The Thai Revenue Department (TRD) released a transfer pricing disclosure form to be filed by corporate taxpayers having revenues of at least THB 200 million or more per accounting year. The subject taxpayers with fiscal years beginning on or after 1 January 2019 then must submit the transfer pricing disclosure form to the tax authority within 150 days after the last day of the accounting period. A failure to report related-party transactions or to provide complete and accurate transfer pricing information and disclosures may be subject to a penalty assessment.
Information to be provided on the transfer pricing disclosure form includes:
The Thai tax authority may use information provided on the transfer pricing disclosure form to evaluate the level of related-party transactions, whether profits have been transferred out of Thailand, and those related-party transactions that may be the focus of transfer pricing audits. Other information may lead to more specific aspects of transfer pricing issues. For instance, taxpayers that have responsibility to prepare consolidated financial information and if a threshold is satisfied, would need to prepare a Master file as per base erosion and profit shifting (BEPS) Action 13 recommendations. Any business restructuring and intangible property transfer could possibly result in a special transfer pricing and tax investigation.
Accordingly, in preparing the transfer pricing disclosure form, taxpayers may want to consider the following actions: