Director-General (“DG”) of the Thai Revenue Department (“TRD”) has released the Notification of Director-General of TRD on Official Transfer Pricing (“TP”) Form (referred to Paragraph 1 of Section 71 ter of the Thai Revenue Code).  This Form is applicable to Thai tax entities that have total revenue of THB 200 million or more per one accounting year.  The Form must be submitted to the TRD within 150 days after the last date of accounting period. The requirement to submit the TP Disclosure Form becomes effective for corporate tax payers with fiscal years beginning on 1 January 2019 or later.  Please click the link to go to the official TP Disclosure Form and please feel free to contact us for the unofficial English translation of TP Disclosure Form for your information.

According to the TP Disclosure Form, the key information that the TRD would like to obtain from taxpayers consists of followings: 

1. List of related parties;
2. The value of related-party transactions separated by (i) domestic versus overseas, (ii) income versus expenses, and (iii) more detailed expenses classified based on nature (i.e. expenses for purchasing raw materials/goods, land, building and equipment, including royalties, management/technical service /commission fees, interest expenses and other expenses);
3. Some key yes/no questions on (i) responsibility on consolidated financial information, (ii) business restructuring between related parties and (iii) sale/distribution/transfer of intangible assets between related parties.

As failure to report the related-party transactions or provide complete and accurate TP information and documentation may give rise to a fine of up to 200,000 Baht, it is strongly recommended that the taxpayers should do the followings:

Our TP team is prepared to provide TP risk review on your TP Disclosure Form as well as to assist you in preparing Local File with a gap analysis and recommendation to support your TP risk management in advance.