Revenue Department to push for global minimum tax
The Revenue Department aims to propose a draft act on additional tax to the Cabinet soon, which will cover global minimum tax (GMT) on multinational companies.
Department director general Kulaya Tantitemit said this aims to comply with the Organisation for Economic Co-operation and Development’s agreement stipulating that large multinational companies should pay income tax at least 15%.
“The draft act on additional tax has passed public hearings under the Constitution,” she said.
She added that the draft act is ready to be proposed to the Cabinet so it will come into effect by next year.
Meanwhile, the Board of Investment (BOI) said around 1,200 multinational companies in Thailand are subject to 15% income tax.
However, the BOI affirmed that financial measures have been prepared to reduce tax payment for existing and new companies that seek investment support from the board.
To reduce expense on investment further, the board also aims to allocate funds to support companies in boosting their competitiveness, such as technology and labour skill development.
Natthaphat Tanboon-ek, chief financial officer of WHA Corporation, said in a seminar organised by the Stock Exchange of Thailand in August that GMT is among measures to ensure equality in attracting foreign direct investment (FDI).
He expects many countries to offer subsidies or non-tax measures to attract foreign investors. He also expects GMT to benefit Thailand and Vietnam in maintaining FDI market share.
Thailand has advantages in strategic location, transport and digital infrastructure, financial system, hospitals and international schools, he explained.
He added that the aforementioned factors, as well as collaboration between public and private agencies, are essential for attracting FDI.
Natthaphat expects business relocation to the Southeast Asia region to remain in the next three to five years, including Thailand.
Both old and new businesses that would move to Thailand include automobiles, electronics, electrical appliances, electric vehicles and data centres, he explained.
He said the number of Chinese investors who invested in WHA industrial estates has increased significantly. Chinese investors have become the company’s No 2 investors after Japanese investors, he added.
