Thailand has decided to implement a five-year exemption on capital gains tax for crypto transactions to increase tax revenue and solidify its presence in the digital asset market.
New Tax Law for Digital Assets
Thailand's Ministry of Finance has approved a new tax measure aimed at promoting the country as a global digital asset hub. Deputy Finance Minister Julapun Amornvivat announced on June 17 that from January 1, 2025, to December 31, 2029, individuals will be exempt from income tax on capital gains from the sale of digital assets made through licensed entities, such as exchanges and brokers.
Increase in Transparency and Transaction Monitoring
Julapun stated that this tax reform is expected to promote the domestic digital asset market and related sectors, contributing to economic growth and generating at least 1 billion baht in medium-term tax revenue. Additionally, the plan includes implementing a system for the automatic exchange of digital asset information with other countries, enhancing transaction transparency.
Comparison with Other Jurisdictions
By exempting capital gains tax on crypto income, Thailand joins a group of offshore jurisdictions, including the Cayman Islands and the British Virgin Islands, which also do not levy capital gains tax on cryptocurrency. Countries like Singapore and the United Arab Emirates provide similar exemptions for individual crypto investors. In Europe, residents of countries like Germany and Portugal can avoid paying capital gains tax altogether, provided they hold their cryptocurrencies for over a year.
The introduction of a five-year exemption on capital gains tax for crypto transactions in Thailand is a significant step towards enhancing the sector and increasing tax revenue, potentially leading to further engagement in digital assets.
