• Thai Government is granting tax waivers to companies that issue digital tokens for investment.
• The government expects to lose over $1 billion in tax revenue due to the waiver.
• Regulations have been put in place by the Thai Securities and Exchange Commission to protect digital asset users.
Tax Waivers for Digital Token Issuers
Thailand’s government has said companies that issue digital tokens will receive a waiver that exempts them from paying corporate and value-added taxes. As a result of the waiver, the Thai government anticipates losing just over $1 billion in tax revenue.
Relaxation of Tax Rules for Investments in Digital Assets
The relaxation of tax rules for investments in digital assets enables traders to offset annual losses against gains for taxes due on cryptocurrency investments, as well as exempting a value-added tax of 7% for cryptocurrency trading on authorized exchanges.
Protecting Digital Asset Users
Besides preserving the stability of the country’s financial system, new regulations have also been put in place by the Thai Securities and Exchange Commission which oblige crypto companies to inform potential customers of the investment risks in their advertisements, as well as requiring entities offering crypto custody services to have mechanisms that guarantee efficient custody of digital assets and keys.
The Thai government’s decision to grant tax waivers to businesses issuing digital tokens is an effort to promote and develop Thailand’s cryptocurrency industry, while also protecting users from any potential risks associated with such investments.
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