Thailand expects to collect global minimum corporate tax from Jan 2025
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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.
Questions & Answers
Q.Which specific types of businesses will be affected by this new global minimum tax in Thailand?
Which specific types of businesses will be affected by this new global minimum tax in Thailand?
The new tax will apply to multinational companies with an annual global turnover exceeding 750 million euros (US$784.58 million). It does not specify any other business types.
Q.What is the current corporate tax rate in Thailand, and how does it relate to the new minimum tax?
What is the current corporate tax rate in Thailand, and how does it relate to the new minimum tax?
Thailand's current corporate tax rate is 20%. The new global minimum tax of 15% will be applied to eligible multinational companies, potentially impacting those currently receiving incentives below this rate.
Q.Has Thailand's government already taken formal steps towards implementing this global minimum tax?
Has Thailand's government already taken formal steps towards implementing this global minimum tax?
Yes, Thailand's cabinet approved draft legislation for collecting the global minimum corporate tax on Wednesday. The finance minister stated the government will urgently issue a law.
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