Thailand: Automatic exchange of information (AEOI); actions by financial institutions expected beginning 2022

Beginning 1 January 2022, financial institutions will be required to collect and share financial account and tax information

AEOI, actions by financial institutions expected beginning 2022

Financial institutions in Thailand—beginning 1 January 2022—will be required to collect and share financial account and tax information with the Thai Revenue Department in order to comply with the automatic exchange of information (AEOI) requirements set by the Convention on Mutual Administrative Assistance in Tax Matters (MAAC) (the multilateral treaty developed by the OECD and the EU Council), assuming there is timely ratification of the MAAC.

Thailand in June 2020 signed the MAAC; however, Thailand did not ratify the MAAC by the 31 August 2021 deadline. As a result, Thailand was included in Annex II on the EU’s list of non-cooperative (grey list) jurisdictions for tax purposes.

Thailand has until 31 December 2021 to ratify the MAAC to avoid being included in Annex I as a non-cooperative (black list) country for tax purposes and thus subject to punitive measures including the denial of deductions for payments made, increased withholding taxes, application of controlled foreign company rules, taxation of dividends, and administrative measures.

Thailand has committed to undertake its first exchange of information by 30 September 2023, meaning financial institutions (such as banks, insurance companies or investment companies) would be required to collect the relevant information from 1 January 2022.

Read a November 2021 report prepared by the KPMG member firm in Thailand

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