Revenue Department commences public consultation on Pillar Two – GloBE Rules

Thailand’s Revenue Department has published the principles of a draft law to support a global minimum tax based on the Pillar Two Global Anti-Base Erosion (GloBE) Model Rules and invited stakeholders to provide their input by 15 March 2024.

The public consultation follows the Cabinet’s approval in March last year of measures to support a global minimum tax under the Pillar Two rules, which would require multinational groups with revenues of at least EUR 750 million to pay income tax at an effective tax rate of not less than 15 percent.

The Revenue Department is responsible for enacting laws and setting operational guidelines as appropriate to collect additional tax in accordance with Pillar Two. The legislation is planned to be effective from 2025. Thailand plans to allocate at least 50% but no more than 70% of the additional tax collected to its National Competitiveness Enhancement Fund for Target Industries.