15% MINIMUM TAX LAW TAKES EFFECT IN THAILAND
Thailand has enacted a new law to support the collection of a 15% global minimum tax. This law, which takes effect on January 1, 2025, is aimed at large multinational enterprises (MNEs) that have consolidated group revenues of €750 million or more for at least two of the four preceding financial years.
The law is part of Thailand’s commitment to align with Pillar Two of the OECD’s global anti-base erosion (GloBE) model rules. The GloBE Model Rules are designed to ensure that large multinational enterprises pay a minimum level of tax on their income, regardless of where they operate.
The new law will require MNEs that are subject to the global minimum tax to pay a top-up tax in Thailand if their effective tax rate in another jurisdiction is below 15%. This top-up tax will bring the MNE’s total tax rate up to 15%.
The Thai government estimates that up to 1,000 companies in the country could be affected by the new law, most of which would be foreign companies.
This new law is a significant step towards Thailand’s implementation of the global minimum tax. It is also a sign of Thailand’s commitment to international tax cooperation.
- Source: Click Here
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