The National Tax Service (NTS) has shared its tax administration experience with the Thai Revenue Department and addressed tax-related issues faced by local businesses, establishing a tax support hotline between the two countries.
On August 27, the NTS visited Thailand to share its experiences in implementing global minimum tax legislation and reporting systems. The global minimum tax applies to multinational corporate groups with revenues exceeding €750 million, taxing the difference if the effective tax rate falls below the minimum rate of 15%.
This visit was organized as Thailand prepares to implement the global minimum tax next year, seeking insights from South Korea, which received its first reports this year.
Prior to the visit, the NTS gathered information on tax inquiries and issues faced by South Korean companies operating in Thailand through the Korea-Thailand Chamber of Commerce and the Korea Trade-Investment Promotion Agency (KOTRA).
A local manufacturing company reported that it has not received a tax refund from the Thai Revenue Department since May 2023, despite submitting the necessary documents for a refund of withholding tax paid on processing fees received from clients.
Another exporting company is experiencing delays in value-added tax refunds due to the Thai Revenue Department's processing being behind schedule, impacting its cash flow.
The NTS conveyed these cases to the Thai authorities and requested their cooperation. Additionally, it encouraged Thailand to join the automatic information exchange agreement on global minimum tax to ease taxpayer burdens. A hotline for tax support between South Korea and Thailand will also be established to directly relay local business concerns to the Thai Revenue Department.
The Thai Revenue Department has agreed to review the inquiries and issues raised and will cooperate to ensure smooth tax reporting and stable operations for South Korean companies in Thailand.
* This article has been translated by AI.
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