Thailand offers tax breaks for companies issuing investment tokens

BANGKOK (Reuters) – Thailand’s cabinet on Tuesday agreed to waive corporate income tax and value-added tax for companies that issue digital tokens for investment, a government spokeswoman said.

Rachada Dianak, a reporter at the news conference said that companies will be able to access alternative methods of capital raising through investment tokens.

Rachada stated that 128 billion Baht ($3.71 Billion) in investment token sales will take place over the next two-years. The government also expects that 35 billion baht of tax revenue would be lost.

After the Thailand Securities Exchange Commission started regulating digital assets, cryptocurrencies gained popularity.

In order to encourage the development of crypto-trading, last year’s tax laws were relaxed by the government.

However, the central bank of the country and other regulators have prohibited the use of digital assets for payments. They fear it may impact financial stability in the country.

Cabinet also approved additional support measures for electric use, and exemptions from import duty for components of electrical vehicles including batteries.

($1=34.5700 baht)

(Reporting done by Chayut Setboonsarng & Panarat Thpgumpanat