The Finance Ministry is to meet relevant state agencies to discuss investment promotion following Thailand's introduction of a top-up tax measure, said a ministry source who requested anonymity.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 require large multinational companies to pay a minimum effective corporate tax rate of 15%.
The adoption of the rules will force participating countries to reduce the use of tax exemptions as a tool for attracting investment, although tax credits and subsidies will still be possible.
Thailand has already enacted an executive decree on the top-up tax, which allows authorities to collect additional tax from multinationals whose effective tax rate falls below 15%, bringing their total tax burden up to the OECD minimum.
The source said the Board of Investment is considering how Thailand's investment promotion would proceed in alignment with the top-up tax measure.
The cabinet recently approved Thailand's participation in an international tax information exchange framework to support adoption of the OECD-led global minimum tax on corporations.
