New Taxes And Wage Hikes Implemented To Boost Thai Economy In 2025

In January 2025, Thailand implemented two major economic policies aimed at improving financial conditions for citizens and increasing government revenue. With adjustments made to the national minimum daily wage and Thailand’s corporate income tax structure, the government hopes to ease the burden of living costs on workers and secure fair contributions from businesses.

Thailand’s Minimum Daily Wage Increase

To address the rising cost of living in Thailand, the government has increased the national minimum daily wage range from 337 to 400 THB. This will increase the pay of workers in industries such as hospitality and manufacturing, which should then lead to increased purchasing power in the country and drive the demand for goods and services. Thus, stimulating local economies.  

For employees, the policy will ease the financial pressure caused by the rising cost of living and open doors for them to afford better housing, education, and healthcare. 

For businesses, especially those in labor-intensive sectors, the policy presents challenges through added financial strain. While large corporations may have the resources to absorb these costs, smaller and medium-sized enterprises (SMEs) could be forced into situations where they would need to make difficult operational decisions. This includes laying off employees and increasing the price of their services and products to consumers.

However, there are potential upsides to this increase. It is hoped that as locals will have more money, they will spend more money, injecting revenue into not just tourist-focused businesses but all across the Thai economy. As the wage increases primarily affect industries that typically sell to or service foreigners, it is these foreigners that must absorb the increased costs while local Thai businesses benefit from increased spending. 

Minimum Daily Wage Table

The minimum wage hike is not universal across all regions and industries. Depending on the province and the city, the minimum daily wage set amount will vary, as shown in the table below:

Thailand’s Global Minimum Corporate Tax Rate

Another major economic policy the government has implemented for 2025 is the commitment to following the global minimum corporate tax rate of 15% for multinational companies. This measure aligns with international efforts led by the Organization of Economic Co-operation and Development (OECD) to prevent profit shifting and tax avoidance.

Under this policy, all multinational corporations earning at least 750,000,000 EUR annually will be required to pay the minimum tax rate, regardless of their operating location. Corporations that transfer their profits to subsidiaries located in countries with tax rates lower than 15% will still be responsible for paying the difference in taxation, known as a “top-up tax.” The revenue earned from the tax will be used to improve public services and infrastructure in Thailand, as well as fund economic development programs. 

While the policy promotes fairness and reduces opportunities for tax loopholes, it may deter foreign investment in Thailand if companies view the policy to be overly restrictive. Companies that are accustomed to lower tax rates may also reassess their operations in the country, which could negatively affect the Thai economy.

However, it should be noted that the average corporate tax rate in Thailand is actually higher than 15%. This means that some local businesses could see their taxes actually decrease with these new rules. By instead targeting corporations that move profits to tax havens, the Thai government hopes to increase revenue without harming their long-term profitability.

Professional Tax Consulting Services in Thailand

If you are in need of assistance with understanding your tax obligations or adapting to the new policies in Thailand, get in touch with Siam Legal International. We are a full-service law firm and visa consultancy in Thailand with over 20 years of experience in helping both local and foreign clients with their immigration and legal needs, including tax-related matters. 

Whether you’re preparing to file a tax return for your personal income tax in Thailand, have questions about your company’s Thai corporate income tax, or want to discover the tax incentives and benefits you qualify for, we can help. Our team of expert tax professionals will guide you through the nuances of Thailand’s changing tax laws so you can maximize your benefits and legally minimize your tax burden. 

By partnering with Siam Legal, you can steer clear of legal issues during the Thai tax season, reduce the chances of unintentional tax fraud, and keep more of your hard-earned income secure.

For a better understanding of your tax obligations or to begin the process of filing your tax return in Thailand, do not hesitate to contact Siam Legal to book a consultation now!

Category: Thailand Tax