| Status | Enacted Law |
| Law | On October 21, 2025, the Thai Revenue Department issued three Notifications that address (1) the definition of Acceptable Accounting Standards, (2) the definition of refundable dividend taxes not within the scope of covered taxes, and (3) the definition of flow-through entities and the location rules. On December 26, 2024, Thailand published the Emergency Decree on Top-up Tax, B.E. 2567 (2024) in its Official Gazette to implement the GloBE provisions from January 1, 2025. On March 1, 2024, the Thai Revenue Department published a draft law on the implementation of Pillar Two. |
| Effective Date | Accounting periods beginning on or after January 1, 2025 |
| IIR | Yes (2025) |
| UTPR | Yes (2025) |
| QDMTT | Yes (2025) |
| Filing Deadlines | Standard |
| Safe Harbours | None |
On October 21, 2025, the Thai Revenue Department issued three Notifications that address (1) the definition of Acceptable Accounting Standards, (2) the definition of refundable dividend taxes not within the scope of covered taxes, and (3) the definition of flow-through entities and the location rules.
On December 26, 2024, Thailand published the Emergency Decree on Top-up Tax, B.E. 2567 (2024) in its Official Gazette to implement the GloBE provisions from January 1, 2025.
On March 1, 2024, the Thai Revenue Department published an 18-page consultation paper on the implementation of Pillar Two. This includes draft legislation which includes, an IIR, UTPR and a domestic minimum tax.
GLOBE APPLICATION
General
Whilst the Law provides for the high-level application of the Pillar Two GloBE Rules, much of the detail is left outstanding and is to be provided by a Ministerial Regulation. This includes:
– The GloBE income adjustments;
– Covered tax adjustments
– Corporate restructuring provisions;
– Flow-through entities;
– Stateless entities and investment entities;
– Deductible dividend regimes;
– Transitional rules;
– Eligible distribution tax systems; and
– Most GloBE elections.
On October 21, 2025, the Thai Revenue Department issued three Notifications that address (1) the definition of Acceptable Accounting Standards, (2) the definition of refundable dividend taxes not within the scope of covered taxes, and (3) the definition of flow-through entities and the location rules. All three notifications are consistent with the default GloBE treatment in the OECD Model Rules and apply retrospectively to fiscal years commencing on or after January 1, 2025.
Administrative Guidance
The Law does not include most of the detailed GloBE adjustments (eg to calculate GloBE income and adjusted covered taxes), which are to be provided in a Ministerial Regulation. The Law states that the provisions of the Ministerial Regulation must be in accordance with the rules and guidance issued by the OECD.
As such no provisions from the OECD Administrative Guidance are included in the Law, but are to be included in the secondary legislation.
Safe Harbour and Penalty Relief Guidance
The Law does not include any Safe Harbours, which are to be included in the secondary legislation.
ELECTIONS
The only elections included in the Law are:
• Excluded Entity Election (Section 27(1))
• Substance-Based Income Exclusion Election (Section 34)
Therefore the following are not yet included and are expected to be included in the Ministerial Regulation:
• Stock-Based Compensation Election
• Election to use the Realization Method
• Election to Spread Capital Gains
• Consolidation Election
• Unclaimed Accrual Election
• GloBE Loss Election
• Prior Year Adjustment Election
• De minimis Election
• Taxable distribution Election
• Tax transparency Election
• Distribution Tax Regime Election
Elections in the Administrative Guidance
Other elections included in the OECD Administrative Guidance are not included in the Law. This includes the:
• Excess Negative Tax Carry-Forward Election;
• Debt Release Election;
• Equity Investment Inclusion Election;
• Foreign Exchange Hedge Election;
• Portfolio Shareholding Election.
They are expected to be included in the Ministerial Regulation.
DEVIATIONS FROM THE OECD MODEL RULES/EU GLOBAL MINIMUM TAX DIRECTIVE
The charging and scope provisions in the Law are in accordance with the OECD Model Rules. The Law does not include any of the detailed adjustments or OECD Administrative Guidance.
Under Section 45 of the Law the UTPR top-up tax allocated to Thailand is to be allocated amongst multiple Thai constituent entities based on the ratio of each entities GloBE income to the jurisdictional GloBE income. A Ministerial Regulation is to be issued for further details.
However, if all of the Thai constituent entities agree in writing, one entity can be elected to account for the top-up tax (although all Thai entities remain jointly liable in the case of non-payment).
