Thailand has joined the Global Forum on Transparency and Exchange of Information for Tax Purposes as its 139th member. Its membership reinforces its commitment to implement the automatic exchange of information according to the Common Reporting Standard (CRS). The CRS is a global standard for exchanging information obtained by financial institutions between jurisdictions annually.
The Royal Decree on the Exchange of Information for International Agreements on Taxation B.E. 2566 (2023) (the “Royal Decree”) was published in Thailand’s Royal Gazette on 30 March 2023 and became effective on the following day. Thailand, as a member, enacted this Royal Decree to implement the global standard and improve transparency as ruled by the CRS in stating the key requirements for the compliance and implementation of CRS. It also sets the legal responsibilities for the financial institutions and penalties.
Two standards are specified by this Royal Decree, which are summarised as follows:
The penalties under this Royal Decree are as follows:
Our tax experts’ view
This Royal Decree may not only focus on the financial institutions but also on the entity or individual who is a taxpayer in preparing to comply with any request or demand from the tax authority in submitting the information upon request. The Thai Revenue Department can currently investigate the taxpayer’s financial accounts across the jurisdiction and vice versa for other countries’ Revenue Departments. There may be a situation that Thai taxpayers need to be aware of the correctness of the report of their offshore bank account information. The correct information will ensure compliance under the Thai tax law to avoid any administrative fine, penalty or imprisonment that they may be exposed to.
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