Thailand to implement global minimum corporate tax rate from Jan 1

THAILAND will implement a global minimum corporate tax of 15 per cent on multinational enterprises from Jan 1, 2025, the finance ministry said on Friday (Dec 27).

The ministry said 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.

Under new rules being shepherded by the Organisation for Economic Cooperation and Development (OECD), a minimum 15 per cent tax will be charged on multinationals with an annual global turnover of more than 750 million euros (S$1.06 billion), regardless of their location.

Thailand’s corporate tax is currently set at 20 per cent, but companies receiving incentives from the Thailand Board of Investment can get an exemption of up to 13 years.

Vietnam’s parliament approved the minimum global tax rate last year.

Indonesia, South-east Asia’s largest economy, Malaysia and Singapore have also said they will implement the minimum tax rate in 2025. REUTERS