The Thai cabinet has cancelled corporate income tax and value-added tax for companies issuing digital tokens for investments. This was reported by Reuters.
Government spokeswoman Rachada Dhnadirek said that, thanks to this decision, issuers will have access to alternative ways to raise capital through investment tokens in addition to traditional methods such as debt instruments.
Authorities estimate that over the next two years such assets will be issued worth $3.71 billion. This means Thailand will lose around $1.01 billion in tax revenue.
Investment coins are tokenised equivalents of real assets that are linked to their value. They may include shares, precious metals, real estate.
Earlier Thailand canceled VAT on transfers of digital assets until the end of 2023. The regulation applies only if the transaction was conducted through a licensed crypto exchange.
In April 2022, the Thai government banned payments in cryptocurrencies. The corresponding requirement was issued by the local Securities and Exchange Commission.