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Thailand’s government will offer tax breaks for companies issuing investment tokens.
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The government expects over $3 billion worth of investment token offerings over the next two years.
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The move could attract more cryptocurrency companies to Thailand.
Companies that issue digital tokens for investment to enjoy tax breaks in Thailand
Thailand’s cabinet agreed earlier today that they would waive corporate income tax and value-added tax for companies that issue digital tokens for investment.
According to a Reuters report, a government spokesperson said companies operating in the country would have the opportunity to access alternative ways of raising capital through investment.
This latest cryptocurrency news gives companies more fundraising options in addition to traditional methods like debentures, Rachada Dhnadirek revealed.
The Thai government expects that there will be around 128 billion baht ($3.71 billion) worth of investment token offerings over the next two years. However, the government would lose tax revenue worth 35 billion baht ($1 billion), Rachada added.
Thailand could attract more cryptocurrency companies
The move to give companies issuing investment tokens tax breaks could attract more cryptocurrency-focused companies to Thailand.
Cryptocurrencies have become quite popular in Thailand in recent years after the country’s Securities Exchange Commission started regulating digital currencies.
In 2022, the government relaxed tax rules in the cryptocurrency trading industry in a move to promote further development.
Despite that, Thailand’s apex bank and other regulators have banned the use of cryptocurrencies as a means of payment for goods and services. According to the central bank, using cryptocurrencies as means of payment could impact Thailand’s financial stability and the overall economy.
In January, the Thai SEC launched a probe into the Zipmex cryptocurrency exchange for allegedly breaching local rules. The SEC was investigating activities that they believed could have violated the business rules for digital asset providers in the country.
The regulatory agency had asked Zipmex to clarify whether it has been operating as a digital asset fund manager in the country without proper licences.