-
Articles
The Top-up Tax Law in Thailand (Part 1)
The Thai Revenue Department (“TRD”) recently promulgated the Emergency Decree on Top-up Tax 2024 (B.E. 2567) (“Top-Up Tax Decree”), in accordance with the OECD standards. This decree is in effect for the accounting period commencing on or after 1 January 20251.
The Top-Up Tax Decree gives the TRD the right to collect additional tax, in a manner similar to laws already enacted in 28 other countries (including Greece, South Korea, Canada, Japan, Denmark, Turkey, the Netherlands, New Zealand, France, Finland, Germany, Spain, Sweden, the United Kingdom, Australia, Italy, Ireland and Vietnam). Other ASEAN countries, such as Malaysia, Singapore, Indonesia, and the Government of the Hong Kong Special Administrative Region, are expected to introduce similar laws in 2025.
The Top-Up Tax Decree will apply to Large Multinational Enterprises (“MNEs”) that are Ultimate Parent Entities (“UPEs”) and have consolidated financial statements showing annual revenue of at least EURO 750 million for at least two of the four accounting periods preceding the accounting period under investigation. MNEs that operate in Thailand are subject to the Top-Up Tax Decree, whether they are Thai MNEs investing overseas or foreign MNEs investing in Thailand.
The TRD also is expected to issue secondary legislation related to the Top-Up Tax Decree, along with related guidelines governing tax filings, tax payment procedures, and the submission of GloBE Information Returns, and has plans to host a public seminar to provide additional clarification and guidance to stakeholders.
This article is intended to provide a regulatory overview only, and does not provide a comprehensive analysis or constitute legal advice. Should you have any questions on this or on other areas of tax law, please do not hesitate to contact our Tax Team at SCL Nishimura & Asahi Limited.
Areeya Ananworaraks
Counsel
Pairaya Yangpaksi
Attorney-at-Law
1Referencing the Thai Revenue Department’s news no 6/2025 dated 27 December 2024
Authors
Related Knowledge
-
-
Japan Considers Next Steps for VAT on Cross-border e-Commerce
Others
-
-
2025 Reduced Transfer and Mortgage Fees for Houses and Condominiums in Thailand
Articles
- Christopher OSBORNE
- Thiti HOMJABOK
- Areeya Ananworaraks and others
-
-
In Depth: Japan Aligns IIR Legislation with OECD Administrative Guidance, Potential Gaps Remain
Articles
-
-
Pascal Saint-Amans, former head of OECD Tax, on “BEPS 2.0 x Trump 2.0”
Business Tax Law
-
-
Two Articles Published in IBFD Tax News Service
Others
-
-
OWC: International Tax & Transfer Pricing
Bangkok
External Seminars
Areeya Ananworaraks was previously a legal officer at the Thai Revenue Department. She has 18 years of legal and tax consulting experience. Her specialties including corporate matters, M&A, joint venture, IPO & REIT, corporate secretary (company secretary), commercial contract, property, family business, international business, offshore incorporation, corporate income tax, personal income tax, international tax, value added tax, specific business tax, stamp duty, petroleum income tax. Areeya has extensive on cross border transactions, tax inspection, petroleum business and legal matters. In addition, she has advised numerous MNCs clients on establishing operations in Thailand and listed companies in the Thai Stock Market as well as carrying on due diligence assignments.