October 22, 2021
Thailand publishes mandatory requirements for Thai transfer pricing documentation
The Thai Revenue Department published the Notification of Director-General of Revenue Department No. 407 (the Notice) on 30 September 2021, outlining the information that must be included in transfer pricing (TP) documentation when it is requested by the Revenue Department.
Under Thai tax law, TP documentation is not required to be filed with the transfer pricing disclosure form.[i] However, the TP documentation is generally required to be provided within 120 days of receiving a request from the Revenue Department (or 180 days if it is a first-time request under the new TP Act, which is applicable for the first fiscal year starting on or after 1 January 2019).[ii]
This Alert summarizes the key TP documentation requirements applicable to fiscal years starting on or after 1 January 2021.
Mandatory requirements for TP documentation
Information on taxpayers
Information on related-party transactions
Prior year TP documentation requirements
The Notice only applies to TP documentation prepared for fiscal years starting on or after 1 January 2021. Therefore, TP documentation for fiscal years ending before 31 December 2021, which is prepared in English or Thai and is based on the TP guidelines (Paw 113/2545), should be acceptable to the Revenue Department.
Benchmarking study exemptions
A benchmarking study is not required if either:
Thai companies should review their Thai TP documentation processes and procedures to ensure compliance with the requirements of the Notice.
For additional information with respect to this Alert, please contact the following:
EY Corporate Services Limited, Bangkok
Ernst & Young LLP (United States), Thai Tax Desk, New York
Ernst & Young LLP (United States), Asia Pacific Business Group, New York
Ernst & Young LLP (United States), Asia Pacific Business Group, Chicago