Country-by-Country Reporting: Notification Requirements in Thailand

This tax news will be of interest to: Thai entities that are the Ultimate Parent Entities or are part of the group entities obliged to file the Country-by-Country report. 

The first step of the Country-by-Country report submission process is providing a notification to tax authorities before the end of the reporting accounting year. 

The notification can be provided by logging-in to the Thai Revenue Department’s website.

It must follow the template in the Country-by-Country reporting system and must include: 

1. The name of the entity that will file the Country-by-Country report. This can either be by the Ultimate Parent Entity or a surrogate of the Ultimate Parent Entity.
2. A list of entities within the group that carry on business in Thailand.  

There are two notification procedures for the Country-by-Country reporting in Thailand:

1. Notification through the transfer pricing disclosure form: A Thai entity that is required to submit the transfer pricing disclosure form must provide the relevant information in Part C of the transfer pricing disclosure form. 
2. Notification through the Country-by-Country reporting system: the group entities shall assign a Thai entity as a representative of the group to fill out the required information into the system.

The Country-by-Country reporting notification must generally be filed as soon as possible and no later than 12 months after the last day of the accounting year. For example, if the Country-by-Country reporting accounting year ended on 31 December 2021, the Thai entity which is the representative of the group must submit their information as soon as possible and no later than 31 December 2022.

Other notable points

The Country-by-Country reporting notification procedures require Thai entities that are part of group entities obliged to file the Country-by-Country report to submit the necessary information to the Thai Revenue Department in two procedures (i.e., through the transfer pricing disclosure form and/or through the Country-by-Country reporting system).

The number of entities listed in the Country-by-Country notification system may exceed the number of entities listed under Section A of the transfer pricing disclosure form. Under the Country-by-Country notification system, the list of entities carrying on business in Thailand is based on the group’s financial consolidation basis (financial control concept), which is broader than the requirements of Section A of the transfer pricing disclosure form.

Under Section A of the transfer pricing disclosure form, the disclosed list of entities carrying on business in Thailand is based on a percentage of direct or indirect shareholding of 50% or more. (The definition of management or control relationship under Section 71 bis paragraph 2 (3) has not been defined. Therefore, Thai tax entities still rely on the group entity relationship requirements under Section 71 bis paragraph 2 (1) and (2), i.e. shareholding percentage of 50% or more.)