- Thailand plans a tax overhaul by 2025, including taxing residents’ worldwide income and introducing a 15% global minimum corporate tax.
- Residents spending 180+ days in Thailand would be taxed on global earnings, regardless of income transfer to Thailand, starting 2025.
- Current tax system taxes foreign income only if brought into Thailand in the same year; proposed changes aim to align with global tax norms.
- Concerns exist over impact on expatriates, foreign investment, and compliance costs amid these tax reforms.
- Annual income tax returns must be filed by Thai residents by March, with penalties for non-compliance.
- New rules effective from 2024 tax all foreign income for Thai residents, regardless of repatriation to Thailand within the year.
- Proposal also includes a global minimum corporate tax rate of 15% for multinational corporations with high revenues to align with OECD standards.
- These reforms aim to enhance tax transparency, curb avoidance, and ensure fair contributions from corporations operating in Thailand.