DOMESTIC MINIMUM TAX
Part 6 of the Law includes a domestic minimum tax (intended to be a QDMTT) for financial years beginning on or after January 1, 2025.
The amount of top-up tax under the domestic minimum tax is the general GloBE top-up tax calculated under Section 52 of the Law.
There are currently no mandatory or optional deviations as permitted in the OECD Administrative Guidance (eg no requirement for it to apply to 100% of the top-up tax and no exclusion of pushed-down taxes). Therefore, it does not currently reflect the requirements of the OECD Administrative Guidance. A Ministerial Regulation is to be issued for the detailed GloBE adjustments including the adjustments for QDMTT purposes.
The Law does not include specific provisions for the accounting standard to be used for QDMTT purposes.
As such, unless provided otherwise in the Ministerial Regulation, the domestic minimum tax is calculated using the financial accounting standard of the UPE, and, if that is not practicable, on the basis of an accepted accounting standard or an approved accounting standard, if:
-the constituent entity’s financial statements are prepared in accordance with that standard,
-the information contained in the financial statements is reliable; and
-permanent differences of more than EUR 1 million are conformed with the UPEs accounting standard.
Section 52 of the Law provides that the domestic top-up tax is allocated to each constituent entity in Thailand as under the general GloBE rules. However, one Thai entity can elect to be responsible for filing and payment of the domestic top-up tax.
Registration
Section 54 of the Law provides that each Thai constituent entity of an in-scope MNE group is required to submit the following information to the Revenue Department within fifteen months from the last day of the UPEs accounting period:
(1) Information about UPE and the country in which the UPE is located;
(2) Information on the constituent entities who are responsible for submitting GloBE Information Returns and their location;
(3) Other information as prescribed by the Revenue Department.
However, this will not apply if a constituent entity in Thailand is nominated to submit the information on behalf of the other Thai entities.
Filing
The relevant aspects of the submission of a GloBE Information Return (GIR) are included in Sections 55-56 of the Law.
The proposed approach is that every Constituent Entity located in Thailand will have an obligation to file a GIR in Thailand. However, this obligation can be discharged if the GIR is filed by:
-The Ultimate Parent Entity, or
-The Designated Filing Entity located in a jurisdiction that has a Qualifying Competent Authority Agreement in effect with Thailand for the Reporting Fiscal Year.
Where the GIR is being filed by either the Ultimate Parent Entity or the Designated Filing Entity, the Constituent Entity, must file a notification with the Revenue.
The notification must contain:
-Details of the entity that is filing the GIR, and
-The jurisdiction in which such an entity is located.
Where the GIR is filed by the Designated Local Entity it needs to outline the Constituent Entities that it is filing on behalf of.
Both the GIR and associated notifications must be filed no later than 15 months after the end of the fiscal year.
Section 57 of the Law also requires submission of an additional self- assessment return (a ‘GloBE Top-Up Tax Return’) by the GIR filing deadline.
Payment
Section 57 of the Law provides that payment of top-up tax must be made by the deadline for submitting the top-up tax return.
An instalment option is available to pay the top-up tax which is to be outlined in a Royal Decree.
Penalties
The Law includes numerous penalties and sanctions for failure to correctly apply the provisions of the Law.
Under Section 84 of the Law, failure to comply with registration requirements, or submit the GIR or top-up tax return without reasonable grounds is liable to a fine not exceeding 200,000 Baht.
None issued.
