Thailand’s Cabinet has approved a landmark tax exemption on personal income from capital gains on digital assets, effective January 1, 2025, to December 31, 2029. This strategic move aims to propel the nation toward its goal of becoming a leading global digital asset hub, news reports said.
The Ministry of Finance’s new measure grants a five-year personal income tax exemption, but crucially, it applies only to transactions conducted through platforms licensed and regulated by Thailand’s Securities and Exchange Commission (SEC).
According to government officials, this tax break is designed to enhance transparency in digital asset trading, foster innovation in blockchain and financial technologies, and attract international investment into Thailand’s burgeoning digital economy. Deputy Finance Minister Julapun Amornvivat stated that the policy seeks to stimulate the country’s digital asset market and draw foreign capital, anticipating over 1 billion baht in additional indirect tax revenue in the medium term through increased spending and related economic activity.
By providing a clear and favorable regulatory framework, Thailand aims to solidify its position as a key player in the global crypto space, while simultaneously ensuring robust oversight and compliance. This initiative is part of a broader national strategy to transform Thailand into a regional financial and innovation hub.
Thailand’s proactive approach sets it apart, making it one of the first countries globally to adopt clear and structured tax legislation specifically for digital assets. The Thai Revenue Department is also preparing to implement protocols aligned with the OECD’s data exchange standards, ensuring greater transparency and traceability in digital transactions. Officials have hinted that this exemption could be the initial step towards introducing other tax models, such as Value Added Tax (VAT), on digital asset activities in the future.
In May, Thailand’s SEC announced it would block access to five major cryptocurrency exchanges – Bybit, 1000X, CoinEx, OKX, and XT.COM – starting June 28. The regulator stated these platforms were operating without a license and that the ban is intended to protect investors and prevent the use of unauthorized digital asset platforms for illicit activities, including money laundering.