Thailand has announced a significant tax reform to position itself as a leading crypto-friendly nation.
On June 17, the country’s Cabinet approved a five-year personal tax exemption on profits from selling digital assets, including Bitcoin. The measure takes effect from January 2025 and will run until December 2029.
Deputy Finance Minister Julapun Amornvivat explained on the social media platform X that the capital gains tax will be waived for all crypto transactions conducted through licensed digital asset service providers (CASPs).
The policy aims to attract more investment into Thailand’s digital economy while boosting domestic consumption and innovation.
The authorities expect the tax incentive to contribute over 1 billion baht (approximately $30.7 million) to the economy in the medium term by encouraging local and international participation in the crypto market.
Boosting Thailand’s digital economy
The Finance Ministry believes the waiver will stimulate Thailand’s digital asset ecosystem, making it more vibrant and competitive.
According to Amornvivat, the exemption is part of a broader strategy to turn Thailand into a regional hub for blockchain innovation, token fundraising, and related digital businesses.
He added:
“This is another important step in raising the economic potential of our country and is an opportunity for Thai entrepreneurs to grow on the world stage
The government also sees this move as a foundation for future tax policies, including adding value-added tax (VAT) on digital transactions.
Regulatory efforts
Meanwhile, the measure also ensures that crypto trading remains compliant with anti-money laundering (AML) regulations, under the oversight of the Thai Securities and Exchange Commission (SEC).
In addition, the Revenue Department plans to adopt the OECD’s Crypto-Asset Reporting Framework (CARF), which will require sharing digital asset data with international tax authorities.
This is intended to increase transparency and reduce tax evasion risks in cross-border crypto transactions.
These efforts are part of the several steps taken by the Thai government to embrace the crypto sector.
Thailand’s proactive stance is already evident in its recent approval of stablecoins like Tether and USDC for digital trade. Reports also suggest the country is considering allowing spot Bitcoin ETFs.
Despite this openness, authorities continue to enforce rules, including recent crackdowns on illegal crypto mining operations.
Mentioned in this article
Credit: Source link
