The Thai Revenue Department announced a public hearing with respect to draft transfer pricing rules. Comments are requested by 7 July 2017.
The draft transfer pricing measures were approved by the Thai cabinet in May 2015, thereby sending the draft to the National Council of State (Krisdika). The draft measures were then recently approved by Krisdika and are now in the public consultation process (pursuant to constitutional laws). As the final step, the draft would need to be passed to national legislative assembly for enactment.
The aim of these transfer pricing provisions would be to prevent tax evasion from transfer prices applied to transactions between related parties; to provide standard guidelines as to how to determine a market price that is in line with international standards; and to achieve fairness in taxation.
Draft transfer pricing legislation would add new provisions (section 35 ter, section 71 ter, and section 71 bis) to the Thai Revenue Code. Key aspects of the proposals include:
Tax professionals believe that finalization and enactment of the transfer pricing regime is imminent, and therefore urge taxpayers with related-party transactions to take time now to:
Read a June 2017 report prepared by the KPMG member firm in Thailand
Read a July 2017 report prepared by the KPMG member firm in Thailand
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