Share with your friends

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.


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

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.

Connect with us


Want to do business with KPMG?


loading image Request for proposal