accountants and business advisers
11 Sep 2018
Proposed new transfer pricing laws for Thailand are expected be enacted within 2018 and take effect starting on or after 1 January 2019. Although the chances to the Thai Revenue Code have been predicted since mid-2017, the legislative process seems finally set to ratify these inevitable compliance requirements to help bring Thailand more in line with global standards.
Thailand’s current transfer pricing guidelines are relatively vague in terms of compliance compared to many other countries, as there is currently still no statutory requirement for corporate tax payers to file a specific annual transfer pricing return as part of annual statutory filings. The new transfer pricing law was sanctioned by Thai Cabinet in January 2018. A draft has been finalised by the Thai Revenue Department and on 5 June 2018 was proposed to the National Legislative Assembly for consideration and approval. The new law on transfer pricing is anticipated to be enforceable in accounting periods beginning on or after 1 January 2019.
Some of the key conditions expected under the new transfer pricing laws are summarized below for your reference:
Tax payers will be subject to a maximum fine of THB 200,000 in the event that they do not comply with the new transfer pricing disclosure requirements, or submit incorrect or incomplete information to the Thai Revenue Department.
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