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.