2021 In Review- A Roller Coaster Ride to a Happy New Year, 2022
Transfer Pricing Update: MNEs to File Country-by-Country Report (CbCR)
Multinational enterprises (“MNEs”) with consolidated group revenue exceeding Baht 28,000 million for the previous 12-month accounting period must submit a CbCR, together with their corporate tax return (“Form P.N.D. 50”), to the Revenue Department.
Transfer Pricing Update:
Additional Documents Required for Related Party Declarations
Corporate taxpayers with revenue exceeding Baht 200 million in any accounting period must disclose their related party transactions to the Revenue Department. Notification No.407 is part of these broader disclosure requirements, which intend to establish whether related parties execute transactions at market prices (a.k.a arm’s length price).
Tax Consideration on Capital Increase
New Interest Rate Scheme
The amendments are intended to improve fairness for debtors and set rates in line with current economic conditions. The changes also supplement Bank of Thailand interest rate measures implemented in 2020.
Business operators and individual investors are showing a spiking interest in digital assets as alternatives to traditional investments. In response to this trend, Thailand’s Securities and Exchange Commission (“SEC”) introduced a real-estate backed initial coin offering, an addition to the current laws, to allow business operators to procure funds for investment.
Customs Affairs in Thailand-(2) Violations and Sanctions
In this edition, we continue our discussion of customs errors and violations commonly made by importers. The author hopes to encourage awareness, especially of the legal consequences, and help importers improve their compliance framework. This article continues our customs series. Article 191, the first in the series, was published in April 2021.
New Rules to Write Off Bad Debt
The Revenue Department recently announced new rules to write off bad debt for corporate income tax purposes. The new rules intend to resolve issues that had long barred taxpayers from writing off bad debts. In this article, the author addresses only rules applicable to non-financial institutions.
Customs Affairs in Thailand
DRKI has been representing clients in an increasing number of disputes with Thailand’s Customs Department.
In this series of articles, DRKI discusses errors commonly made by importers to create awareness of these issues and perhaps provide readers a basis, or an encouragement, to perform their own internal customs compliance checks.
Electronic Signatures: Utility & Limitations
Thailand has approved the use of e-signatures under the Electronic Transactions Act B.E. 2549 (“Act”). Thailand now recognizes electronic signatures ascribed to contracts and other documents as legal equivalents to physical signatures. The move is expected to facilitate business and keep Thailand and its economy abreast with the global digital transformation.
VAT Regime of Electronic Services (e-Services)
Starting 1 September 2021, government will levy VAT on foreign digital services (e-services) consumed in Thailand, a move anticipated to collect nearly Baht 5 billion in state revenue, annually.This article discusses the principles of the new tax and those to be impacted.
PDPA Compliance Guide for Businesses