BANGKOK, THAILAND – Thailand is joining the OECD’s global tax network and is cracking down on multinational corporations evading taxes.
Zehn Milliarden Baht zusätzlich im Visier
Thailand’s tax authorities are anticipating significant new revenue, with approximately 10 billion Baht expected to flow into the state treasury annually. This additional income is targeted at large multinational corporations that have been employing legal loopholes to pay effective tax rates below the new 15 percent minimum.
Finance Minister Ekniti Nitithanprapas has declared that the era of lenient tax-saving models is coming to an end. A new data exchange system is intended to curb cross-border profit shifting, providing tax authorities with a clearer view of international corporate structures.
Die Ergänzungssteuer als scharfe Waffe
Thailand has implemented an executive decree that introduces a national top-up tax. This mechanism allows officials to demand the difference from multinational corporations to meet the 15 percent minimum tax rate. This measure is expected to make tax havens less attractive for businesses operating internationally.
“Anyone who thinks they can get away with a letterbox company in the Cayman Islands might find things uncomfortable from 2027 onwards.”
The Ministry of Finance views the combination of the supplementary tax and international data exchange as the most effective strategy against the offshoring of profits. The aim is to ensure that profits are taxed where economic activity occurs.
Informationsaustausch beginnt im Juni 2027
The concrete launch date for the cross-border data exchange is set for June 2027. At this point, Thai tax investigators will gain access to corporate data from across the entire OECD network, establishing an unprecedented level of transparency.
Previously, officials often faced significant hurdles due to vital information being withheld abroad. The new framework is designed to make discrepancies between reported profits and actual business activities much easier to detect.
Steuergutschriften statt Steuerbefreiungen
The global minimum tax is also reshaping Thailand’s tax incentive system. Flat tax exemptions, which have historically been used to attract foreign investors, are losing their appeal, as any tax waived by one country can be reclaimed by another.
The focus is shifting towards targeted tax credits and direct subsidies. However, Finance Minister Ekniti noted that the current tax law does not yet accommodate such broad credit programs, requiring legislative amendments.
Competitiveness Enhancement Fund als Brückenlösung
As a bridging solution until the new regulations are fully in effect, the Board of Investment’s Competitiveness Enhancement Fund will serve as a financial buffer. This fund will enable targeted support for investment projects without relying on tax exemptions.
Officials consider the fund a crucial tool during this transitional period, allowing Thailand to remain internationally competitive as the global corporate taxation system undergoes significant changes. This approach aims to maintain investment while adapting to new international tax standards.