A.TP Update: Thai Country-by-Country
Submission of both the CbCR Notification and the actual CbCR is required of MNEs in the accounting period starting January 1, 2021, per Notification of the Director-General of the Revenue Department Re: Income Tax No. 408 (“D.G. 408”).
Thailand, however, is still in process of joining the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (“MCAA CRS”) to align its cross-border taxation with other signatory countries. Although the enabling legislation is still in development, the Revenue Department anticipates starting exchanging financial information in September 2023.
The CbCR filed in Thailand, hence, for now, will not participate in the data exchange. Nonetheless, the reporting entity that is a company or juristic partnership, but is neither an Ultimate Parent Enterprise (“UPE”) or a Surrogate of Ultimate Parent Enterprise (“SPE”), but is classified as a subsidiary of a UPE, per D.G. 408, Clause 2, and has its accounting period ending on December 31, 2021, must submit the CbCR Notification to the Revenue Department by December 31, 2022.
On the other hand, as Thailand is yet to enter the MCAA CRS, CbCR submission is required when and only when the subsidiary of the UPE in Thailand receives a notice of CbCR submission from the Revenue Department. In such case, the submission must be made within 60 days of the notification’s date of receipt.
What Is a CbCR Notification?
The CbCR Notification is the first step in the CbCR submission process. A representative entity of the MNE in Thailand must file the CbCR Notification with the Revenue Department to inform the authority of its jurisdiction and type (as a reporting entity), along with uploading a list of juristic entities within the group operating in Thailand.
What Information Is Required in The CbCR Notification?
The CbCR Notification requires the following information, in three parts:
Part 1: Contact Personnel Information
• Name of MNE’s contact person.
• Contact person’s position in the MNE.
• Office and mobile telephone number of person filing the Notification.
• Contact person email address.
Part 2: Notification Information
• UPE’s country.
• Ultimate parent NID.
• Name of UPE.
• Name of CbCR reporting entity.
• Relevant fiscal year, start and end.
Part 3: List of Thai Constituent Entities
• A list of Thai constituent entities can be provided as a CSV/XLS file. File size must not exceed 3 MB. The entity list template can be downloaded from the Thai Revenue Department website.
Where to Submit CbCR Notification?
The CbCR Notification can be uploaded to the Thai Revenue Department website. Log is in required.
• Final Reminder: MNEs with a related company carrying on business in Thailand, and whose accounting period ended on 31 December 2021, must prepare a CbCR Notification and then file it with the Revenue Department within 31 December 2022, via the e-filing system on the Thai Revenue Department website.
• Reporting entities should also stay aware of the CbCR submission requirement and should start reviewing the CbCR model template and required CbCR information in order to be well-prepared when receiving the Revenue Department’s notice of CbCR submission. Reporting entities must submit the CbCR within 60 days of receiving this notice.
• Reporting entities should also ensure consistency of the information provided in the Disclosure Form, Master File, Local File and CbCR.
**By Mr. Phongnarin Ratanarangsikul, Partner and Mr. Nattawat Wattanatornnan, Tax Consultant, Dherakupt International Law Office Limited