Insights

In a significant development on 15 September 2023, the Thai Revenue Department (“TRD”) issued the Departmental Instruction No. Paw 161/2023 re: the income tax payment under Section 41 paragraph 2 of the Thai Revenue Code (“TRC”). Under this DI, a Thai tax resident with foreign-sourced income will be taxed in Thailand when such foreign source income is remitted into Thailand irrespective of when such income is remitted into Thailand. This rule applies only to Thai tax residents and will be effective from 1 January 2024 onward. You can find more details from our previous publication: https://www.grantthornton.co.th/insights/tax-alerts/.

Very few companies in Thailand will carry out Digital Transformation successfully at an enterprise-wide scale. Even if they did, they are typically powered by huge budgets, dedicated teams and multi-year timelines. All other companies must inject “digital” into their processes using a more pragmatic and tactical approach. When done properly this can rapidly unlock cost savings and create new and lucrative opportunities for revenue creation. Yet companies struggle either to start this journey or turn it in to demonstratable success.

We cannot deny that digital disruption has become a recent trend, and the Thai Government also aims to promote the use of digital tools to enhance infrastructures for efficiency. To align with the Government’s policies and visions, the Thai Revenue Department (TRD) has implemented several plans to integrate digital technology into tax documentation, including e-tax invoices.

Follow the approval of the Thai Cabinet regarding the extended reduction of the Value Added Tax rate from 10% to 7% until 30 September 2024.

In a significant development on 15 September 2023, the Thai Revenue Department (“TRD”) issued the Departmental Instruction no. Paw 161/2566 (2023) re: the income tax payment under Section 41 paragraph 2 of the Thai Revenue Code (“TRC”). This freshly unveiled guidance is poised to exert a profound influence on the taxation framework governing foreign-sourced income that is repatriated to Thailand by any Thai tax residents with implications set to take effect from 1 January 2024 onward.

The new H1 2023 IBR is especially significant, as it indicates a clear expectation among business leaders of full-throated, post-pandemic growth across industries — a long-awaited development that had been delayed repeatedly in recent years amid geopolitical issues such as the war in Ukraine and the downturn of China, as well as new waves of infections.

Our CEO & Managing Partner, Ian Pascoe and Associate Director, Neetika Mutreja have published an article in INSOL World Q3 2023. They discuss the Central Bankruptcy Court's Restructuring Framework, practical hurdles that impair the efficacy of the framework, proposed amendments, and much more.

How can your business address the challenges of an ageing population and a shrinking workforce?

Transfer Pricing

Our CEO & Managing Partner Ian Pascoe interviews our Director of Forensic Advisory Ashish Chaturvedi on the many benefits of a whistleblowing hotline, how to set one up, how to get your team to buy in, and much more in this video.

Collective Action Against Corruption in Thailand, CAC

The worst injuries are often the ones that go undetected. In far too many cases, companies that report no fraud are simply unaware of the leakages inside their own area of operations, which tend to be significant in scope. The most recent edition of Report to the Nations: Occupational Fraud, by the Association of Certified Fraud Examiners, estimates that organisations lose 5% of revenue to fraud each year. While the median loss per case is USD 117k, the average loss is an eye-watering USD 1.78 million.

The effective application of artificial intelligence, as we’ve argued at length elsewhere, has already begun to reliably distinguish forward-looking businesses from those still coasting on the momentum of previous successes. Of course, this level of operational advancement remains difficult to achieve, as the integration and scaling of AI solutions represent a long and complex journey — though it is well worth the investment when implemented skilfully.

Multinationals face significant challenges when setting up each new branch or subsidiary in a foreign country. Finding skilled, experienced local staff can be more difficult than many business leaders expect – and training them to fit in with the existing multinational company culture is no easy task either. An even bigger obstacle tends to be the varying regulatory environments at both the local and national scale where the new branch or subsidiary will open. In many cases, company headquarters will find itself unfamiliar with the regulations, licences, and application processes needed to operate in their new location. Failure to comply can seriously damage brand reputation, and lead to serious legal implications.

On 7 March 2023, the Cabinet approved in principle official plans for implementing Global Minimum Tax under the OECD BEPS – Pillar 2 regime. One of the assignments to the BOI was to provide relieve to the companies impacted by this Pillar 2 in Thailand

Thailand is one of over 135 countries that have endorsed international tax measures to be introduced by the OECD/G20, referred to as Base Erosion and Profit Shifting (BEPS) 2.0. The original BEPS Project identified 15 Action Items, including harmful tax practices and tax treaty abuse, which the Thai Government has addressed, the latter through implementing the multilateral Instrument. The latest package of BEPS rules is the two pillars in BEPS 2.0. and it is aimed at addressing the tax challenges of the digitalization of economies.