- Thai authorities believe investment token offering could raise over $3.7 billion
- The Cabinet of Ministers will abolish income tax
Thai government allowed release of tokens for investments without tax.
The Cabinet of Ministers of the country will abolish income tax and value added tax (VAT) for companies that issue investment tokens. But in order to take advantage of this, companies will need to register their token offerings. Such a policy is also beneficial for investors, since those who will invest in the sale of tokens will be exempt from paying value added tax.
Thai Finance Minister Rachada Dhnadirek said firms will be able to access alternative ways to raise capital through investment tokens. He added that the government expects the issuance of tokens to bring the country a profit of $3.7 billion over the next two years alone. That is about $1.8 billion a year. The state also estimates the potential loss of tax revenues at $1 million.
Cryptocurrencies gained popularity in Thailand after the SEC began regulating digital assets. Last year, the government eased tax rules on cryptocurrency trading to help develop the industry. However, the Central Bank of the country banned the use of assets as a means of payment. The authority explained this by saying that it could affect the financial stability and economy of the country.
At the beginning of the year, Thailand introduced new rules for crypto-custodial services. And the financial regulator said that the first virtual banks will appear in the country as early as 2025.