The Thai Cabinet has approved a waiver of corporate income tax and value-added tax for companies issuing digital tokens for investment, according to government spokeswoman Rachada Dhnadirek. This offers businesses an alternative method of accessing capital markets and raising funds, in addition to traditional methods such as debentures. The government estimates that digital token offerings over the next two years will total 128 billion baht ($3.71 billion), resulting in a potential foregone revenue of 35 billion baht due to the tax waiver.
In recent years, cryptocurrencies have gained significant traction in Thailand following the Securities Exchange Commission’s regulation of digital assets. Last year, the government further incentivized industry development by relaxing taxation regulations on crypto trading. Nevertheless, the country’s central bank and other regulators have prohibited digital assets as a form of payment because they could undermine financial stability and the overall economy.
In early 2022, the Thai government proposed a 15% capital gains tax for crypto investors. However, it soon scrapped the plans and exempted traders from the 7% Value-Added Tax (VAT) on authorized exchanges. This move demonstrates Thailand’s commitment to clarifying local crypto taxation rules.
The Cabinet also approved separate measures to promote electricity consumption and duty-free imports of components for electric vehicles, including batteries.