Nation Thailand
Thailand advances 15% global minimum tax on multinationals
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Thailand’s Cabinet has approved the collection of a 15% global minimum corporate tax on large multinational companies under an agreement led by the Organisation for Economic Co-operation and Development (OECD), aiming to prevent profit shifting to ta
Key facts
- Speaking after the Cabinet meeting on Tuesday (June 16), Ekniti Nitithanprapas, Deputy Prime Minister and Finance Minister, announced that the Cabinet had approved Thailand’s official exchange of Global Minimum Tax information with other
- Ekniti noted that enforcing the 15% minimum tax rate would directly affect multinational companies that have received investment incentives from the Board of Investment (BOI), as some incentives may have reduced their effective tax rates
- The government is therefore preparing to adjust its incentive structure, moving away from tax-reduction mechanisms that conflict with the 15% tax floor and shifting towards subsidies or tax credits in forms accepted by the OECD.
- The first is a reduction in electronic withholding tax from the previous rates of 5%, 3% and 2% to 1%
- Under the plan, companies will begin submitting information to the Revenue Department in June 2027, when international data exchange is also scheduled to start
- The measure will remain in force until December 2027 and is expected to boost private-sector liquidity by about 27 billion baht.
Summary
Speaking after the Cabinet meeting on Tuesday (June 16), Ekniti Nitithanprapas, Deputy Prime Minister and Finance Minister, announced that the Cabinet had approved Thailand’s official exchange of Global Minimum Tax information with other countries.
Under the plan, companies will begin submitting information to the Revenue Department in June 2027, when international data exchange is also scheduled to start. The Cabinet also authorised the finance minister or a designated representative to submit the information to international organisations and partner countries.