- The Thai government announced that the crypto companies issuing digital tokens would be excluded from crypto tax.
- Rachada Dhnadirek pointed out that the companies could use alternate ways to raise capital.
- Though the government has been introducing regulations to promote crypto trade, the central bank banned cryptocurrency as a payment mode.
The government of Thailand announced that the companies that issue digital tokens would be excluded from the corporate income tax and value-added tax.
Over the past few months, the country has been introducing policies to regulate crypto and thus promote secure and transparent digital asset trade. The nation’s relaxation on crypto tax is not for the first time; last year, the government relaxed the tax rules for investments in digital assets with the intention to promote the crypto industry as a whole.
Currently, regarding the termination of tax from the crypto issuing companies, Rachada Dhnadirek, the Member of the Executive Committee of the Democratic Party of Thailand, commented that the companies would have alternate ways of raising funds through investment tokens in addition to traditional methods like debentures.
In addition, Dhnadirek pointed out that there would be 128 billion baht, the equivalent of $3.71 billion worth of investment token offerings over the next two years. She added that the Thai government would have a loss of 35 million baht worth of tax revenue.
Previously, in January, the Thai Securities and Exchange Commission (SEC) issued regulations on the virtual asset service providers (VASP) that own crypto storage services, keeping them under the requirement of establishing a digital wallet management system.
Also, last year, the SEC implemented restrictions on crypto-based advertisements, instructing them to strictly focus on both the risks and returns of digital assets.
Though the Cabinet tries to promote cryptocurrencies, the county’s central bank and other legal regulators have been against the establishment of cryptos as a means of payment. The regulators banned cryptocurrency from being used as a mode of payment, claiming that it would affect the country’s financial stability and economy.