Thailand’s cabinet has agreed to waive corporate income tax and value-added tax (VAT) for companies offering investment tokens in the country, Bloomberg reported Tuesday, citing a statement from Finance Minister Arkhom Termpittayapaisith.
The minister said the tax waiver would be applicable in both the primary and secondary markets for companies and registered entities issuing investment tokens.
He added that investors with such tokens would also be exempted from VAT. Termpittayapaisith, however, stated that the waiver is not applicable for utility tokens due to their issuers’ promotional activities.
Over $3B Worth of Investment Token Offerings
According to the Thai government, it is expected that there will be 128 billion baht ($3.71 billion) worth of investment token offerings in the country over the next two years.
On the other hand, the government will lose tax revenue worth 35 billion baht ($1 billion) during the same period due to the tax waiver.
The latest development comes a year after Thailand’s cabinet set up rules to relax crypto tax obligations to support and promote investments in the sector.
The rules would enable crypto investors to offset their annual losses against profits generated in the same year. Moreover, investors that trade crypto on licensed exchanges would be exempted from a VAT of 7%.
Thailand’s Crypto Regulatory Push
Thailand is one of the first set of countries in Southeast Asia to regulate the crypto sector. While the country has not prohibited its citizens from trading and investing in crypto, it has banned the use of crypto as a payment method for goods and services, citing a negative impact on the country’s financial system and economy.
In October, the Thai Securities and Exchange Commission (SEC) announced plans to ban crypto exchange platforms from offering staking and lending services to protect investors against the risks associated with such services.
Earlier this year, the Thai SEC issued rules for crypto custody providers to establish a digital wallet management system to “accommodate efficient custody of digital assets and keys and ensure the safety of clients’ assets.”
