Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

January 20, 2022
2022-5077

Thailand extends deadline for submission of transfer pricing Country-by-Country reports

Executive summary

The Thai Ministry of Finance enacted a Notification on 23 December 2021 (the Notification), announcing an extension of the deadline for submission of Thai transfer pricing Country-by-Country (CbC) reports in Thailand, applicable to fiscal years starting on or after 1 January 2021. The Notification is enacted to ensure that Thailand’s CbC report submission deadline is consistent with internationally accepted standards.

This Alert summarizes the key updates with respect to the CbC report submission deadline.

Detailed discussion

Prior to the Notification, a multinational enterprise (MNE) group with consolidated revenue of not less than THB28,000 million (US$840 million) in the immediately preceding fiscal year was required to submit a CbC report together with the annual corporate income tax return within 150 days from the fiscal year-end.1 The CbC report submission deadline has now been extended by the Notification as follows:

  1. Within 12 months from the fiscal year-end for the Thai ultimate parent entity (UPE) or Thai surrogate entity (SE).

  2. Within 60 days after it is requested by an assessment officer for a subsidiary carrying on business in Thailand (other than a Thai SE), if any of the following applies:

    - The UPE is not required to file CbC reports in its tax residence jurisdiction

    - The UPE is a tax resident of a jurisdiction which does not have an effective exchange of information arrangements with Thailand

    - Automatic exchange of information between the jurisdictions is not possible due to other reasons

Implications

Thai companies and MNE groups with Thai subsidiaries should review their CbC reporting deadline to ensure compliance with the requirements of the Notification. The extended CbC report submission deadline aligns with international standards and offers more flexibility to MNEs for their CbC reporting purposes. Considering that the CbC reporting requirements in Thailand apply from 1 September 2021, the first primary CbC reporting will be due by 31 December 2022.

The Notification is also beneficial for Thai subsidiaries (other than an SE) who are required to file a CbC report in Thailand as the filing is now required only upon request by the Thai tax authorities, with a 60-day timeline to meet such request.

The Notification does not address whether the deadline for a Thai subsidiary to notify the competent Thai authority of the UPE’s appointment of a foreign SE is extended.

_________________________________________

For additional information with respect to this Alert, please contact the following:

EY Corporate Services Limited, Bangkok

Ernst & Young LLP (United States), Thai Tax Desk, New York

Ernst & Young LLP (United States), Asia Pacific Business Group, New York

Ernst & Young LLP (United States), Asia Pacific Business Group, Chicago

_________________________________________

Endnotes

  1. Notification of the Director-General on Income Tax No. 408 (DGN 408). See EY Global Tax Alert, Thailand publishes mandatory requirements for submission of Thai transfer pricing Country-by-Country reports, dated 4 November 2021.

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more