.
- Thai’s government could lose around $1 billion in tax revenue due to the move.
- The latest waiver complements relaxed tax regulations introduced by lawmakers in 2022.
The government of Thailand agreed to provide a tax exemption for companies that issue digital tokens meant for investment purposes, Reuters reported on Tuesday citing a statement from government officials.
Although Thai’s SEC banned cryptocurrencies as a payment method, companies are still allowed to issue investment tokens under the law.
Finance Minister Arkhom Termpittayapaisith said that the tax break will apply to both companies issuing these tokens and investors who park capital in these digital investment vehicles. For companies, Thailand will waive corporate income tax. These firms must register their tokens to qualify for the tax break, Minister Arkhom said.
Also, investors who pour funds into these digital investment tokens will be exempt from paying value-added tax.
Government spokesperson Rachada Dhnadirek added that companies will have access to alternative channels for raising funding. These firms could secure capital through investment tokens, debentures, and other methods from traditional finance, Rachada noted.
The tax break could cut off a massive revenue stream and cost the Thai government around 35 billion baht or $1 billion over the next two years. However, the move is also poised to incentivize a flurry of investment token offerings worth north of 128 billion baht or $3.71 billion in the same 24-month period.
Thailand’s Crypto Regulatory Scene
The latest waiver complements relaxed tax regulations introduced by lawmakers in 2022. Thai officials previously pushed back on VAT charges for crypto transactions, announcing a VAT tax break on such transfers until 2024.
Thailand’s Securities and Exchange Commission (SEC) also introduced a framework to oversee crypto custody businesses.
The government has also introduced strict guidelines for crypto in some cases. Lawmakers banned crypto lending and staking services back in September 2022. In the same month, tighter advertising rules for crypto firms were announced.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments