The Thai Cabinet approved a draft law to introduce the Pillar Two global minimum tax on 11 December 2024 which will implement a 15% global minimum tax on qualifying multinational enterprise (MNE) groups starting from January 2025.
Finance Minister Pichai Chunhavajira made the announcement in an interview with a local TV programme.
The law will take effect once published in the Royal Gazette.
Earlier, the Thai Revenue Department initiated a public consultation on draft legislation for enforcing the Pillar Two global minimum tax rules on 1 March 2024.
The legislation included the Pillar Two income inclusion rule (IRR) and undertaxed payment rule to ensure a minimum tax rate of 15% for multinational enterprise (MNE) groups with annual consolidated revenue exceeding EUR 750 million in at least two of the preceding four accounting periods. The proposed legislation also introduces a domestic minimum top-up tax for in-scope group members.
