The Thai Cabinet has passed two new laws designed to establish a minimum corporate tax rate of 15%, adhering to the Organisation for Economic Cooperation and Development (OECD) guidelines.
This significant step includes the approval of the Supplementary Tax Act 2 and changes to the criteria of the Competitiveness Enhancement Fund.
These initiatives are expected to raise more than 10 billion baht in annual revenue by setting clear guidelines, thereby likely boosting Thailand’s appeal to investors.
At a Cabinet meeting on Wednesday, officials disclosed the endorsement of draft decrees aimed at reforming corporate taxes.
The updated rules will facilitate the collection of taxes from foreign corporations operating in Thailand, aligning with the OECD’s global minimum tax standards.
The ratified legislation includes:
– The Marginal Tax Act
– The Act on Enhancing the Competitiveness of Target Industry Countries
Following this endorsement, the new rules will be made public before the 2025 implementation deadline and will subsequently be presented to the House of Representatives for recognition.
Deputy Finance Minister Julapun Amornvivat highlighted the critical role of this tax legislation in maintaining economic stability, stating that extensive public notification is not required.
He confirmed that the announcement and implementation processes would be carried out swiftly.
The global minimum tax is a concept endorsed by more than 100 countries under OECD guidelines. There has been an increase in queries from foreign investors about the tax environment in Thailand.
Julapun stated, “A clear announcement on this measure will enable investors to decide whether to pay taxes in Thailand or in their home countries.”
