Thailand’s Cabinet has approved draft secondary legislation to implement the Top-up Tax under the Emergency Decree B.E. 2567 (2024). The rules provide detailed guidance on calculating tax liabilities for large multinational groups, aligning Thailand’s domestic minimum tax framework with the OECD’s GloBE rules and the BEPS framework.
Thailand’s Revenue Department announced that the Cabinet approved draft secondary legislation on 30 December 2025 to implement the Emergency Decree on Top-up Tax B.E. 2567 (2024).
These draft instruments set out detailed rules for determining the scope of multinational enterprise (MNE) groups subject to the Top-up Tax, as well as for the adjustment of income, expenses, and covered taxes for the purpose of calculating the Top-up Tax.
The Emergency Decree on the Top-up Tax B.E. 2567 (2024) has entered into force and applies to large multinational enterprise groups for accounting periods commencing on or after 1 January B.E. 2568 (2025).
Accordingly, the Ministry of Finance, through the Revenue Department, has proposed the issuance of secondary legislation to prescribe additional details to ensure that taxpayers subject to the Top-up Tax are able to calculate their tax liabilities accurately, and in full compliance with the Emergency Decree.
The four draft instruments are as follows:
- Royal Decree prescribing the criteria for determining whether multinational enterprise groups that have undergone organisational restructuring are subject to the Top-up Tax.
- Ministerial Regulation prescribing the criteria concerning entities that are not constituent entities.
- Ministerial Regulation prescribing the criteria for allocating Top-up Tax to Thailand under the Undertaxed Payments Rule (UTPR) mechanism in cases where no constituent entity of a multinational enterprise group located in Thailand has GloBE income.
- Ministerial Regulation prescribing the criteria for adjusting income, expenses, and covered taxes for the calculation of the Top-up Tax, including the criteria for calculating the Domestic Top-up Tax in Thailand.
The draft secondary legislation under the Emergency Decree on the Top-up Tax B.E. 2567 (2024) has been developed in accordance with the OECD’s Global Anti-Base Erosion (GloBE) Model Rules, Commentary, and Administrative Guidance. This ensures Thailand’s Top-up Tax framework is fully aligned with internationally accepted practices of the OECD/G20 Inclusive Framework on BEPS.
Earlier, Thailand’s Revenue Department announced that the Emergency Decree on Top-up Tax B.E. 2567 (2024), establishing a domestic minimum top-up tax for MNE groups with consolidated revenues of at least EUR 750 million, was published in the Official Gazette on 26 December 2024 and takes effect from 1 January 2025.
