BANGKOK, Dec 29 — Thailand will introduce a global minimum corporate tax rate of 15 per cent for large multinational corporations (MNCs) starting January 1, 2025.
The new policy is part of Thailand’s efforts to update its tax system and meet the requirements to join the Organisation for Economic Cooperation and Development (OECD), The Bangkok Post reported yesterday.
Thailand’s current standard corporate tax rate is 20 per cent, though exemptions or reduced rates are offered for certain foreign investment projects.
The tax, referred to as a “top-up tax” will apply to multinationals with an annual global turnover exceeding 750 million euros (US$782 million).
The government hopes the new tax policy will boost investment while aligning with global tax standards.
According to the newspaper, the Thai government has pledged to offer compensation to ease the impact on foreign companies, on condition they meet specific criteria like relocating research to Thailand or adopting environmentally friendly practices.
The OECD has been at the forefront of promoting the global minimum tax standard.
