Thailand Abolishes Tax Fees for Investment Token Issuers

The Thai Cabinet has abolished corporate income tax and value added tax for companies issuing digital tokens for investment, Reuters reports.

Government spokeswoman Rachada Dhnadirek has noted the decision provides issuers with an alternative way to raise capital, other than traditional methods, such as debt.

The authorities of the country estimate that $3.71 billion worth of these assets will be issued over the next two years, resulting in a loss of about $1.01 billion in tax revenue.

Investment coins are tokenized versions of real assets that are tied to their value, such as stocks, precious metals, and real estate.

Additionally, the government has previously canceled VAT on digital asset transfers until 2023, provided the transaction is made through a licensed crypto exchange.