Bangkok: The Cabinet has approved tax measures aimed at establishing Thailand as a global digital asset hub. The initiative involves exempting personal income tax on capital gains from the sale of digital assets through digital asset business operators. This exemption will be effective from January 1, 2025, to December 31, 2029, as part of the government's strategy to position Thailand as a leading financial hub.

According to Thai News Agency, Mr. Chulaphan Amornvivat, Deputy Minister of Finance, stated that the exemption applies to digital asset exchanges, brokers, and dealers under the Digital Asset Business Act B.E. 2561. The move is expected to support the growth of the Thai digital asset market and related businesses. By fostering this growth, the government aims to boost the Thai economy and enhance tax revenue in the medium term by at least 1,000 million baht.

Thailand has been a pioneer in implementing digital asset regulatory and tax laws. The country has refined its approach to digital asset taxes to encourage fundraising through digital tokens and promote cryptocurrency trading. These tax improvements are anticipated to increase the utilization of technology and innovation in Thailand, contributing to economic growth.

Mr. Chulaphan emphasized that these measures will support digital asset trading under the supervision of the Securities and Exchange Commission (SEC) and the Anti-Money Laundering Office (AMLO). The implementation aligns with recommendations from the Financial Action Task Force (FATF), ensuring transparency and auditability. Additionally, the Revenue Department is working on the OECD's Crypto-Asset Reporting Framework (CARF), which will facilitate the exchange of digital asset data globally, further enhancing transaction transparency.