Thailand has abolished corporate income tax and value added tax for companies that issue digital tokens for investment. This was announced by the representative of the government of this country Rachada Dhnadirek, writes Reuters.
Investment tokens are tokenized assets (created on the blockchain), which are a digital analogue of real assets and are tied to their value. Stocks, bonds, real estate, land, precious metals and other types of assets can be tokenized.
Companies in Thailand will have access to alternative ways to raise capital through investment tokens in addition to traditional methods such as debt, Dhnadirek said.
The Thai government estimates that 128 billion baht ($3.71 billion) of investment tokens will be issued over the next two years. According to Dhnadirek, this means that the state will lose 35 billion baht ($1.01 billion) in tax revenues.
Thailand prohibits the use of cryptocurrencies to pay for goods and services, but allows trading in cryptocurrencies and investing in digital assets. In order to promote the development of the industry, in 2022 the Thai government relaxed the tax rules in crypto trading.
The rule change allowed traders to offset losses from profits when calculating taxes on crypto investments and exempted them from paying a 7% value-added tax when trading cryptocurrencies on authorized exchanges. This tax exemption is valid from April 2022 to December 2023.