Investment in Thailand: Heading for OECD Membership - Will the Ban on Trade and Services for Foreigners be Lifted?

Furthermore, Thailand views OECD membership as a strategic step toward achieving its goal of becoming a high-income nation by 2037.

Starting in December 2025, up to 30 OECD bodies will begin reviewing the accession criteria. For Thailand, this is a challenge: around 220 obsolescent or protectionist laws need to be amended. Therefore, a steering committee has been set up to coordinate the entire process.

But is this a realistic goal? And what challenges does Thailand face? What does this mean for investors now? The Sanet Group, a central point of contact for investment in Thailand and business consulting, provides an overview.

• An important step has already been taken: the introduction of a global minimum corporate tax rate of 15% for multinational companies with global revenues exceeding €750 million was a requirement of the OECD.

• This is not necessarily good news for investors in Thailand. It means that tax privileges and complete tax exemptions for corporations exceeding this revenue threshold will be restricted. For years, the country had specifically granted comprehensive tax exemptions through its Board of Investment (BOI) in order to attract technology-oriented and innovative companies.

• The good news, however, is that many SMEs are likely to remain below this revenue threshold and could therefore even benefit from tax breaks.

• Many companies investing in Thailand will also benefit from the removal of protectionist measures for certain industries that serve to protect the domestic economy from international competition. Currently, there are three long lists of sectors in the Foreign Business Act, which include trade and services that are generally prohibited for foreigners.

• Consequently, on the other hand, the pressure to modernize previously protected sectors in the country is growing.

• The introduction of new regulatory requirements by the OECD could lead to higher compliance costs for domestic and foreign investors alike, for example in environmental law, tax disclosure requirements, or labor standards.

• Significant changes are also ahead in areas such as digitalization, cybersecurity, and environmental protection.

• Effective anti-corruption mechanisms need to be put in place to improve trust in public administration.

Thailand is therefore at a crossroads. If full membership is to be achieved on schedule by 2030, the pressure on the country for reform will be high.

The question it faces is whether the political will and support from the domestic economic sector are strong enough to meet the OECD requirements. If so, Thailand will achieve its key objectives:

• Investor trust is strengthened by a sound legal framework, increased transparency, and a more efficient administration.

• Reforms in governance and legal predictability are creating a more stable environment for long-term business and fiscal planning.

• Growing competition fosters innovation and sustainable growth.

If politicians and business leaders shy away from the associated risks, Thailand will find itself in a difficult position against its ambitious neighbours Vietnam, Malaysia, and the Philippines.