Global Daily Tax News, OECD Recommends Permanent Tax Hikes For Thailand, (Jul 28, 2025)

The OECD has recommended a series of tax regime changes for Thailand to fund improvements to the nation's social protection systems and future-proof the country's finances.

In a new report prepared for the nation, the OECD has provided a comprehensive assessment of Thailand's social protection system and examined strategies to enhance benefit levels and expand coverage in areas beyond healthcare.

The report explores potential tax policy reforms to social security contributions, the value-added tax, corporate and personal income taxes, and health and environmental taxes, to mobilize additional tax revenue. The report also assesses measures to expand social insurance, including through the introduction of a presumptive tax regime.

The report concludes that, in the medium to long term, domestic revenue mobilization and formalization efforts will become increasingly crucial as social protection financing needs are expected to rise significantly due to rapid population ageing and the impacts of climate change.