29-12-2024 (BANGKOK) Thailand is set to implement a groundbreaking 15 per cent global minimum corporate tax rate for large multinational enterprises, marking a significant shift in the kingdom’s fiscal policy landscape. The measure, scheduled to take effect from 1 January 2025, demonstrates Thailand’s commitment to aligning with international tax standards whilst pursuing OECD membership.
The new legislation, dubbed the “top-up tax”, will specifically target multinational corporations with annual worldwide revenues surpassing 750 million euros (£647 million). This move represents a strategic departure from Thailand’s existing corporate tax framework, which currently imposes a standard rate of 20 per cent, albeit with various concessions and exemptions for foreign investors.
In a bid to cushion the impact on international businesses, Thai authorities have unveiled a comprehensive compensation package. Companies meeting specific criteria, such as transferring research operations to Thai soil or adopting eco-friendly business practices, will be eligible for certain benefits, according to senior government officials.
The reform arrives amidst Thailand’s broader economic modernisation efforts and its push to strengthen ties with the Organisation for Economic Cooperation and Development (OECD). The Paris-based organisation has been instrumental in championing global minimum tax standards as part of its initiative to combat corporate tax avoidance.
