Thailand to waive up to $1B in taxes for investment tokens: report

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Thailand has pledged to waive up to $1 billion in taxes for companies issuing investment tokens as it seeks to promote the growing digital tokens industry.

The Thai cabinet has agreed to waive value-added and corporate income tax, Reuters reports.

Thailand's cabinet on Tuesday agreed to waive corporate income tax and value-added tax for companies that issue digital tokens for investment. Last year, the government relaxed tax rules in crypto trading to promote industry development. Reuters https://t.co/m96XccJVpJ

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While revealing the move, deputy government spokeswoman Rachada Dhnadirek said it would open alternative ways for companies to raise capital through investment tokens and traditional methods like debentures.

Rachada said the government estimates that Thai firms will raise $3.65 billion over the next two years through investment tokens. Consequently, the government will lose at least $1 billion through tax waivers over that time.

In an accompanying statement, Finance Minister Arkhom Termpittayapaisith revealed that the waiver would be applicable for both primary and secondary token offerings. For a company to benefit from these tax waivers, it must register the token offering, he added.

The waiver will not extend to utility tokens, the Minister clarified while reiterating the government’s pledge to build a payment infrastructure fit for the digital economy.

While the Thai government has banned digital assets as a payment method, investment tokens are legal. The country’s securities regulator also banned staking and lending following the collapse of several companies in the space, including Zipmex, an exchange with deep ties to Thailand.

Thailand’s tax waiver comes just months after issuing yet another tax exemption for digital asset transfers last May. Through a royal decree, the government exempted Bitcoin transfers from value-added tax until December 31, 2023. It also halted plans to roll out a 15% capital gains tax to boost digital asset adoption.

Thailand is one of the Southeast Asian nations leading the digital asset revolution. While Western powers continue to blame the nascent nature of the industry for the lack of regulations, Thailand and the Philippines are implementing several laws to boost innovation in the sector while promoting innovation.

The result has been a surge in adoption, with both nations ranking in the top ten for digital asset adoption globally.

Watch: Tokenizing Assets & Securities on Blockchain