Tax Section - Doing Business
You will find here a series of summaries providing an overview of useful tax regulations, processes and tax issues for Doing Business in Thailand.
Fine reduction for filing the TP disclosure form
A company or legal partnership with total income in its financial statements of not less than THB 200 million and which has related parties as defined by the Revenue Department is required to file a transfer-pricing disclosure form together with the annual corporate income tax return for the accounting period ending on or after 1 January 2019 within 150 days of the closing date of the accounting period.
Ministerial Regulations on transfer pricing
Under Section 71 bis of the Revenue Code, Revenue Department officials are granted the authority to adjust corporate taxpayers’ revenue and expenses in relation to related-party transactions that are not at arm’s length under the rules, procedures, and conditions set out in the related Ministerial Regulation.
Copies of corporate documents no longer required
On 31 August 2020, the Revenue Department issued a notification on cancelling the use of paper copies of company affidavits, and using data sent over the internet instead to reduce the burden on business operators.
Extension of the reduced value-added tax rate
Currently, the value-added tax (VAT) rate is reduced from the normal rate of 10% to 7%. This reduction was set to expire after 30 September 2020, unless another law was passed extending the reduced VAT rate. In its meeting on 25 August 2020, the Cabinet approved a draft Royal Decree extending the reduced VAT rate of 7% for another year, from 1 October 2020 to 30 September 2021.
Reminder about filing half-year corporate income tax returns
According to the Notification of the Ministry of Finance issued in March 2020, the deadline for filing the half-year corporate income tax return (Form PND. 51) and paying half-year income tax is extended to 30 September 2020 where the fiscal year is the same as the calendar year. This extension applies to companies or legal partnerships, excluding companies that have securities listed on the Stock Exchange of Thailand before or on the last day of the filing deadline.