The International Commitments of Thailand on Taxation: A Case Study of Tax Cooperation Mechanisms with the Organization for Economic Cooperation and Development (OECD)

Abstract

This research examines concepts, principles and norms of taxation established under the  tax cooperation mechanism of the Organization for Economic Co-operation and Development (OECD) which aims to shape a new world tax order in the digital economy era. A comparative study was employed in this research, comparing tax concepts, principles and norms established under the tax cooperation mechanisms of the OECD with respect to the relevant legal regulations of Thailand in order to analyze the legal impacts that potentially arise from participating within such cooperation mechanisms. From the study it was determined that a wide range of countries, both from OECD member states and from non-OECD member states, have participated in OECD’s tax cooperation mechanisms. Even though Thailand is not a member of the OECD, its voluntary intention to participate in OECD’s cooperation mechanisms will expose Thailand to possible obligations arising from such international tax cooperation mechanisms, whether in terms of an explicit legally enforceable obligation or that which is more grounded in a moral force obligation. Ultimately this may lead to the consideration of amending domestic laws, including relevant international agreements, so that they are aligned with the new global tax rules that have been established as a result of the OECD’s tax cooperation mechanisms.