On 7 February, Reuters reported that the Thai Finance Ministry would waive corporate income tax and value-added tax for firms that conduct initial coin offerings (ICOs) for investment.
According to government spokespersons, companies will have access to alternative methods of raising capital through token issuance apart from the traditional methods.
According to the report, the military-backed Thai government is estimated to launch an investment token offering worth around $3.7 billion over the next two years.
The new tax policy promises to offer tax exemptions of up to 10 years for investors who invest for at least two years in crypto startups in the country.
However, it was noted that offering these incentives would result in a tax loss of approximately $1 billion. Last year, the government scrapped plans to levy a 7% VAT on crypto trading for exchanges and retail investors.
The finance minister Arkhom Termpittayapaisith said that the revised tax policies had been developed to promote the nascent digital asset market in South East Asia’s second-largest economy. Thailand has grown to become one of the leading crypto destinations in Asia, owing to the government’s crypto-centered regulations and ability to work on the feedback from the stakeholders of the ecosystem.
The new tax policies could also become a benchmark for other nations currently looking to impose some form of crypto taxation. Indian crypto traders have been demanding something similar after the Indian government announced a 30% tax on crypto holdings without accounting for the losses incurred by traders.
