Thailand levies a minimum corporate tax of 15%

The Thai Ministry of Finance recently announced a 15% global minimum corporate tax for large multinational enterprises. This tax will be effective starting January 1, 2025. The move is a significant step for Thailand in the global tax field. It responds to the global tax reform trend. The aim is to create a more equitable international tax environment.

According to the Thai Ministry of Finance, the upcoming “supplementary tax” will align with the global minimum tax framework. It is a supplement and improvement to the current international tax system. The aim is to set a bottom line for tax competition among countries. This will prevent the decline of the effective tax rate caused by vicious competition.

Multinational enterprises with annual revenues exceeding 750 million euros will face a global minimum corporate tax rate. This requirement is based on principles established by the Organization for Economic Co-operation and Development (OECD). The minimum tax rate is set at 15%, which is approximately 782 million US dollars.

Thailand is revising its laws, regulations, policies, and tax practices to align with OECD standards. The country aims to join the organization in the next few years.

To attract more multinational companies and stimulate economic upgrading, the Thai government has designed a series of incentive measures. Qualified foreign companies can obtain tax credits by transferring research and development activities to Thailand. They are also encouraged to adopt environmentally friendly business models.

Additionally, providing professional training for local talents is part of the incentive scheme. This tax incentive mechanism encourages technological innovation, environmental protection, and human capital development. It aligns closely with global sustainable development goals.

The Thai Ministry of Labor has clarified the dispute over visa fees for foreigners

The Thai Ministry of Labor officially responded on Sunday to recent media reports. The Ministry pointed out that, according to the labor cooperation agreement between Thailand and its neighboring countries, foreign workers do not need to pay high fees to renew their work permits. During a parliamentary debate on migrant workers, opposition MPs raised concerns. They claimed that the cost of such procedures could reach 20,000 Thai baht, which attracted widespread attention.

Phumphat Muanchan, a spokesman for the Thai Ministry of Labor, responded with specific clarification. He stated that the actual renewal cost is much lower than the figure rumored outside. According to official information, the total cost for each foreign employee to renew their work permit is approximately 7,600 Thai baht, which specifically includes the following aspects:

1Visa and work permit handling fees;

2.Necessary health examination fees;

3.Medical insurance fees.

Thailand steps up efforts to attract “future industries”

The spokesman of the Thai Prime Minister’s Office, Jiraphu Hongsab, recently revealed that the Thai government is working on revising a series of laws and regulations. The aim is to significantly improve business convenience and focus on attracting investment in five core “future industries” to drive the country’s economy to accelerate. Promin Lorsulide, the secretary-general of Prime Minister Paetongtarn Shinawatra, outlined that this innovative investment promotion plan is expected to help Thailand achieve an annual economic growth target of more than 3%.

In this ambitious plan, the five selected industries are regarded as the key engines of national economic growth, including:

1.Data centers – Responding to the demand for digital transformation and strengthening data storage and analysis capabilities.

2.Artificial intelligence (AI) – Promoting the research and development of intelligent technologies and exploring intelligent application scenarios.

3.Electric vehicles – Accelerating the automotive industry revolution and promoting green travel solutions.

4.Precision agriculture – Improving agricultural production efficiency and ensuring food safety and sustainability.

5.Food technology – Innovating the food processing chain and meeting global nutritional needs.

The government predicts that with the development potential of these industries, domestic and foreign investors will respond enthusiastically. It is expected that at least 800 billion Thai baht will be invested in the above five areas throughout the year, helping Thailand become a global front runner in “future industries”.