NEWSLETTER
The Thai government has said that companies that issue digital tokens will receive an exemption that exempts them from paying corporate and value-added taxes. According to a report, the Thai government expects to lose just over $1 billion in tax revenue as a result of the exemption.
Relaxation of Tax Rules for Investments in Digital Assets
Thailand-based companies that issue digital tokens for investment will receive an exemption from corporate and value-added taxes, the Thai government has reportedly saying. As a result of the waiver, the Thai government, which projects investment token offerings worth $3.71 billion (128 billion baht) over the next two years, said it expects to lose more than $1 billion. in tax revenue.
According to a government spokesperson, Rachada Dhnadirek, such investment token offerings are in addition to Thai companies’ traditional methods of raising capital, such as bonds, hence the cabinet’s decision to exempt taxes. The government’s go-ahead for the tax exemption came just over a year after Announced the relaxation of tax rules for investments in digital assets.
At the time, the country’s finance minister, Arkhom Termpittayapaisith, said that the rule change would help promote and develop Thailand’s cryptocurrency industry. According to a Reuters report from March 2022, the new rules allowed “traders to offset annual losses with gains from taxes owed on cryptocurrency investments.” The report added that the rules would also “exempt a 7% value-added tax for cryptocurrency trading on licensed exchanges.”
Protection of users of digital assets
In addition to preserving the stability of the country’s financial system, the new rules apparently also seek to protect users of digital assets. For example, Bitcoin.com News reported in late January 2023 that entities offering crypto-custody services were now required to have mechanisms in place to ensure “efficient custody of digital assets and keys.”
Prior to this, the Thai Securities and Exchange Commission had issued regulations requiring crypto companies to “inform potential clients about investment risks in their advertisements.”
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