Insights

This tax news will be of interest to: Thai companies that are part of multinational enterprise (MNE) groups and engage in intercompany transactions. In our tax news, you will find a guide on how a company can deal with a transfer pricing (TP) audit. How to manage TP risks during the audit If the company faces one or more red flags according to our TP series Part 1: Potential Red Flags, the company needs to prepare for how to deal with the TP audit by the tax authority. To reduce the risk of TP adjustments during the TP audit, the following important steps should be taken:

Thailand’s Cabinet Approves Draft Financial Hub Act to Boost Global Investment To position Thailand as a key global financial hub, the Thai Cabinet approved the draft Financial Act on February 4, 2025, as proposed by the Ministry of Finance. This legislation seeks to attract foreign financial businesses to invest in Thailand, while simultaneously fostering the development of the nation’s financial industry, workforce, and infrastructure to meet international standards.

This tax news will be interest to: Thai companies that are part of multinational enterprise (MNE) groups and carry out intercompany transactions. In this tax news, we explain potential red flags that could trigger a Transfer Pricing (TP) audit by the Thai Revenue Department (TRD), how the TRD selects audit targets and how companies can minimise TP risks.

To streamline tax administration and promote paperless processes, the Revenue Department issued a Notification of the Director-General of the Revenue Department on Income Tax No. 451, published on December 3, 2024, mandating the exclusive online submission of withholding tax returns. This new regulation will be effective from January 1, 2025.

On 25 November 2024, the Board of Investment (“BOI”) issued Announcement No. Por 10/2024, implementing stricter guidelines for its e-Investment Promotion system. This new BOI regulation, effective from 1 December 2024, aims to streamline the application process and ensure the accuracy of submitted information.

The Revenue Department has announced the popular tax incentives scheme, now known as “Easy E-Receipt 2.0” (formerly “Shop Dee Mee Kuen”), which offers individual taxpayers up to THB 50,000 in personal income tax deductions for 2025. Your deductions for purchasing goods and services must be made between January 16, 2025, and February 28, 2025.

เปลี่ยนการจ้างงานที่เป็นเรื่องยาก มาอัพเดทความรู้ด้านการบริหารและการสรรหาว่าจ้างคนเก่ง พร้อมกฎหมายแรงงานที่ต้องรู้ในการจ้างงานเพื่อเป็นกุญแจสำคัญให้การจ้างงาน ให้เป็นไปอย่างมีประสิทธิภาพ และประสบผลสำเร็จมากขึ้น

New technologies often create new markets that existing regulatory frameworks are not equipped to govern. Sometimes, these emerging markets are so novel that they create uncertainty or gaps in the tax system. The challenge for governments is to devise new tax rules that neither stifle the development of these markets nor create unfair tax loopholes. This is not an easy task.

Thank you to the 140+ attendees from over 70 companies who joined us for the Accounting & Tax Updates 2024 Seminar!

Grant Thornton will be holding the Accounting & Tax Updates 2024 Seminar on the topic “ESG and accountants & Tax audit insights” on Tuesday, 26 November 2024, from 0900 to 1630 hours at Bliston Suwan Park View Hotel, Bangkok.

Last year, the Thai Revenue Department (“TRD”) issued Departmental Instructions No. Paw 161/2023 and Paw 162/2023 concerning foreign-sourced income. According to these instructions, any Thai tax resident with foreign-sourced income will be taxed in Thailand when such income is remitted into the country, regardless of when you remit it.

The legal division of the Thai Revenue Department (“TRD”) recently addressed whether a virtual office can be registered as a place of business for Value Added Tax (“VAT”) purposes.

On 15 March 2024, the Board of Investment (“BOI”) published an Announcement No. Sor 2/2024 by virtue of the Investment Promotion Act 1977, to promote investment in digital businesses in response to changing business operations and technology in the digital industry.

As we reflect on the challenges and opportunities of the past year, it's evident that many Thai entities have faced heightened scrutiny through tax audits, particularly amidst requests for tax refunds or company dissolutions. As we embark on 2024, we're gearing up with renewed determination to tackle this challenge head-on. We're excited to announce our initiative to raise awareness surrounding tax audits in these specific scenarios.

On 7 March 2024, the Cabinet agreed and approved the principle of OECD Pillar Two, also known as Global Minimum Tax, and tasked the Thai Revenue Department (“TRD”) with formulating the corresponding legislation.

After the company has operated until the end of its accounting period, it must submit financial statements and annual corporate income tax returns to the government. In general, the tax base of a business is calculated based on its taxable net profit. Therefore, tax adjustments and various benefits received from the government are at the heart of helping the company review its tax status to ensure that the information shown in the corporate income tax return is correct and consistent with the tax computation.