The Thai finance ministry announced on Friday that the country will introduce a global minimum corporate tax of 15% applicable to multinational companies starting January 1, 2025. This initiative is part of a broader effort to align with the Global Minimum Tax framework, designed to establish a baseline for tax competition among nations.
The ministry’s statement outlined that this “top-up tax” will be enforced at the internationally agreed minimum rate. According to regulations being promoted by the Organization for Economic Cooperation and Development (OECD), this minimum tax will apply to multinational corporations that generate an annual global turnover exceeding 750 million euros (approximately $781 million), irrespective of their operating location.
Currently, Thailand’s corporate tax rate stands at 20%. However, businesses benefiting from investments recognized by the Thailand Board of Investment may receive tax exemptions that can extend up to 13 years. In the region, Vietnam has already enacted the minimum global tax rate, which was approved by its parliament last year. Additionally, Indonesia, Malaysia, and Singapore recognized as significant economies in Southeast Asia, have also committed to implementing this minimum tax rate by 2025.
