Bangkok: The Cabinet has given the green light to four draft subordinate laws under the Additional Tax Act B.E. 2567 (2024), targeting multinational corporations with adjustments to income, expenses, and taxes for additional tax calculations.

According to Thai News Agency, the Ministry of Finance (MOF) proposed these laws to ensure multinational corporations comply with the Additional Tax Act. The approved drafts include a Royal Decree for determining eligibility for additional tax for reorganized multinational corporations, and another Royal Decree for designating non-affiliated legal entities. In addition, two Ministerial Regulations focus on the allocation of remaining additional tax to affiliated entities in Thailand and the adjustment of financial elements within the tax calculation scope.

The new regulations aim to bolster additional tax collection without imposing future financial burdens, projecting an annual target of 12,000 million baht. This move is anticipated to help Thailand align its tax laws with international standards, curbing tax base erosion and profit shifting by multinational companies. Furthermore, it is expected to reduce international competition in corporate income tax, fostering investment in Thailand with a focus on fiscal sustainability.