The Thai Government Will Give Tax Exemptions To Issuers Of Digital Asset Investment Tokens – Taxes Bitcoin News
Thailand’s government has said that companies issuing digital tokens will receive a dispensation exempting 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 issuing digital tokens for investment are set to receive a corporate and value-added tax exemption, the Thai government has reportedly said. As a result of the waiver, the Thai government, which estimates 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 add to Thai companies’ traditional capital-raising methods such as bonds, hence the government’s decision to waive the taxes. The government’s nod to the tax exemption came just over a year after it announced a relaxation of the tax rules for investments in digital assets.
At the time, the country’s finance minister, Arkhom Termpittayapaisith, said the rule change would help promote and develop Thailand’s cryptocurrency industry. According to a March 2022 Reuters report, the new rules “enabled traders to offset annual losses against gains for taxes on cryptocurrency investments.” The report added that the rules would also “waive a 7% value added tax for cryptocurrency trading on authorized exchanges.”
Protect users of digital assets
In addition to preserving the stability of the country’s financial system, the new rules also ostensibly 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 that guarantee “effective custody of digital assets and keys.”
Prior to this, the Thai Securities and Exchange Commission had issued regulations obliging crypto companies to “inform potential customers about the investment risks in their advertisements.”
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