Thailand’s cabinet has decided to exclude businesses that issue investment tokens from corporate income tax and value-added tax (VAT).
In addition to more traditional techniques like debentures, enterprises would have access to alternate ways of generating cash through investment tokens, according to the news that was announced on March 7 by deputy government spokesman Rachada Dhnadirek.
Dhnadirek noted that during the next two years, the government anticipates that investment token offers would bring in 128 billion Thai baht ($3.7 billion). The authorities put a $1 million estimate on the potential loss of tax revenue at 35 billion baht.
Thailand has made significant efforts to clarify its domestic tax laws governing cryptocurrencies, and the government has proposed that investors be subject to a 15% capital gains tax beginning in early 2022. Following the government’s decision to abandon the proposals, approved exchanges began exempting cryptocurrency traders from the 7% VAT a few months later.
