Thailand plans to implement a minimum corporate tax rate of 15% on large international companies starting next year, according to Finance Minister Pichai Chunhavajira in an interview broadcast on Friday.
Earlier this week, the cabinet approved legislation to facilitate the tax implementation, which will take effect once published in the Royal Gazette, he informed the MCOT channel.
As Southeast Asia’s second-largest economy, Thailand is seeking to modernize its laws, policies, and tax practices in pursuit of admission to the Organisation for Economic Co-operation and Development (OECD) in the coming years.
Currently, Thailand’s standard corporate income tax rate is 20%, but the government has been known to provide exemptions or lower rates for certain investment projects in an effort to attract large foreign companies.
Mr. Pichai noted, “These companies will need to pay taxes to their home countries even if they receive exemptions or a reduced 5% tax rate here. We also agree to return a portion of the tax revenue to them.”
Additionally, the government has proposed to alleviate part of the tax burden for foreign companies that fulfill specific criteria, such as relocating research operations to Thailand, enhancing their environmental practices, or providing skills training to local employees, he stated.
