Thailand: Transfer Pricing Legislation


published on December 4, 2018


On 5th June 2018, the Thai government presented a draft act to amend the Thai Revenue Code (Act) regarding transfer pricing. The Act will add various transfer pricing provisions to the Revenue Code and will apply for fiscal years beginning on or after 1st January 2019.


With pending changes to the final version of the Act, corporate taxpayers will be required to submit a disclosure statement with their annual corporate income tax return. Corporate taxpayers exceeding an income threshold (current proposal: THB 30,000,000 or USD 930,000) will be required to disclose their relationships with affiliated/related companies regarding ownership and control as well as value of conducted transactions. The disclosure obligation does not depend on whether the relationship existed throughout the entire accounting period or whether the companies entered into the corresponding relationships at any time during the year.    
Tax authorities will be authorized to adjust transactions between related parties if such transactions are not considered to be at arm's length. The tax authorities may request documents for this purpose, and any non-compliance with the annual disclosure statement will be liable to a fine of THB 200,000. The first statements must be prepared on 30th May 2020 for the tax year ending 31st December 2019, and on 28th August 2020 for the tax year ending on 31st March 2020.



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