Transcript of the above video: 

As the title of this video suggests, we are discussing the exemption from Capital Gains Tax. This has been talked about a lot as it pertains to crypto. At first glance, I thought this was what it purported to be but that said, I was reading a recent article from the Nation, that is nationthailand.com, the article is titled: Ministerial regulation to exempt crypto trading tax publicised. So the title of this I think shows what is really going on here. Ministerial Regulation on exempt crypto trading tax publicised.

Let's get into it. "A Ministerial Regulation issued by the Finance Ministry to exempt income tax on capital gains from the trading of digital assets for five years has been published in The Royal Gazette." So we need to delineate between trading and conversion into Fiat is I think the operative phraseology is here. Quoting further: "The regulation was enacted under Article 4 of the Revenue Code to amend Finance Ministry Regulation No. 126, which specifies categories of proceeds exempt from Revenue tax. The new regulation adds Article 109 to Regulation No. 126 stating: "(109) Benefits derived from the transfer of cryptocurrency or digital tokens." So benefits derived from "the transfer of cryptocurrency or digital tokens" carried out through a digital asset exchange, through a licensed digital asset broker, or transferred to a licensed digital asset dealer under the law governing digital asset businesses, shall be regarded as taxable income only to the extent that the proceeds exceed the investment cost. This shall apply to assessable income received from 1 January 2025 to 31 December 2029."

So what that means to where I am reading it is, I think you have to delineate between tax and proceeds. Excuse me, let me back that up. You have to delineate for tax reasons, between trading and proceeds. So what it looks like to me is if you were to trade Bitcoin for Ethereum on one of these platforms, it doesn't look like there is any taxable event or it doesn't look like there is any, to my mind, this is how I'm reading this. And I'm not the end-all-be-all expert on this. I'm just trying to look at this because I have had a lot of people contact me or tell me, "oh, all crypto is exempt from capital gains." Now well the operating phrase here, "shall be regarded as taxable income only to the extent that the proceeds exceed the investment cost". Well only to that extent; that is capital gains. If your investment cost is $100 - just off the top of my head - and you sell it for $120, your gain is 20 and you would be taxed on that per what it says right here. 

So it looks to me, I don't fully understand this and I am looking to suss this out as time goes on, and we are assisting folks with crypto matters here in the office from time to time, especially as it pertains to their tax filings, especially for locally filed tax returns here in Thailand, but it does not look to me like this is a full exemption from Capital Gains Tax. It looks like one, okay they have now allowed for you to set a ceiling where you get to note your cost, and then the proceeds - whatever it is - plus the cost is a capital gain; you would be taxed on that based on the reading of this. Again, “shall be regarded as taxable income only to the extent that the proceeds exceed the investment cost”. Now the question is, does proceeds mean Fiat currency as opposed to digital assets - so trading in digital assets, that is not necessarily taxable or there will be no assessment of tax on for example trading from Bitcoin to Ethereum over one of these platforms - but would proceeds in terms of Thai baht payout for whatever you cash in the whatever crypto asset it is into Thai baht, whatever is the differential between what you bought that crypto asset for versus the proceeds derived from the sale of it, that sounds to me like a standard Capital Gains Tax.

That being said, a lot of this is new. We will certainly be keeping people updated on this channel as the situation evolves.