| Thailand | |||
|---|---|---|---|
| Effective Date: | Accounting periods beginning on or after January 1, 2025 | ||
| Section/Article | |||
| First Set of OECD Administrative Guidance | |||
| 1.1 | Rebasing monetary thresholds in the GloBE Rules | ||
| 1.2 | Deemed consolidation test | ||
| 1.3 | Consolidated deferred tax amounts | ||
| 1.4 | Sovereign wealth funds and the definition of Ultimate Parent Entity | Section 4 | |
| 1.5 | Clarifying the definition of ‘Excluded Entity’ | ||
| 1.6 | Meaning of ancillary for Non-Profit Organisations | ||
| 2.1 | Intra-group transactions accounted at cost | ||
| 2.2 | Excluded Equity Gains or Loss and hedges of investments in foreign operations | ||
| 2.3 | Excluded Dividends- Asymmetric treatment of dividends and distributions | ||
| 2.4 | Debt release Election | ||
| 2.5 | Accrued Pension Expenses | ||
| 2.6 | Covered Taxes on deemed distributions | ||
| 2.7 | Excess Negative Tax Carry-forward guidance | ||
| 2.8 | Substitute Loss carry forwards | ||
| 2.9 | Equity Gain or loss inclusion election | ||
| 2.9 | Qualified Ownership Interest/Flow through entity | ||
| 2.1 | Allocation of taxes arising under a Blended CFC Tax Regimes | ||
| 3.1 | Application of Taxable Distribution Method Election to Insurance Investment Entities | ||
| 3.2 | Exclusion of Insurance Investment Entities from the definition of Intermediate Parent Entity and Partially-Owned Parent Entity | ||
| 3.3 | Restricted Tier 1 Capital | ||
| 3.4 | Liabilities related to Excluded Dividends and Excluded Equity Gain or Loss from securities held on behalf of policyholders | ||
| 3.5 | Simplification for Short-term Portfolio Shareholdings | ||
| 3.6 | Application of Tax transparency election to Mutual insurance companies | ||
| 4.1 | Deferred tax assets with respect to tax credits under Article 9.1.1 | ||
| 4.2 | Applicability of Article 9.1.3 to transactions similar to asset transfers | ||
| 4.3 | Asset carrying value and deferred taxes under 9.1.3 | ||
| Second Set of OECD Administrative Guidance | |||
| 1 | Currency conversion rules | ||
| 2 | MTTCs | ||
| 3 | SBIE Rules | ||
| – Foreign rules | |||
| Stock-based compensation election | |||
| Leases | |||
| – Impairment losses inc in tangible asset value | |||
| 4.1 | QDMTT Safe Harbour | ||
| 4.2 | UTPR Safe Harbour | ||
| Third Set of OECD Administrative Guidance | |||
| 1 | Transitional CbCR – Purchase Accounting Adjustments (consistent reporting condition, goodwill impairment adjustment) | ||
| 2.2.1 | Transitional CbCR – JVs | ||
| 2.3.1 | Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting | ||
| 2.3.2 | Transitional CbCR – Using different accounting standards | ||
| 2.3.3 | Transitional CbCR – Adjustments to Qualified Financial Statements/Dividend Mismatches | ||
| 2.3.4 | Transitional CbCR – MNEs not required to file CbC Reports | ||
| 2.3.5 | Transitional CbCR – Qualified Financial Statements for PEs | ||
| 2.4.2 | Transitional CbCR – Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities | ||
| 2.6 | Transitional CbCR – Treatment of hybrid arbitrage arrangements | ||
| 3.1 | Identifying Consolidated Revenue | ||
| 3.2 | Mismatch between Fiscal Years of the UPE and another Constituent Entity | ||
| 3.3 | Mismatch between Fiscal Year and Tax Year of Constituent Entity | ||
| 4.2.1 | Blended CFCs -multiple GloBE Jurisdictional ETRs | ||
| 4.2.2 | Blended CFCs – not required to calculate an ETR | ||
| 4.2.3 | Blended CFCs – income of non-GloBE Entities | ||
| 5.3 | 30 June 2026 Filing deadline | ||
| 6 | NMCE Simplified Calcs | ||
| Fourth Set of OECD Administrative Guidance | |||
| 1.2.1 | Aggregate DTL Category basis | ||
| 1.2.1 | Exclusion of certain types of GL accounts and separate tracking | ||
| 1.2.1 | Exclusion of GL accounts that generate standalone DTAs | ||
| 1.2.1 | Exclusion of swinging accounts and separate tracking | ||
| 1.2.2 | FIFO/LIFO Basis | ||
| 1.2.3 | Aggregation of Short-term DTLs | ||
| 1.2.2 | Reversal of DTLs that accrued before the Transition Year | ||
| 1.2.2 | 5 year unclaimed accrual election | ||
| 2.1.2 | Recalculated deferred tax where GloBE carrying value differs from accounting carrying value | ||
| 2.1.2 | GloBE and accounting carrying values and the Transition Rules | ||
| 2.1.2 | Additional provisions for Intragroup transactions accounted for at cost | ||
| 2.1.2 | Exclusion of GloBE carrying value from SBIE | ||
