January 21, 2022
Thailand extends deadline for submission of transfer pricing Country-by-Country reports
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.
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:
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.
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
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.