Thailand Approves 5-Year Crypto Tax Break for Innovation
Key Takeaways
Five-Year Tax Exemption: Thailand will waive capital gains tax on crypto sales and exempt corporate income tax and VAT on investment token issuance from January 1 2025 to December 31 2029.
Boost for Digital Fundraising: The measure aims to promote blockchain-based fundraising and position Thailand as a digital finance and innovation leader.
Strengthening Global Competitiveness: The government sees the move as part of a broader strategy to establish Thailand as a global financial hub and early adopter of digital asset regulation.
Thailand has taken a significant step toward establishing itself as a crypto-friendly nation by approving a five-year tax exemption for companies issuing investment tokens.
Overview
On June 17 2025, Deputy Finance Minister Julapun Amornvivat announced in a statement that Thailand will exempt capital gains tax on crypto sales conducted through licensed digital asset service providers from January 1 2025 to December 31 2029. The minister explained that the move aims to enhance Thailand’s status as a global financial centre and a pioneer in establishing legal frameworks for digital assets and their taxation. The new measure is designed to attract blockchain-driven innovation, promote digital fundraising, and position Thailand as a regional leader in financial technology.
Government Pushes for Digital Fundraising Growth
On June 11 2025, the Thai Cabinet officially endorsed a tax waiver on corporate income tax and value-added tax (VAT) for firms raising funds through investment tokens. The initiative, spearheaded by the Ministry of Finance, will remain in effect until 2030 and forms part of Thailand’s broader Digital Economy Development Plan.
Investment tokens, which function similarly to securities like stocks or bonds but are issued on the blockchain, have gained popularity as a modern fundraising tool. They can grant rights to profit sharing, dividends, or participation in project governance. The government views this innovative funding mechanism as a strategic alternative to traditional capital raising, such as initial public offerings (IPOs).
According to government spokesperson Chai Wacharonke, the exemption will apply to income generated from the issuance of investment tokens, provided they comply with the Securities and Exchange Commission (SEC) regulations. Companies that issue these tokens during the five-year window will not be required to pay corporate income tax or VAT on the capital raised.
“The government is committed to supporting new fundraising channels that align with global financial innovation and open doors for Thai businesses to compete internationally,”
said Wacharonke.
Tax Relief Expected to Attract Billions in Investment
The Finance Ministry estimates the tax exemption could result in a revenue loss of approximately 35 billion baht (around $950 million) over five years. However, officials believe this will be offset by the long-term economic benefits, including greater investment, job creation, and increased adoption of digital assets.
Thailand is already seeing early signs of success with token-based fundraising. In 2023, the SEC approved the country’s first investment token offering, and since then, several companies have followed suit. The new tax relief is expected to accelerate this trend and attract local and foreign investors interested in blockchain-based financial instruments. The initiative also complements other regulatory efforts to support the digital asset industry.
Earlier this year, the Thai SEC revised its digital asset regulations to strengthen investor protection while fostering innovation. Moreover, the government has expressed interest in developing a central bank digital currency (CBDC) and supporting stablecoin integration into the financial system.
“With this exemption, Thailand signals that it is serious about embracing blockchain and digital finance,”
said Poonnatree Saksornchai, an analyst at Kasikorn Research Centre.
“The move could put the country ahead of regional competitors like Malaysia and Indonesia in attracting blockchain startups and fintech firms.”
Thailand Strengthens Crypto-Friendly Regulatory Environment
Thailand’s stance on digital assets has gradually evolved over the past few years. While early regulations focused on controlling speculative trading, more recent policies have emphasised innovation, business facilitation, and responsible use of blockchain technology. The country already offers certain tax breaks for crypto traders, including eVAT exemptions for crypto transactions executed through licensed exchanges. Additionally, capital gains tax on digital asset trading has been selectively waived in specific cases to encourage retail and institutional participation.
The new tax exemption for investment token issuers further strengthens Thailand’s pro-innovation approach. The policy benefits large corporations seeking alternative capital-raising methods and creates opportunities for startups and entrepreneurs aiming to finance projects via blockchain technology.
Looking ahead, the Thai government plans to monitor the measure’s effectiveness and assess the growth of the investment token market. If successful, the exemption could be extended or expanded to cover other blockchain-based financial products. As Thailand continues to lay the groundwork for a vibrant digital economy, the five-year tax break sends a strong message: the country is open for blockchain business.