BANGKOK (Reuters) – Thailand’s cabinet on Tuesday agreed to waive corporate income tax and value-added tax for companies that issue digital tokens for investment, a government spokeswoman said.
Companies will have access to alternative ways of raising capital through investment tokens in addition to traditional methods like debentures, Rachada Dhnadirek told reporters at a news conference.
The government estimates that there will be 128 billion baht ($3.71 billion) worth of investment token offerings over the next two years, Rachada said, and that the government would lose tax revenue worth 35 billion baht.
Cryptocurrencies have gained popularity in Thailand in recent years after the country’s Securities Exchange Commission began regulating digital assets.
Last year, the government relaxed tax rules in crypto trading to promote industry development.
The country’s central bank and other regulators, however, have banned the use of digital assets as a means of payments, saying it could impact the country’s financial stability and overall economy.
Cabinet separately also approved support measures for electricity use and import duty exemption for components of electric vehicles, including batteries.
($1 = 34.5700 baht)
(Reporting by Chayut Setboonsarng and Panarat Thepgumpanat)