Blumenthal Richter Sumet & Schuler Ltd.

On January 1, 2025, Thailand’s Revenue Department began enforcing the Emergency Decree on Top-up Tax B.E. 2567 (2024), marking a significant step for Thailand toward implementing the OECD’s Global Anti-Base Erosion Model Rules under Pillar Two. This issuance aims to reduce tax competitions among countries by ensuring that in-scope multinational enterprise (MNE) groups are subject to an effective tax rate (ETR) of at least 15%. Under this Emergency Decree, Thailand’s Revenue Department is authorized to collect Top-up Tax from MNEs operating in Thailand where the applicable ETR falls below the minimum threshold. This introduction may inevitably raise concerns among MNEs that have benefited under Thailand’s Board of Investment (BOI) as the BOI-granted tax incentives may trigger additional Top-up Tax liabilities. In response, on November 12, 2025, the BOI, in collaboration with the Ministry of Finance, announced that it is in the process of revising the National Competitiveness Enhancement for Targeted Industries Act B.E. 2560 (2017) by introducing a Qualified Refundable Tax Credit (QRTC), which is a mechanism recognized by the OECD. This new form of incentive reflects a policy response aimed at aligning Thailand’s investment promotion regime with the OECD’s global minimum tax framework. However, this incentive is intended to be offered as an alternative measure for MNEs affected by the Emergency Decree, not to replace the offering of incentives. This means that investors who are not subject to the Emergency Decree can continuously benefit from the BOI-granted incentives as in the past. Furthermore, on December 30, 2025, Thailand’s Cabinet approved four draft secondary legislations issued in pursuance to the Emergency Decree, which were developed in accordance with the OECD’s GloBE Model Rules and Commentaries, with the objectives of ensuring consistency with the international practices. The approved drafts address the detailed rules, including but not limited to the determination of in-scope MNEs and the approach for calculating Top-up Tax liabilities that such taxpayers are subject to under the Emergency Decree. The four draft laws are as follows: Royal Decree prescribing the criteria for determining whether multinational enterprise groups that have undergone organizational restructuring are subject to the Top-up Tax; Ministerial Regulation prescribing the criteria concerning entities that are not constituent entities; Ministerial Regulation prescribing the criteria for allocating Top-up Tax to Thailand under the Undertaxed Payments Rule (UTPR) mechanism in cases where no constituent enterprise group located in Thailand has GloBE income; and Ministerial Regulation prescribing the criteria for adjusting income, expenses, and covered taxes for the calculation of the Top-up Tax, including the criteria for calculating the Domestic Top-up Tax in Thailand. Overall, these developments signal Thailand’s progress toward implementing the global minimum tax framework. However, further updates on their key aspects will be provided once the detailed rules become available. Article by Senior Partner Sumet Mingmongkolmitr

September 22, 2025 Sumet Mingmolmolmitr (Senior Partner)  Companies in Thailand are encouraged to support their employees in pursuing higher education or other training programmes. Such initiatives not only enhance employees’ skills but also strengthen the company’s long-term growth and profitability. To promote this, the Revenue Department issued Order No. 122/2545, Re: Exemption of Income Tax Calculated from the Net Profit of Companies or Registered Partnerships Operating Businesses as Educational Institutions and Training Centres for Enhancing Employees’ Skills, and from Expenses on Education Purposes Made by Companies or Registered Partnerships dated 27 December 2002. Deductible Expenses Under this order, companies may fully deduct expenses incurred in supporting employees who: pursue further studies or training at public institutions or centres domestically or internationally; pursue further studies or training at private institutions or centres domestically or internationally; or participate in in-house-training sessions organised by the company itself or by an external service provider. These expenses are not considered prohibited under Section 65 Ter (13) of the Thai Revenue Code. To qualify for the deduction, however, the company must be able to demonstrate that the expenses were incurred for the company’s benefit, and the supported employees are required to return to work for the company. Additional Tax Incentive In addition, companies that provides financial support for employees to study or train at:  Government-established institutions or training centres, or  Institutions announced by the Ministry of Finance in the Royal Gazette, are also eligible to fully claim a tax exemption on its income equal to the amount paid for the employees’ education or training. This incentive is granted under the Royal Decree issued pursuant to the Revenue Code Governing the Exemption from Revenue Taxes (No. 437) dated 15 October 2005. These provisions highlight the Thai government’s commitment to encouraging workforce development while offering companies meaningful tax relief. To further navigate the rules and maximize available benefits, companies are encouraged to consult with a qualified tax counsel.

Bangkok, 29 April 2025 — Blumenthal Richter & Sumet (BRS) has officially been appointment as the Overseas Intellectual Property Service Provider for the Shenzhen (Nanshan) – Thailand corridor. This designation reinforces BRS’s growing role in supporting Chinese enterprises investing and expanding in Thailand and Southeast Asia. The appointment was formalized at the launch ceremony of the “Go Global” International Service Center on April 29, 2025, attended by Tongxin Xie, Head of the Chinese Desk at BRS, and Ekkarat Ritthiplang, Partner of the firm. The Go Global Center is a strategic initiative led by the Nanshan District Government, aiming to support Chinese enterprises in their internationalization through a platform that integrates policy support, professional services, and global networks. As an Overseas IP Service Provider, BRS will provide legal and strategic support to Chinese companies—particularly those from Shenzhen and the Greater Bay Area—in key areas such as cross-border IP protection, regulatory compliance, outbound investment, and international transactions. Through the Go Global platform, BRS will offer tailored legal and business services to help clients enter and expand in the Thai and broader Southeast Asian markets. “As one of the first professional service providers appointed under this initiative, we are honored to contribute to the success of Chinese enterprises abroad,” said Tongxin Xie. “Our aim is to deliver clear, effective legal solutions in IP protection, compliance, and dispute resolution for both Chinese and Thai clients.” Following the ceremony, the BRS delegation was invited to visit the Nanshan Intellectual Property Protection Center, a pioneering facility that integrates administrative and judicial mechanisms to streamline IP dispute resolution. Under the leadership of Senior Partner Andreas Richter, BRS’s China Desk has long advised Chinese clients across sectors such as manufacturing, technology, energy, and infrastructure on establishing and expanding operations in Thailand. BRS also supports Thai companies seeking entry into the Chinese market, further enhancing its role as a cross-border legal bridge between the two countries.