• Thai Cabinet announces tax benefits for businesses that issue digital tokens.
• Exemption covers both main and secondary markets for ICOs issued by corporations or registered organizations.
• Bank of Thailand places limits on use of digital assets to protect financial stability and economy.
Thailand Excludes Firms Issuing Digital Tokens From Taxation
The Thai government recently announced that they will be exempting businesses that issue digital tokens for investment from paying corporate income tax and value-added taxes. This move is seen as a positive step towards the crypto sector, with Finance Minister Arkhom Termpittayapaisith stating that the exemption covers both primary and secondary markets for ICOs issued by corporations or registered organizations.
Boosting Crypto Expansion
Analysts predict that investment token sales will raise about $3.71 billion over the next two years, resulting in a loss of about $1 billion in tax income for the government. The Thai government has eased up on crypto trading laws last year, leading to increased cryptocurrency use within the country.
Limits On Use Of Digital Assets
The Bank of Thailand and other authorities have placed limits on the use of digital assets for payments or other services in order to protect their financial stability and economy. These authorities are also experimenting with Central Bank Digital Currency (CBDC) as a possible cornerstone of tomorrow’s banking system.
Tax Benefits For Investment Tokens
Deputy Government Spokesperson Rachada Dhnadirek said that enterprises will use investment tokens and other means such as debentures to obtain funds, with investors getting Value-Added Tax (VAT) exemptions when purchasing these tokens.
The Thai government’s decision to provide tax benefits to firms issuing digital tokens is seen as a step towards promoting cryptocurrency growth within their nation, while balancing it with necessary regulations set forth by their central bank to maintain economic stability.