The Thai Revenue Department released a transfer pricing disclosure form to be filed by certain corporate taxpayers.
The form is to be filed by corporate taxpayers having revenues of at least THB 200 million (approximately U.S. $6.6 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:
Read a November 2019 report prepared by the KPMG member firm in Thailand
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.