Thailand expects to implement a global minimum corporate tax of 15% on multinational companies from January 2025, its finance minister said on Friday.
The government will urgently issue a law on the tax collection, Pichai Chunhavajira said on a local television program. Pichai’s comments came after a Reuters report that the cabinet on Wednesday approved draft legislation to collect the global minimum corporate tax.
Under new rules being shepherded by the Organization for Economic Cooperation and Development (OECD), a minimum 15% tax will be charged on multinationals with an annual global turnover of more than 750 million euros (US$784.58 million), regardless of their location.
Thailand’s corporate tax is currently set at 20%, 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, Southeast Asia’s largest economy, Malaysia and Singapore have also said they will implement the minimum tax rate in 2025.
