accountants and business advisers
02 Mar 2018
On 3rd January 2018, the Thailand’s Cabinet approved the draft Transfer Pricing Law and it is effective for tax year 2017. This means that any company with revenues “not less than 30m” must complete a Transfer Pricing Disclosure Form, and Transfer Pricing Documentation with their tax return of 2017.
What Tax Payers must prepare
Taxpayers must prepare a “Transfer Pricing Disclosure Form” and submit in to the Thai Revenue Department (TRD) along with their annual corporate income tax return filing as per the form stipulated by the Director-General. Interesting, as at the end of February 2018, this form had not yet been announced by TRD.
The form must include, but is not limited to, descriptions of relationships of relevant related parties in terms of ownership, management or control and the total amount of related transactions in each accounting year.
Failure to provide the required disclosure statement or the filing of incomplete or false statements in the disclosure statement will result in penalties to a maximum of 200,000 THB.
In Addition, the Tax Payers must prepare “Transfer Pricing Documentation” to disclose evidence of information needed for analysing the transactions of related companies. The Tax Payers must maintain such documentation in place for at least 5 years from the date of submission of the transfer pricing disclosure form.
How our Transfer Pricing team can help:
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