On 17 June 2025, Thailand’s Cabinet approved in principle a landmark tax reform aimed at strengthening the country’s position as a global Digital Asset Hub. The proposed measures, outlined in a draft Ministerial Regulation under the Revenue Code, were submitted by the Ministry of Finance and focus on specific tax exemptions. This initiative reflects the government’s broader strategy to attract innovation, foster digital investment, and stimulate economic growth within the rapidly evolving digital economy.
A Strategic Leap Toward a Digital Future
Thailand has positioned itself as a pioneer in digital asset regulation, being one of the first countries to implement comprehensive legal frameworks governing digital asset taxation and trading. Over the years, the country has continued to refine its regulatory environment to encourage token-based fundraising and cryptocurrency trading through platforms licensed and supervised by the Securities and Exchange Commission (SEC).
The newly proposed tax measures are intended to support the expansion of Thailand’s digital asset ecosystem and promote the adoption of blockchain and other emerging technologies. The Ministry of Finance anticipates that, despite short-term personal income tax losses, the reform will ultimately contribute to a medium-term increase in tax revenue of no less than THB 1 billion through broader sectoral growth.
Key Features of the Draft Regulation
1. Personal Income Tax Exemption on Digital Asset Gains
Under the proposed regulation, individual investors will be exempt from paying personal income tax on capital gains derived from the sale of digital assets—whether cryptocurrencies or digital tokens—provided the transactions are conducted through digital asset businesses licensed under the Royal Decree on Digital Asset Business Operation B.E. 2561 (2018), including exchanges, brokers, and dealers.
The exemption period is set to run from 1 January 2025 through 31 December 2029. This measure aligns the tax treatment of digital assets with that of securities listed on the Stock Exchange of Thailand, for which individual investors are similarly exempt from personal income tax on capital gains.
2. Elimination of Withholding Tax Requirement
Previously, individuals trading digital assets were subject to a 15% withholding tax on capital gains, with the net amount reportable in annual tax filings. The proposed regulation removes this requirement for qualifying transactions, significantly reducing the tax burden on retail crypto investors and aligning the treatment of digital assets with traditional equities.
3. Economic Impact and Oversight
The Ministry of Finance projects an annual personal income tax revenue loss of approximately THB 20 million, amounting to THB 100 million over five years. However, this is expected to be offset by increased taxable activity in the digital asset space, potentially generating at least THB 1 billion in medium-term tax revenue through income tax and VAT.
In accordance with the State Fiscal and Financial Discipline Act B.E. 2561 (2018), the Ministry conducted a formal impact assessment. The measure has been reviewed and supported—or not opposed—by relevant authorities, including the SEC, the Council of State, the Budget Bureau, and the National Economic and Social Development Council (NESDC).
Implications for the Thai Digital Economy
The proposed tax incentives are expected to deliver wide-ranging benefits across multiple sectors:
✓ Digital Asset Businesses – Licensed exchanges, brokers, and dealers may experience increased trading volumes and user growth as investor confidence rises.
✓ Startups and Fundraising – Token-based fundraising mechanisms, such as asset-backed tokens and initial coin offerings (ICOs), may become more attractive as viable alternatives to traditional venture funding.
✓ Technology and Innovation Sectors – Broader blockchain adoption is anticipated, leading to increased demand for ancillary services such as wallet providers, compliance tools, and blockchain audits.
✓ Capital Markets – A shift in retail and institutional investment from traditional equities to digital assets may follow, with financial institutions likely to introduce new crypto-related investment products.
While these incentives present promising opportunities, they also emphasize the need for robust governance and regulatory compliance. The SEC and the Anti-Money Laundering Office (AMLO) remain committed to upholding transparency standards aligned with the Financial Action Task Force (FATF) guidelines.
Additionally, the Thai Revenue Department is actively implementing the OECD’s Crypto-Asset Reporting Framework (CARF), which will facilitate the automatic exchange of digital asset transaction data across jurisdictions, further reinforcing Thailand’s global compliance posture.
How MPG Can Help
Businesses seeking to enter or expand their footprint in Thailand’s digital asset sector will require tailored legal and tax advisory. Mahanakorn Partners Group offers comprehensive services, including:
✓ Legal advice on capital gains classification and licensing under SEC and AMLO regulations
✓ Tax structuring and planning for digital asset transactions
✓ Compliance support for data reporting obligations, including CARF preparedness
✓ Drafting and reviewing contracts for digital asset platforms and token issuances
✓ Dispute resolution and representation during audits
For expert guidance on how these regulatory changes may affect your business, or to ensure compliance with Thai and international standards, please contact us at [email protected].