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 Part 3: we have provided guidance on how companies can minimise risks during a tax/TP audit related to intra-group services, as well as examples of evidence and supporting documents. In this article, you will find guidance on how to minimise risk related to royalty transaction.

This tax news will be of interest to: Thai companies that are part of multinational enterprise (MNE) groups and engage in intercompany transactions. In the TP series Part 1 & Part 2: we have highlighted the potential red flags and how to deal with transfer pricing (TP) audit. The main focus of the Thai Revenue Department (TRD) is on intra-group services, which we will cover in this article.

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:

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.

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.

transfer pricing regulations

This tax news will be of interest to: Thai tax entities with a total annual revenue of more than THB 200 million, which have also had transactions with related companies