Thailand’s cabinet approved a tax exemption measure for crypto earnings to boost the country’s competitive edge in digital finance.

This strategic initiative focuses on earnings obtained from investment tokens, providing investors with a notable advantage by excluding these gains from personal income tax assessments. As per local sources, the measure is slated to come into effect on January 1, 2024.

This policy highlights the government's acknowledgment of digital tokens as a vital means of fundraising for domestic enterprises.

Dr. Kulaya Tantitemit, Director-General of the Revenue Department, emphasized the initiative's potential to elevate Thailand's status as a financial center. The exemption specifically targets income derived from the ownership or trading of investment tokens, provided that taxes were previously deducted at the source. This incentive is designed to attract both existing and potential investors to the rapidly growing digital token sector.

Thailand is implementing various measures to foster a more crypto-friendly environment. Recently, the country's Securities and Exchange Commission (SEC) approved the launch of spot Bitcoin ETFs by asset management firms, a move that has garnered significant institutional investment interest in the United States.

The Revenue Department anticipates that the tax exemption policy will drive approximately 18.5 billion baht in investment token fundraising within 2023 alone. This anticipated inflow of capital is expected to energize the Thai economy, facilitating business expansion, job creation, and overall economic prosperity.