Capital Gains Tax Exemption Until 2029 to Reinforce Thailand’s Position as Global Digital Asset Hub

Thailand’s Deputy Minister of Finance recently announced that on 17 June 2025 the Cabinet approved  (in principle) the tax incentive measures proposed by the Ministry of Finance to promote Thailand as a Global Digital Asset Hub. A key measure includes an exemption from personal income tax on capital gains derived from the sale of digital assets through the licensed digital asset business operators, including digital asset exchanges, brokers, and dealers, licensed under the supervision of the Securities and Exchange Commission (“SEC”) (according to the Emergency Decree on Digital Asset Businesses 2018 (“Digital Asset Decree”)). The exemption will apply from 1 January 2025 to 31 December 2029, with the goal of stimulating the Thai digital asset market and related businesses, which are expected to generate at least Baht 1 billion in additional tax revenue during this period.

The Deputy Minister also said, “this measure supports the government’s policy to position Thailand as a global financial hub. Thailand is among the first countries in the world to have both regulatory and tax frameworks for digital assets. The government has consistently revised the tax collection system to promote fundraising through digital tokens and encourage cryptocurrency and token trading through licensed digital asset operators under the SEC’s supervision. This latest tax reform will help drive the growth of Thailand’s digital asset market and related industries, increase digital token fundraising, and support the application of technology and innovation within the country, contributing to overall economic growth.”

This tax measure also promotes trading through Thai digital asset business operators regulated by the SEC and the Anti-Money Laundering Office (“AMLO”), both of which comply with the recommendations of the Financial Action Task Force (“FATF”), to ensure the transparency and traceability of transactions. The Thai Revenue Department is working on implementation of the OECD’s Crypto-Asset Reporting Framework (“CARF”), which facilitates automatic exchanges of digital asset information with countries worldwide, further enhancing the transparency of digital asset transactions.

Key Legislation Governing Digital Assets in Thailand

Thailand recognizes the growing importance and popularity of cryptocurrencies and digital tokens, and has enacted several laws to regulate and impose taxes on digital assets. Key legislation includes:

• Emergency Decree on the Digital Asset Business 2018: This is the primary legislation that defines and regulates businesses related to digital assets, such as exchanges, brokers, and dealers. These businesses must be licensed and are regulated by the SEC.
• Emergency Decree Amending the Revenue Code (No. 19), 2018: This law classifies income from digital assets as taxable income subject to personal income tax under Section 40(4) of the Thai Revenue Code, particularly section 40(4)(g), which applies to income derived from profit sharing or benefits of a similar nature derived from holding or possessing digital tokens, and section 40 (4)(h) which applies to benefits derived from the transfer of cryptocurrency or digital tokens that exceed the cost of the initial investment.
• Royal Decree under the Revenue Code on VAT Exemption (No. 744), 2022: This decree exempts value-added tax (VAT) for the transfer or sale of cryptocurrencies and digital tokens carried out through licensed digital asset exchanges, brokers, and dealers. This exemption took effect on 1 April 2022 and initially was valid until 31 December 2023, but has been extended by successive Cabinet resolutions through the current year.

Overview of Taxation of Digital Assets in Thailand

Personal Income Tax:

• Individuals must include income derived from digital assets on their annual personal income tax returns; the income is subject to progressive tax rates (ranging from 5% to 35%).
• Payors of income are required to withhold tax at the rate of 15% on income derived from digital assets (pursuant to Section 50(2)(f) of the Thai Revenue Code). This mandatory withholding applies to transactions in which both the buyer and the seller know the transaction price. However, when transactions are conducted on licensed exchanges and the parties do not know the counterparty’s pricing, there is an exemption from withholding tax obligations.
• Certain other exemptions apply. For instance, as previously noted, the Cabinet approved a measure to make capital gains from the sale of digital assets made through licensed digital asset operators exempt from personal income tax from 1 January 2025 to 31 December 2029.

Persons liable for personal income tax in Thailand include Thai nationals, foreigners who reside in Thailand for 180 days or more during a given tax year (calendar year), and foreigners who remit digital asset income earned abroad (commencing in 2024) to Thailand.

Value Added Tax (VAT) and Specific Business Tax (SBT):

Transfers or sales of cryptocurrencies and digital tokens conducted through licensed digital asset businesses (exchanges, brokers, dealers) are exempt from VAT, and there currently are no clear provisions requiring VAT or SBT on digital asset transactions. However, the Thai Revenue Department may consider imposing these taxes in the future, in alignment with international tax practices.

This article is intended to provide a regulatory overview only, and does not provide a comprehensive analysis or constitute legal advice. Should you have any questions on this or on other areas of tax law, please do not hesitate to contact our Tax Team at SCL Nishimura & Asahi Limited.

Areeya Ananworaraks
Counsel
Nuttanicha Pansottee
Associate
Pairaya Yangpaksi
Associate

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