Tax breaks introduced for companies issuing investment tokens
On March 7, Thailand’s cabinet agreed to waive corporate income tax and value-added tax (VAT) for companies issuing digital tokens for investment purposes, providing companies with greater access to alternative ways of raising capital. Firms must register the token offering to receive the tax exemption, which will be applicable for primary and secondary market token offerings. However, the tax exemption will not be extended to utility tokens. In 2022, Thailand waived a 7 percent VAT for cryptocurrency trading on authorized exchanges which is set to expire at the end of the year. According to government spokeswoman Rachada Dhnadirek, the government expects that 128 billion baht (US$3.71 billion) in investment token offerings will be generated over the next two years.