Thailand Waives Crypto Income Tax Until 2029 To Boost Digital Asset Hub

Thailand has implemented a significant policy shift by approving a five-year personal income tax exemption on profits from digital assets. This new policy, effective from January 1, 2025, through December 31, 2029, aims to bolster the country's digital asset strategy and position it as a leading hub for digital assets in Asia.

Deputy Minister of Finance Chulaphan Amornvivat announced the Cabinet's decision, highlighting that capital gains from crypto trading will be exempt from personal income tax, provided the transactions are conducted through platforms supervised by the Securities and Exchange Commission (SEC). This move is part of a broader strategy to promote Thailand as a Digital Asset Hub, fostering growth in the crypto market, encouraging innovation, and attracting more digital asset businesses.

The tax exemption is designed to achieve several key objectives. Firstly, it aims to fuel the growth of Thailand’s crypto market by making it more attractive for investors. Secondly, it encourages innovation and blockchain-based fundraising, positioning Thailand as a forward-thinking jurisdiction. Additionally, the policy seeks to attract more digital asset businesses to the country, ultimately increasing tax revenues in the long run. According to the Deputy Minister, this could result in a boost of over 1 billion baht in the medium term.

The exemption will apply to profits earned through platforms licensed under the Digital Asset Business Act B.E. 2561. This includes digital asset exchanges, digital asset brokers, and digital asset dealers. All such platforms must be regulated by the SEC and comply with oversight from the Anti-Money Laundering Office (AMLO). This regulatory framework ensures that the tax exemption is implemented in a transparent and compliant manner, aligning with international standards.

Thailand's adoption of the OECD’s Crypto Asset Reporting Framework (CARF) further underscores its commitment to transparency and global compliance. Under this framework, crypto asset service providers (CASPs) will be required to disclose detailed information on user transactions, reducing the risk of tax evasion and enhancing the overall integrity of the digital asset market.

This policy shift is expected to have a profound impact on Thailand's digital economy. By waiving crypto income tax until 2029, the country is creating a favorable environment for global investors, potentially attracting significant capital and expertise. With regulatory support, transparency measures, and a long-term vision, Thailand is laying the groundwork to become Asia’s next crypto and blockchain innovation hub. This strategic move positions Thailand to compete with other crypto-friendly jurisdictions across the region, solidifying its role as a leader in the digital asset space.