After the public consultation and approval from the council of state (Krisdika), the Cabinet of Thailand has recently approved the draft transfer pricing law referring to the cabinet meeting on 3 January 2018. The recent draft has been revised to include additional requirements as outlined below: 

• The minimum income threshold for taxpayers in an accounting period to be eligible for the exemption from preparing a report on relationship between companies and the amount of related party transactions (“collectively referred to as transfer pricing disclosure form”) will be not less than 30 million baht.  The government may announce the detail later in Ministerial Regulation; and
• The new transfer pricing law will be applicable for accounting periods beginning on or after 1 January 2017 which results in the first filing date of the transfer pricing disclosure form will be on 31 May 2018 (for 1 January – 31 December 2017).
• The statutory limitation period for a tax officer to request the related company to submit the information and evidence of information needed for analyzing the transaction of related company, also known as transfer pricing documentation, within 5 years from the date of submission of transfer pricing disclosure form

For the next step, the draft transfer pricing law will be submitted to the parliament (i.e. national assembly legislator). 

Pro-active preparation of robust transfer pricing analysis and documentation will be essential to manage the transfer pricing risks as well as discuss  with the tax authorities on future proposed adjustments and reduced penalties.

KPMG professionals in the Transfer Pricing group advise multinational corporations investing inbound and Thai corporations investing outbound on transfer pricing solutions to their value chain issues. Our Transfer Pricing team is prepared to provide risk assessment reports in line with your global transfer pricing strategy to enable you to navigate through the complex and fast-changing transfer pricing environment resulting from the new regulatory changes in Thailand as well as to support you preparing transfer pricing documentation under the new requirements.