No pain on these gains, at least for five years. Thailand’s Ministry of Finance will waive the capital gains tax on cryptocurrency sales for the next five years in a bid to attract investors and build a more robust digital currency ecosystem.

“This is a key step in boosting Thailand’s economic potential and a major opportunity for Thai entrepreneurs to thrive on the global stage,” said Deputy Finance Minister Julapun Amornvivat.

The Deputy Minister added that the country’s decision to exempt crypto capital gains taxes on crypto will help position it as a global financial hub and one of the first countries to implement well-formulated crypto taxation laws.

The tax exemption would also help induce Thai residents to trade cryptocurrencies on exchanges regulated by the Thai Securities and Exchange Commission (SEC) rather than on offshore venues. Trading on a local exchange would also help build the Kingdom’s crypto ecosystem.

The waiver will run through December 31, 2029, with the condition that it applies only for trades conducted through locally licensed exchanges, brokers, or dealers regulated under the country’s 2018 Digital Asset Business Decree.

The Ministry of Finance said it expects that the tax exemption will actually create more tax revenue. While that sounds counterintuitive, the reasoning appears sound. The strategy is to stimulate market activity, attract foreign investment, and boost domestic consumption through regulatory clarity rather than immediate tax collection.

The Ministry believes waiving the capital gains tax on crypto will generate about $1 billion in revenue a year.

According to the Investment Migration Insider website, “Thailand’s approach aligns with several jurisdictions that have eliminated crypto capital gains taxes entirely.”