Thailand Global Minimum Tax May Reshape Investment Incentives

Thailand is reviewing its investment promotion framework following the introduction of a top-up tax designed to comply with OECD global minimum tax rules.

The Thailand global minimum tax regime allows authorities to collect additional taxes from large multinational companies whose effective tax rates fall below the international minimum threshold of 15%.

Finance Ministry officials are meeting with government agencies and the Board of Investment to assess how existing incentive programmes should be adapted under the new framework.

While the Thailand global minimum tax may reduce the effectiveness of traditional tax holidays and exemptions, authorities are expected to continue using targeted tax credits, grants and subsidies to attract investment.

The Revenue Department estimates that the new rules could generate approximately THB10bn (USD306m) in additional annual revenue. Policymakers are seeking to balance international tax compliance with maintaining Thailand’s competitiveness as an investment destination.

The review highlights how global tax reforms are increasingly influencing investment-promotion strategies across Asia.