Thailand to Implement Global Minimum Corporate Tax Rate from January 1, 2025
Starting January 1, 2025, Thailand will introduce a global minimum corporate tax rate of 15% on multinational enterprises. This "top-up tax" aligns with the Global Minimum Tax framework established by the Organisation for Economic Cooperation and Development (OECD), aiming to prevent tax competition by setting a minimum rate for large multinationals. The tax will apply to companies with an annual global turnover exceeding 750 million euros, regardless of their location.
Although Thailand's current corporate tax rate stands at 20%, firms benefiting from incentives by the Thailand Board of Investment can be exempt from tax for up to 13 years. The new measure ensures that such companies will now be subject to the minimum 15% rate, reducing the advantage of tax incentives and promoting fair competition. Other Southeast Asian nations, including Vietnam, Indonesia, Malaysia, and Singapore, have also committed to implementing the 15% minimum tax rate by 2025.
This policy change reflects Thailand's commitment to international tax reforms and aims to create a more equitable tax environment for multinational corporations operating within its borders.
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