Thailand: Functional currency for income tax purposes

Thailand: Functional currency for income tax purposes

The Director-General of the Thai Revenue Department in late May 2020 issued a notice (No. 373) to provide guidelines on the requirements for application of companies and juristic partnerships to adopt a currency other than Thai Baht as their functional currency for income tax purposes.

1000

Related content

  • Change of functional currency from Thai Baht to other currency: Companies or juristic partnerships that adopt a currency other than the Thai Baht as a functional currency for purposes of income tax compliance must comply with certain requirements. For instance, the functional currency must be adopted for accounting report preparation and in accordance with accounting principles and certified by a certified auditor or a certified tax auditor that the currency is the functional currency. Also, the functional currency must be one listed prescribed by the Ministry of Finance, and there are other requirements to be satisfied.
  • Subsequent change of the functional currency: Companies or juristic partnerships that have provided notice of the adoption of a currency other than the Thai Baht as the functional currency and that subsequently seek to change the functional currency must comply with additional requirements.
  • Conversion of cash, assets or liabilities using exchange rates other than those from the Bank of Thailand: Companies or juristic partnerships that seek to convert cash, assets or liabilities remaining in the last day of accounting period into the functional currency by using exchange rates that are not ascertained from the Bank of Thailand must comply with other requirements.


Read a June 2020 report prepared by the KPMG member firm in Thailand

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.


For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal