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.
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.
Mr Ekniti said the cabinet approved a proposal on Tuesday allowing the Revenue Department to share tax data on large multinationals with foreign tax authorities. Information exchanges are scheduled to begin in June 2027.
The Ministry of Finance expects the measure to reduce opportunities for multinationals to shift profits to low-tax jurisdictions and avoid taxation. The Revenue Department estimates the Global Minimum Tax could generate around 10 billion baht in additional annual revenue for Thailand.
Mr Ekniti noted that multinational companies have traditionally used offshore entities in tax havens to lower their tax liabilities. However, international information-sharing will make such practices more difficult.
He also said OECD rules allow countries to maintain investment competitiveness through mechanisms such as tax credits and direct subsidies instead of tax exemptions.
While Thailand’s current revenue code does not yet support expanded tax-credit measures and would require legal amendments, financial assistance can already be provided through the Competitiveness Enhancement Fund of the Board of Investment.
