The Thailand government, through its cabinet has approved a waiver on personal income tax on gains made from the sale of digital assets over the next five years. According to credible sources, the deputy minister of finance in Thailand Julapun Amornbivat has confirmed the development.
As revealed, through the waiver the government intends to exempt the capital gain tax made from the sale of digital assets made through operators regulated by the Securities and Exchange Commission. The waiver is expected to subsist from January 1 2025 to December 31, 2029.
With this exemption, Thailand plans to boost both retail and institutional participation, further positioning itself as one of the fastest growing crypto hub in southeast Asia. This move will also improve the country’s digital assets market and bring in more crypto investors.
Thailand approves tax break for individuals holding cryptocurrencies
This development comes barely three months after the Thailand government announced the approval of tax break for individuals holding investments tokens. As revealed, individuals who earned profits from holding investments tokens and had a 15% withholding tax deducted could exclude this income when calculating their personal income tax.
The Director General of Thailand’s revenue department, Kulaya Tantitemit said the government aimed to promote fundraising by using investment tokens and also establish the country as an investment hub. The government also believed that the tax measure will have a positive impact on the country’s economy.
In the same month, the Thailand government also introduced tax breaks for investment token issuers. As revealed, the government waived corporate income tax and value-added tax for investment token issuers.
It is worth noting that the journey of crypto taxation in Thailand has not been a rosy one. In January 2022, the government introduced a 15% capital gains tax on crypto traders in the country.
However, this increase met with strict opposition from traders. As a result of this opposition, the government eased up on its tax regulations, and introduced a new tax policy exempting traders on authorized exchanges from 7% VAT on crypto.
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