In 2025, Thailand is implementing several legal changes that will significantly impact businesses operating in the country. These changes focus on taxation, foreign investment, and environmental regulations, among others. Here’s a rundown of the key legal developments:
1. Global Minimum Corporate Tax Rate
Starting in January 2025, Thailand will adopt the OECD’s global minimum tax rate of 15% for multinational enterprises (MNEs) with annual revenues exceeding €750 million. This tax reform ensures that MNEs pay at least 15% in taxes, even if they operate in countries with lower tax rates. The Revenue Department will oversee the enforcement and implementation of this policy, which will require businesses to carefully assess their tax obligations across different jurisdictions to avoid penalties for underreporting.
2. Taxation of Worldwide Income for Thai Residents
A significant overhaul in personal income tax laws will see Thai residents being taxed on their global income. Previously, Thailand only taxed income earned within the country or remitted to it. As of 2025, individuals who spend over 180 days a year in Thailand will be required to pay taxes on income earned outside the country, making it critical for both local and foreign businesses to stay informed about changes affecting employees and stakeholders with global earnings.
3. New Financial Business Law to Attract Foreign Investment
A new law is set to promote Thailand as a global financial hub by creating a “one-stop authority” for business operators in financial sectors such as banking, securities, and digital assets. This initiative is designed to streamline regulatory processes and attract foreign investments, particularly in the digital economy. Businesses in finance-related sectors will benefit from tax incentives and regulatory support, offering them greater opportunities to grow and expand within Thailand’s market.
4. Legalization of Casinos
A major development in Thailand’s tourism and entertainment sectors is the legalization of casinos, which is set to begin in 2025. The government plans to establish casinos within larger entertainment complexes that may include hotels, shopping malls, or convention centers. This move is expected to boost tourism and increase revenue from gambling-related activities. Thai nationals will pay an entrance fee, while foreigners will be able to enter free of charge. Businesses involved in hospitality, retail, and entertainment should be ready for new opportunities and challenges as the casino industry emerges.
5. Clean Air Act
Environmental regulation will also see significant changes with the expected passage of the Clean Air Act by April 2025. This new law aims to reduce pollution levels and enforce stricter air quality standards across industries that contribute to air pollution, such as manufacturing, construction, and transportation. Businesses that operate in these sectors will need to implement measures to comply with these new standards to avoid penalties and contribute to Thailand’s sustainability goals.
6. Crackdown on Online Scam Networks
Thailand is taking a tougher stance against online scams, especially those originating from neighboring Myanmar. Authorities have started cutting off power supplies to border towns involved in fraudulent activities. Businesses engaged in cross-border e-commerce, digital services, or financial transactions need to be aware of heightened enforcement efforts and the risk of fraud affecting operations in the region.
Conclusion
The legal changes in Thailand for 2025 are designed to modernize the country’s business landscape, attract foreign investment, and improve the environment. Businesses need to adjust their strategies to comply with new tax laws, environmental regulations, and the introduction of gambling tourism. Staying informed and adapting to these changes will be crucial for long-term success in the Thai market.