Thailand Provides Tax Break for Crypto Companies
- Thailand has seen a huge growth in crypto-related activities over the last few months.
- Authorities in the Asian country have made significant efforts to provide regulatory clarity.
The digital asset market in Thailand has seen a huge boom in recent months, and the nation’s government is seeking to leverage that growth with its new policy. According to a Reuters report, Thailand’s cabinet decided to exempt businesses that offer digital tokens for investment from corporate income tax and value-added tax.
Deputy government spokesman Rachada Dhnadirek revealed that companies will be provided with other sources of capital through investment tokens in addition to traditional options like debentures. According to Rachada, the government anticipates that over the next two years, investment token offerings will total 128 billion baht ($3.71 billion), costing them 35 billion baht in lost tax revenue.
Thailand has made significant efforts to clarify its domestic tax laws governing cryptocurrencies. In early 2022, the government proposed that investors be subject to a 15% capital gains tax. However, the government abandoned the proposals.
Last year, Thailand’s Securities and Exchange Commission issued a ban on the use of cryptocurrencies for payments. In addition, Thailand’s finance regulator recently released restrictions for cryptocurrency custody after banning cryptocurrency companies from providing staking and lending services last year and tightening the limits for crypto advertising. Thailand’s central bank has also taken part in international initiatives to evaluate central bank digital currencies.