Thailand is making a strong push towards becoming a hub for investment token fundraising by offering significant tax breaks to both issuers and holders.
Thailand is making a strong push towards becoming a hub for investment token fundraising by offering significant tax breaks to both issuers and holders.
On March 13, the Thai cabinet approved a measure that exempts individuals from paying income tax on profits from holding investment tokens, as long as they've already had the 15% withholding tax deducted. This effectively eliminates double taxation and incentivizes investors to participate in this new asset class.
"The tax measures aim to promote fundraising using investment tokens and establish the country as an investment hub," said Kulaya Tantitemit, Director-General of Thailand's Revenue Department. The government believes this move will boost the economy by attracting investment and creating jobs.
This latest development comes on the heels of another tax break announced on March 7. Corporate income tax and value-added tax (VAT) were waived for companies issuing investment tokens. This provides them with a cost-effective alternative to traditional fundraising methods. Deputy Government Spokesman Rachada Dhnadirek expects investment tokens to generate a significant amount of capital, potentially reaching $3.7 billion in the next two years.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
