Cabinet backs adoption of OECD-led global minimum corporate tax of 15%
Finance Minister Ekniti Nitithanprapas (second from right), chats with Prime Minister Anutin Charnvirakul as they make their way to Government House for a cabinet meeting on Tuesday. (Photo: Chanat Katanyu)
The cabinet has approved Thailand’s participation in an international tax information exchange framework to support adoption of the OECD-led global minimum tax on corporations.Participation is expected to strengthen the country’s ability to collect additional taxes from large multinationals and curb cross-border tax avoidance, Finance Minister Ekniti Nitithanprapas said on Tuesday.
Thailand is among the countries that have adopted the Global Minimum Tax rules developed by the Organisation for Economic Co-operation and Development (OECD). They requires large multinational companies to pay a minimum effective corporate tax rate of 15%.
Adoption of the rules will force participating countries to reduce the use of tax exemptions as a tool for attracting investment, though tax credits and subsidies are still possible.