| 3.1.3 | General rules for allocating cross-border, current taxes under a cross-crediting corporate tax system: 4 Steps | ||
| 3.1.3 | Specific rules for foreign PEs/CFCs, Hybrids/rev hybrids with domestic source income | ||
| 3.1.3 | Cross-crediting between Permanent Establishments and distributions from foreign subsidiaries | ||
| 4.1 | Extension of the Substitute Loss Carry-forward DTA to PEs, hybrids and rev hybrids | ||
| 4.2 | Allocation of deferred tax expenses and benefits from a Parent Entity to a CFC, PE Hybrid or Rev Hybrid: 5 step process | ||
| 4.2.2 | Five-Year Election to exclude the allocation of all deferred tax expenses and benefits to CFCs, PEs, Hybrids and Rev Hybrids | ||
| 4.2.3 | Exclusion of deferred tax assets or liabilities arising under a Blended CFC regime from transition rules | ||
| 5.2.2 | Determining GloBE status when a Flow-through Entity is held directly by another Flow-through Entity | ||
| 5.3.2 | Non-group owners: Partially owned Flow-through Entities | ||
| 5.3.5 | Non-group owners: Indirect minority ownership | ||
| 5.4.2 | Taxes allocated to a flow-through entity | ||
| 5.5.2 | Hybrid entities – Taxes pushed down include indirect owners | ||
| 5.5.4 | Hybrid entities – Entities located in jurisdictions without a Corporate Income Tax system | ||
| 5.6.2 | Extension of taxes pushed down to include Reverse Hybrids | ||
| 6.1.4 | Option to exclude a Securitization Entity from scope of QDMTT | ||
| 6.1.4 | Option to not impose top-up tax liabilities on SPVs used in securitization transactions | ||
| 6.1.4 | Amendments to the Switch-Off rule | ||
| 6.1.4 | New definition: Securitization Entity | ||
| 6.1.4 | New definition: Securitization Arrangement | ||
| January 2025 OECD Administrtive Guidance | |||
| 1 | Articles 8.1.4 and 8.1.5 | ||
| 1 | Amendments to CbCR Safe Harbour for 9.1 | ||
| 1 | Amendments to QDMTT Safe Harbour for 9.1 | ||
| 1 | Article 9.1 of the GloBE Rules | ||
| 1 | Central Record of Legislation with Transitional Qualified Status |
| Note | Thailand | |
|---|---|---|
| QDMTT?(Enacted/Draft) | Is there a QDMTT in the Legislation? | Yes – Enacted |
| Effective Date: | Accounting Periods beginning on or after January 1, 2025 | |
| Administrative Guidance/Safe Harbour Guidance? | Are the provisions of the OECD Administrative Guidance and Safe Harbour Guidance reflected in the current legislation? | No |
| Separate/Transposed QDMTT | Is the QDMTT a Separate QDMTT or a Transposition of the GloBE Rules (with Amendments) | Transposed |
| Domestic Groups | A QDMTT can also apply to purely domestic groups. | No |
| Scope Definitions | The definitions of Ultimate Parent Entity, MNE Group, and Constituent Entity correspond with the definitions in the GloBE Rules. | Transposed – 6.1 |
| Income and covered taxes of Constituent Entities | The QDMTT must compute the tax liability for the jurisdiction by taking into account the income and covered taxes of Constituent Entities under the GloBE Rules. | Transposed – 6.1 |
| Separate ETRs | A QDMTT must determine a separate ETR and Top-up Tax amount for MOCEs, Joint Ventures and JV Subsidiaries. | Transposed – 6.1 |
| Charging | A QDMTT must impose a Top-up Tax on one or more domestic Constituent Entities on the Excess Profits of all domestic Constituent Entities, including the domestic Parent Entity. | 6.1 |
| Enforceability | The legal liability for the domestic top-up tax needs to be enforceable against at least one Constituent Entity in the jurisdiction. | 6.1 |
| Different Accounting Standard? – Optional | Is the use of a local accounting standard optional? | No |
| Different Accounting Standard? – Mandatory | Is the AG2 guidance followed? | No |
| Different Accounting Standard? – Default GloBE rules | Do the general GloBE rules apply for the QDMTT accounting standard? | Yes |
| Require 100% ownership? | The QDMTT )can require 100% ownership | No |
| Differences to GloBE Rules: tighter restriction is consistent with local tax rules | The QDMTT can be more restrictive than the GloBE Rules where the tighter restriction is consistent with local tax rules. | None |
| Differences to GloBE Rules: Not relevant to in the context of its domestic tax system | The QDMTT can exclude adjustments that are not relevant to in the context of its domestic tax system. | None |
