The National Tax Service said on the 30th it has begun supporting the resolution of tax difficulties faced by Korean corporations operating in Thailand by sharing tax administration experience with Thai tax authorities. It delivered cases of Korean corporations that have not received tax refunds for years to the Thai side and asked for solutions.
On the 27th, the National Tax Service visited the Thai Revenue Department to share experience with legislating and operating the global minimum tax return system and discussed cooperation plans between the two tax authorities. The global minimum tax is a system that requires multinational corporations to pay additional taxes to make up the shortfall if the tax paid in each country falls short of 15%. Korea became the first in the world to legislate and operate this system in Dec. 2022. The National Tax Service shared the know-how it has accumulated with the Thai side.
It also conveyed the tax difficulties of Korean corporations operating in Thailand. Manufacturer A applied for a withholding tax refund in May 2023 with the required documents but has not yet received the refund. Exporter B is also facing difficulties in cash management as processing of value-added taxes refunds has been delayed for months.
The Thai side agreed to actively cooperate to ensure smooth tax filings by Korean corporations and stable local operations. The two tax authorities also agreed to establish a tax administration support hotline through which the tax difficulties of local corporations can be delivered directly to the Thai Revenue Department.
The National Tax Service also asked Thailand to swiftly join the automatic information exchange agreement for the global minimum tax to reduce the taxpayer burden.
A National Tax Service official said, "We will continue to actively share the experience and know-how gained by implementing the global minimum tax first and strengthen cooperation between tax authorities," adding, "We plan to create a tax administration environment in which our corporations can focus on business activities stably even locally without tax-related uncertainties."