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22 October 2021 Thailand publishes mandatory requirements for Thai transfer pricing documentation The Thai Revenue Department published the Notification of Director-General of Revenue Department No. 407 (the Notice) on 30 September 2021, outlining the information that must be included in transfer pricing (TP) documentation when it is requested by the Revenue Department. Under Thai tax law, TP documentation is not required to be filed with the transfer pricing disclosure form.[i] However, the TP documentation is generally required to be provided within 120 days of receiving a request from the Revenue Department (or 180 days if it is a first-time request under the new TP Act, which is applicable for the first fiscal year starting on or after 1 January 2019).[ii] This Alert summarizes the key TP documentation requirements applicable to fiscal years starting on or after 1 January 2021.
The Notice only applies to TP documentation prepared for fiscal years starting on or after 1 January 2021. Therefore, TP documentation for fiscal years ending before 31 December 2021, which is prepared in English or Thai and is based on the TP guidelines (Paw 113/2545), should be acceptable to the Revenue Department. The taxpayer’s total revenue of the fiscal year is less than THB500 million (US$15 million), the taxpayer has only domestic related-party transactions, neither the taxpayer nor any of the relevant counter-parties have loss carryforwards for corporate income tax computation purposes and all are subject to the same corporate income tax rate. The transactions are covered transactions under a bilateral Advanced Pricing Agreement (APA) concluded with the Thai Revenue Department, and the relevant fiscal year is covered by the APA. Thai companies should review their Thai TP documentation processes and procedures to ensure compliance with the requirements of the Notice.
See EY Global Tax Alert, Thailand publishes transfer pricing disclosure form, dated 27 November 2019. See EY Global Tax Alert, Thailand enacts Transfer Pricing Act, dated 3 December 2018. Document ID: 2021-6082 |