Benzinga - In an effort to benefit from the thriving digital asset industry, Thailand's government has approved the tax-free issuance of digital tokens for investment.
According to Reuters, companies that issue investment tokens will be exempted from corporate income tax and value-added tax (VAT).
Deputy government spokesperson Rachada Dhnadirek announced on March 7 that companies can raise capital through investment tokens, in addition to traditional methods such as debentures.
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The government expects that investment token offerings will generate 128 billion Thai baht (US$3.7 billion) over the next two years, although potential tax revenue losses are estimated at 35 billion baht ($1 million).
To clarify the taxation rules concerning crypto in the local market, Thai authorities have taken several measures. In early 2022, the government was considering implementing a 15% capital gains tax for investors, which was subsequently abandoned. Additionally, crypto traders were exempted from the 7% VAT on authorized exchanges.
The Securities and Exchange Commission of Thailand also introduced broader crypto regulations last year, prohibiting the use of cryptocurrencies for payments in March 2022. This tax-free issuance of digital tokens for investment comes as the Thai SEC continues its efforts to establish stricter crypto regulations for the protection of investors.
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