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The Thai cabinet has agreed to offer tax breaks for corporate income and value-added tax for companies issuing digital investment tokens.
Reuters reports that Thailand’s cabinet on Tuesday agreed to waive income and value-added tax for companies that issue digital investment tokens. Rachada Dhnadirek explained to reporters at a news conference that companies will be given alternative ways of raising capital through investment tokens in addition to traditional debentures.
Dhnadirek added that the Thai government estimates there will be around 128-billion-baht ($3.1 billion) worth of investment token offerings over the next two years. The government would lose out on tax revenue worth 35 billion Thai baht.
Crypto Grows in Popularity as SEC Regulates the Sector
According to Reuters, cryptocurrencies have gained massively in popularity recently after the Thai Securities and Exchange Commission (SEC) started regulating the sector. In March 2022, the country eased crypto regulations to drive industry growth. The rules mean that tax burdens on crypto investors in the country have been lowered from April 2022 until the end of 2023.
However, Thai regulators and the country’s central bank were forced to implement stricter policies last year as the crypto market experienced significant difficulties. The SEC announced a total ban on using cryptocurrencies as payment methods, arguing that it could impact the country’s financial stability and the overall economy.
In December 2022, the SEC also announced that it is preparing to implement stricter regulations for digital assets. Earlier in the year, the SEC issues new rules for companies offering crypto custody services. The SEC detailed that businesses that offer crypto custody services for clients’ digital assets must “establish a digital wallet management system to accommodate efficient custody of digital assets and keys and ensure the safety of clients’ assets.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.