Executive summary

The Thai Ministry of Finance enacted a Notification on 23 December 2021 (the Notification), announcing an extension of the deadline for submission of Thai transfer pricing Country-by-Country (CbC) reports in Thailand, applicable to fiscal years starting on or after 1 January 2021. The Notification is enacted to ensure that Thailand's CbC report submission deadline is consistent with internationally accepted standards.

This Alert summarizes the key updates with respect to the CbC report submission deadline.

Detailed discussion

Prior to the Notification, a multinational enterprise (MNE) group with consolidated revenue of not less than THB28,000 million (US$840 million) in the immediately preceding fiscal year was required to submit a CbC report together with the annual corporate income tax return within 150 days from the fiscal year-end.¹ The CbC report submission deadline has now been extended by the Notification as follows:

1. Within 12 months from the fiscal year-end for the Thai ultimate parent entity (UPE) or Thai surrogate entity (SE).
2. Within 60 days after it is requested by an assessment officer for a subsidiary carrying on business in Thailand (other than a Thai SE), if any of the following applies:
• The UPE is not required to file CbC reports in its tax residence jurisdiction
• The UPE is a tax resident of a jurisdiction which does not have an effective exchange of information arrangements with Thailand
• Automatic exchange of information between the jurisdictions is not possible due to other reasons

Implications

Thai companies and MNE groups with Thai subsidiaries should review their CbC reporting deadline to ensure compliance with the requirements of the Notification. The extended CbC report submission deadline aligns with international standards and offers more flexibility to MNEs for their CbC reporting purposes. Considering that the CbC reporting requirements in Thailand apply from 1 September 2021, the first primary CbC reporting will be due by 31 December 2022.

The Notification is also beneficial for Thai subsidiaries (other than an SE) who are required to file a CbC report in Thailand as the filing is now required only upon request by the Thai tax authorities, with a 60-day timeline to meet such request.

The Notification does not address whether the deadline for a Thai subsidiary to notify the competent Thai authority of the UPE's appointment of a foreign SE is extended.

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For additional information with respect to this Alert, please contact the following:

EY Corporate Services Limited, Bangkok

• Yupa Wichitkraisorn | yupa.wichitkraisorn@th.ey.com
• Kasem Kiatsayrikul | kasem.kiatsayrikul@th.ey.com
• Papatchaya Akkararut | papatchaya.akkararut@th.ey.com
• Sorraya Boonsongprasert | sorraya.boonsongprasert@th.ey.com
• Su San Leong | su-san.Leong@th.ey.com
• Hirohisa Furuse | hirohisa.furuse@th.ey.com
• Jeong Woo Ahn | jeong.woo.ahn@th.ey.com

Ernst & Young LLP (United States), Thai Tax Desk, New York

• Pariyanuch Ngamcherdtrakul | pariyanuch.ngamcherdtrakul1@ey.com

Ernst & Young LLP (United States), Asia Pacific Business Group, New York

• Chris Finnerty | chris.finnerty1@ey.com
• Gagan Malik | gagan.malik2@ey.com
• Bee-Khun Yap | bee-khun.yap@ey.com
• Dhara Sampat | dhara.sampat2@ey.com

Ernst & Young LLP (United States), Asia Pacific Business Group, Chicago

• Pongpat Kitsanayothin | pongpat.kitsanayothin@ey.com

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ENDNOTE

¹ Notification of the Director-General on Income Tax No. 408 (DGN 408). See EY Global Tax Alert, Thailand publishes mandatory requirements for submission of Thai transfer pricing Country-by-Country reports, dated 4 November 2021.