On June 10, 2024, the Thai Ministry of Finance is about to embark on an important tax reform initiative. According to the Ethnic Daily, the Thai Ministry of Finance has completed a new draft bill to impose a minimum corporate tax rate of 15% on local foreign enterprises, which is expected to be formally submitted to the cabinet for review in the near future. This move marks a substantial step by Thailand in responding to the International Tax System Reform Plan of the Organization for Economic Cooperation and Development (OECD).

It is reported that the proposal of the new bill aims to increase the minimum corporate tax rate for multinational corporations and bring about an annual revenue of approximatelyAn additional tax revenue of 20 billion baht (approximately 736 million Singapore dollars). This is of great significance for strengthening the national financial strength and optimizing the tax structure.

Thai Deputy Minister of Finance, Chulapan, stated at this week's press conference that the finance minister is conducting the final review of the new bill and is expected to formally submit it to the cabinet for approval in the next two weeks. Julapan emphasized that the formulation of the new bill fully considersThe OECD's international tax system reform plan aims to ensure Thailand maintains fairness and competitiveness in global tax competition.

according toThe International Tax System Reform Plan launched by the OECD in 2021 requires economies that agree to join to impose a minimum corporate tax rate of 15% on local large multinational corporations starting from January 2024. This move aims to crack down on multinational corporations using tax rate differences between different countries for tax avoidance, maintain international tax order, and promote fair global economic development.

The new bill proposed by Thailand will be implemented as planned in theFully implement within 2025. At that time, the general corporate income tax rate in Thailand will still be 20%, but companies that enjoy investment benefits in Thailand will no longer enjoy low tax rates, and the minimum tax rate will be raised to 15%. This reform will enable Thailand to attract foreign investment while also better safeguarding national tax interests.

It is worth noting that many countries around the world have transformed fromStarting from 2023, the minimum corporate tax rate policy for foreign enterprises will be implemented. Last November, the Vietnamese parliament also passed a similar bill, imposing a minimum corporate tax rate of 15% on local foreign enterprises. The new law came into effect on January 1st of this year. This measure by Thailand will undoubtedly further promote the development of the global tax system towards a more fair and transparent direction.

The proposal of the new bill has attracted widespread attention in the industry. Experts point out that with the continuous reform and improvement of the global tax system, multinational enterprises need to bear more tax responsibilities while enjoying the convenience brought by global resource allocation. The tax reform in Thailand this time will have a profound impact on the operations of multinational enterprises in Thailand.