Thailand’s Crypto Industry Faces Uncertainty Despite Tax Incentives
Thailand’s Finance Ministry has announced that it will waive corporate income tax and value-added tax for companies that conduct initial coin offerings (ICOs) for investment purposes. This move is aimed at providing alternative methods of raising capital through token issuance in addition to traditional methods.
The Thai government, which is backed by the military, estimates that there will be around $3.7 billion worth of investment token offerings over the next two years. However, this move will result in a tax loss of around $1 billion.
Last year, the government scrapped plans to charge 7% VAT on crypto trading for exchanges and retail investors. This move was welcomed by the crypto community in Thailand, which has been growing rapidly in recent years.
However, there have been conflicting messages from the government regarding cryptocurrency trading and adoption. While the Finance Ministry is offering tax incentives for ICOs, the central bank has warned against investing in cryptocurrencies, citing the risks involved.
Despite this, cryptocurrency trading and adoption remain popular in Thailand, with many businesses accepting digital currencies as payment. The government’s move to waive taxes for ICOs is expected to further boost the country’s crypto industry.