Thailand readies bill to collect global tax from multinational firms
Finance Ministry to have bill ready in two weeks; new system expected to boost Revenue Department’s yearly earnings by 20 billion baht
The Finance Ministry will have a global minimum tax bill ready for Cabinet approval within two weeks, Deputy Finance Minister Julapun Amornvivat said on Tuesday.
He added that the bill, once enacted, will help the Revenue Department collect up to 20 billion baht more from multinational enterprises every year.
The minister added that Thailand is committed to enacting this bill in line with Thailand’s agreement with the Organisation for Economic Cooperation and Development (OECD). The bill is currently being scrutinised by Finance Minister Pichai Chunhavajira, he said.
Julapun said the global tax issue was discussed during the Economic Ministers Council meeting on May 27 and the Board of Investment had aired concerns about the bill’s enactment being delayed.
He said he explained to the meeting that the bill could be enforced within 2025 as originally agreed upon as its enactment and amendment of relevant legislations should be completed within yearend.
“I affirm that the bill will be enacted and enforced as per the original schedule,” Julapun said.
The OECD initiated the concept of a global minimum tax to stop multinational companies from shifting to countries where they can pay lower taxes.
The OECD requires member countries to set a minimum corporate income tax rate of 15% to prevent other countries from offering lower taxes to attract investments. If taxes of less than 15% are paid in a country where a company’s subsidiary operates, then the country where the parent company is based can collect the difference.
