Bangkok (VNA) - Thailand will implement a global minimum corporate tax of 15% on multinational enterprises from January 1, 2025, the country’s finance ministry said on December 27.
The top-up tax would be levied at the globally agreed minimum tax 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 tax rate is 20%, although the government offers exemptions or lower rates for some investment projects to attract large foreign companies.
Under rules being shepherded by the Organisation for Economic Co-operation and Development (OECD), a minimum tax rate of 15% will be charged on multinationals with an annual global turnover of more than 750 million EUR (782 million USD).
Thailand is trying to update its laws, policies and tax practices as it seeks to join the OECD in the next few years.
The Thai government has offered to offset part of the tax burden for foreign companies if they meet requirements such as moving research activities to Thailand, improving their operations to be more environmentally friendly or providing skills training for local staff./.
Foreign investment into Thailand up 118% in 11 months
A total of 884 foreign companies were approved to invest in Thailand in the first 11 months of 2024 under the Foreign Business Act of 1999, with a total investment of over 213.96 billion THB (6.26 billion USD), representing a year-on-year surge of 118%, the Department of Business Development reported on December 24.
