Thailand to introduce tax breaks for investment token issuers
Thailand will ease the tax burden for companies issuing investment digital tokens
Thailand has abolished corporate income tax and value-added tax. This was announced by Rachada Dhnadirek, a spokeswoman for the country's government, according to Reuters.
Investment tokens are tokenized assets (created on a blockchain) that are the digital equivalent of real assets and are linked to their value. Tokenized assets can be stocks, bonds, real estate, land, precious metals, and other types of assets.
The Thai government estimates 128 billion baht ($3.71 billion) worth of investment tokens will be issued over the next two years. According to Dhnadirek, this means the state will lose 35 billion baht ($1.01 billion) in tax revenue.
Thailand bans the use of cryptocurrencies to pay for goods and services but allows cryptocurrency trading and investment in digital assets. To promote the industry, in 2022, the Thai government relaxed tax rules on crypto trading.
The rule change allowed traders to offset losses against 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 runs from April 2022 through December 2023.
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