Tax Section - Doing Business
You will find here a series of summaries providing an overview of useful tax regulations, processes and tax issues for Doing Business in Thailand.
Thailand extends reduced VAT rate of 7% for another year
On 20 September 2024, Royal Decree No. 790, which extends the current reduction in the VAT rate for another year, from 1 October 2024 through 30 September 2025, was published in the Royal Gazette.
Results of public hearing on draft legislation related to Pillar 2 of the OECD’s framework on base erosion and profit shifting.
On 1 March 2024, the Thai Revenue Department (“RD”) held a public hearing on draft legislation (the Top-Up Tax Act) related to Pillar 2 of the OECD’s framework on base erosion and profit shifting.
Additional tax exemption on employee termination income
The Royal Gazette published Tax Ministerial Regulation No. 394 (2567) on 17 July 2024, granting further exemptions from personal income tax for income received due to involuntary termination of employment.
Recent public tax ruling on VAT implications of domestic transportation by trucks with temperature-controlled containers
On 8 January 2024, the Revenue Department issued public tax ruling no. Gor.Kor. 0702/88, which states that domestic transportation of goods using temperature-controlled container trucks is considered a “transportation service” exempt from VAT. However, temperature-controlled container trucks must meet the Department of Land Transport’s standards, and the provider’s duties are limited to merely transporting goods
Understanding the Global Minimum Tax
Based on the new Global Minimum Tax introduced by the OECD, a taxpayer in scope of Pillar 2 (where the consolidated group revenue is at least EUR 750 million in two of last four years) are required to pay a top-up tax on the difference between their effective tax rate in the jurisdiction where they operate and the 15% minimum tax rate.