The Thai Cabinet on Tuesday provisionally approved the draft National Competitiveness Enhancement for Targeted Industries Bill, aimed at reducing the impact of Thailand’s newly enacted “Top-Up Tax” on affected companies :contentReference[oaicite:0]{index=0}.

This so-called Top-Up Tax, formalised under an emergency decree in late December 2024 and effective from 1 January 2025, enforces a fifteen-percent minimum corporate income tax on multinational enterprises whose consolidated group revenues reach at least €750 million in at least two of the past four fiscal years — a cornerstone of Thailand’s adoption of Pillar Two under the OECD’s global minimum tax initiative :contentReference[oaicite:1]{index=1}.

To soften the burden on enterprises, the draft law introduces an array of tax credit incentives. Qualifying “promoted companies” can claim credits related to spending on research and development, advanced skills training, efficiency improvements, and sustainable projects. These credits may be used to offset tax obligations, or, if unused, can be redeemed in cash — subject to approval by a dedicated commission overseeing disbursements from the Competitiveness Enhancement Fund :contentReference[oaicite:2]{index=2}.

Promotion incentives can be accessed via applications to the Board of Investment, which in coordination with the Finance Ministry, will manage both refunds and information sharing. The government is mandated to ensure adequate budget allocation to the Fund to sustain these refunds. The commission retains authority to revoke improperly granted benefits, including retroactive cancellations under applicable tax law :contentReference[oaicite:3]{index=3}.

These reforms are part of Thailand’s broader strategy to remain competitive internationally while upholding tax fairness. The move aligns with global standards and ensures that incentives remain targeted and transparent under the new Pillar Two tax landscape :contentReference[oaicite:4]{index=4}.

Global Tax Reform Context

Thailand’s emergency decree on Top-Up Tax mirrors similar reforms in other Southeast Asian economies such as Vietnam, Malaysia, Singapore, and Indonesia — all implementing the 15-percent global minimum tax to align with OECD mandates :contentReference[oaicite:5]{index=5}. The Cabinet’s action ensures Thailand offers balanced support to affected industries without compromising fiscal reform and global tax compliance.