| Income/Loss of a PE | The QDMTT must exclude the income or loss of a foreign Permanent Establishment from the income or loss of the Main Entity. | Transposed – 6.1 |
| Tax Transparency | A QDMTT must include certain tax transparent provisions. | Transposed – 6.1 |
| Adjusted Covered Taxes Consistency | The range of taxes included in Covered Taxes needs to be the same or narrower, as under the GloBE rules. | Transposed – 6.1 |
| GloBE Loss Election? | Not Required in QDMTT | Transposed – 6.1 (Ministerial Regs required) |
| No Pushdown to CFC or PE | A QDMTT must exclude: (1) tax paid or incurred by a Constituent Entity-owner under a CFC Tax Regime that is pushed down to a domestic Constituent Entity in the GloBE Rules and (2) tax paid or incurred by a Main Entity that is allocated to a PE in the jurisdiction. | No |
| Exclude tax allocated to Hybrids | Second AG Guidance | No |
| Exclude allocated net basis tax on dividends (except WHT) | Second AG Guidance | No |
| UPE that is a Flow-Through Entity | Second AG Guidance | Transposed – 6.1 (Ministerial Regs required) |
| UPE subject to Deductible Dividend Regime | Second AG Guidance | Transposed – 6.1 (Ministerial Regs required) |
| Eligible Distribution Tax Systems | Second AG Guidance | Transposed – 6.1 (Ministerial Regs required) |
| ETR Computation for Investment Entities | Second AG Guidance | Transposed – 6.1 (Ministerial Regs required) |
| Investment Entity Tax Transparency Election | Second AG Guidance | Transposed – 6.1 (Ministerial Regs required) |
| Taxable Distribution Method Election | Second AG Guidance | Transposed – 6.1 (Ministerial Regs required) |
| Multi-Parented MNE Groups | Second AG Guidance | Transposed – 6.1 (Ministerial Regs required) |
| Additional Top-Up Tax/Excess Negative Tax Expense | A QDMTT needs to have provisions for additional top-up tax where there is no Net GloBE Income and the Adjusted Covered are less than zero and less than the Expected Adjusted Covered Taxes. Amount. Excess Negative Tax Carry-forward rules also need to be in place. | Transposed – 6.1 (Ministerial Regs required) |
| Modified Top-Up Tax Formula | The QDMTT top-up tax formula needs to be modified as the GloBE Rules subtract tax paid under a QDMTT from the current GloBE Top-up Tax. | 6.1 |
| Same Approach As GloBE Rules | A QDMTT must require that top-up tax is taken into account by the relevant Constituent Entity at the same time and in the same manner as under the GloBE Rules (eg it can’t be carried forward). | Transposed – 6.1 |
| SBIE Included? | Not Required in QDMTT | Transposed – 6.1 |
| SBIE Rates same as GloBE? | Not Required in QDMTT | Transposed – 6.1 |
| De Minimis Rule Included? | Not Required in QDMTT | Transposed – 6.1 (Ministerial Regs required) |
| Restructuring Rules? | A QDMTT needs to include restructuring rules as provided in the GloBE rules to the extent necessary to conform to the tax reorganization rules in the jurisdiction. | Transposed – 6.1 (Ministerial Regs required) |
| Safe Harbours? | A QDMTT needs to contain GloBE safe harbours. | Not yet provided |
| Deferred Tax Transition Rule? | A QDMTT must include the deferred tax starting point under Article 9.1.1 of the Model Rules. | Not yet provided |
| SBIE Transitional Rates? | Not Required in QDMTT | Not yet provided |
| Initial Phase of International Activity Exemption | Not Required in QDMTT | Not yet provided |
| Elections? | Where the GloBE Rules permit an election, a QDMTT must generally also provide for the election and require the MNE Group to make the same election under the QDMTT as is made under the GloBE Rules. | Transposed – 6.1 (Ministerial Regs required) |
| Deferred Tax transition: First time or refreshing rule? | Second AG | No |
| New transition year – amend tax attributes? | Second AG | No |
| Currency provisions? | Second AG | Not yet provided |
| DTL Recapture rules – Aggregate DTL Categories | Fourth AG, 1.2.8 | |
| DTL Recapture rules Unclaimed Accrual Five-Year Election | Fourth AG, 1.2.8 | |
| Reverse Hybrid Pushdown | Fourth AG, 5.6.2 | |
| Securitization Entities – A QDMTT may also exclude a Securitisation Entity from its scope | Fourth AG, 6.1.4 | |
| Securitization Entities – A jurisdiction may allocate the QDMTT liability for any QDMTT top-up tax to another Constituent Entity (if any) that is located in the jurisdiction | Fourth AG, 6.1.4 | |
| Note |
TO DO
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