Thailand has adopted the OECD’s global minimum tax framework through the Emergency Decree on Top-Up Tax B.E. 2567 (2024). Published in the Government Gazette on December 26, 2024, this legislation implements a 15% global minimum effective tax rate for large multinational enterprise (MNE) groups. The emergency decree took effect on January 1, 2025. The emergency decree was enacted through expedited procedures to implement “pillar two” of the OECD’s Base Erosion and Profit Shifting (BEPS) 2.0 project’s Global Anti-Base Erosion (GloBE) Rules. This swift implementation ensures Thailand can collect relevant tax revenues and prevents potential revenue losses from MNEs that might otherwise shift profits to jurisdictions with lower tax rates or to countries that have already implemented similar top-up tax legislation. Key aspects of Thailand’s implementation of the global minimum tax through the emergency decree are described below. Top-Up Tax The emergency decree introduces a dual mechanism for collecting additional top-up tax from MNEs whose effective tax rate falls below 15%. The first mechanism is a domestic top-up tax that targets MNEs operating within Thailand when their local effective tax rate is lower than 15%. The second mechanism is the income inclusion rule, which determines when a company’s foreign income should be included in the parent (main) company’s taxable income. This rule applies to Thai-based entities—including ultimate parent entities (UPE), intermediate parent entities, and partially owned parent entities—that hold ownership stakes in low-tax foreign jurisdictions. Scope MNEs subject to Thailand’s implementation of the global minimum tax framework are defined in the emergency decree as those whose UPEs report consolidated revenue of at least EUR 750 million (approximately THB 28 billion) in at least two of the four accounting periods preceding the relevant fiscal year. Reporting and Payment In-scope MNEs must comply with specific reporting obligations to the Thai Revenue Department. The filing deadline is set

Thailand’s Revenue Department (RD) has issued a notification requiring electronic platforms to report their revenue from business operators on their platform. With this information, the RD intends to track business operators’ income from the sale of goods and services through electronic platforms in order to facilitate accurate and efficient tax collection. The notification, which was enacted on December 27, 2023, took effect on January 1, 2024. Under the notification, electronic platforms are required to compile a “special account” containing information on the revenue received from each business operator on their platform and submit it to the RD through the department’s electronic reporting system within 150 days of the end of the fiscal year. The notification defines “electronic platforms” as entities that intermediate between business operators (i.e., sellers of goods or providers of services via the electronic platform) and consumers for the purpose of enabling electronic transactions between the parties. This covers online marketplace operators, ride-hailing operators, food delivery operators, and so on. This reporting requirement applies to electronic platforms registered in Thailand that have (or previously had, starting from the notification’s effective date) annual revenue exceeding THB 1 billion (approx. USD 28.5 million), except for electronic platforms under the supervision of the Bank of Thailand or the Office of the Securities and Exchange Commission, such as payment service providers and cryptocurrency exchanges. Electronic platforms can appoint a third party to prepare and submit the required special account information to the RD on their behalf. Compliance Steps As the requirements established by this notification mean that the RD will now have direct access to information on the income earned by vendors and merchants on electronic platforms, these business operators—whether corporate or individual—should ensure that they faithfully disclose their earnings, submit tax payments correctly, and file income tax returns in a

As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.