The Thai Cabinet has approved two landmark laws to introduce a minimum corporate tax rate of 15%, aligning the nation with the Organisation for Economic Cooperation and Development’s (OECD) global tax framework. The move is expected to enhance Thailand’s competitiveness and generate over 10 billion baht in annual revenue.
Key legislation, including the Supplementary Tax Act 2 and amendments to the Competitiveness Enhancement Fund, was ratified during a Cabinet meeting on Wednesday. These measures aim to reform corporate tax collection, especially from foreign corporations operating in Thailand, ensuring compliance with OECD standards for a global minimum tax.
The legislation includes the Marginal Tax Act and the Act on Enhancing the Competitiveness of Target Industry Countries. Officials emphasized that the changes would establish transparent tax guidelines, fostering investor confidence and boosting Thailand’s economic appeal.
Deputy Finance Minister Julapun Amornvivat underscored the importance of the new tax framework in maintaining economic stability. “A clear announcement on this measure will enable investors to decide whether to pay taxes in Thailand or their home countries,” he explained.
The updated rules are slated for public release ahead of the 2025 implementation deadline and will be submitted to the House of Representatives for formal recognition. The government has pledged a swift rollout, stating that extensive public notification is unnecessary.
More than 100 countries have adopted the OECD’s global minimum tax guidelines, with Thailand joining their ranks to ensure its tax environment remains competitive and attractive to foreign investors.
