Thailand will impose a global minimum corporate tax of 15% on large multinational enterprises from Jan 1, 2025, the Ministry of Finance confirmed on Friday.
The “top-up tax” would be levied at the globally agreed minimum rate, in alignment with the Global Minimum Tax framework which seeks to set a floor on tax competition, the ministry said in a statement.
Thailand’s standard corporate income tax rate is 20%, though the government offers exemptions or lower tax rates for some investment projects to lure big foreign companies.
Under the rules being shepherded by the Organisation for Economic Cooperation and Development (OECD), the minimum 15% tax will be charged on multinationals with an annual global turnover of more than 750 million euros (US$782 million).
Thailand is trying to update its laws, policies and tax practices as it seeks admission to the OECD in the next few years.
The government has offered to compensate part of the tax burden for foreign companies if they meet requirements such as moving research to Thailand, improving their operations to be more environmentally friendly or offering skills training to their local staff.
