The transfer-pricing disclosure form is one which companies or legal partnerships that are related, as defined in Section 71 bis of the Revenue Code, must prepare and file together with an annual corporate income tax return within 150 days of the last day of the accounting period.
Keywords: Mazars, Thailand, Tax, Transfer-pricing, Revenue Code, Revenue Department, Corporate income tax return
11 May 2021
The information to be reported in the transfer-pricing disclosure form includes the following:
1. A list of related companies or legal partnerships conducting business both in and outside of Thailand.
2. The amount of transactions between the related parties in each accounting period.
3. Other information, such as:
- The entity responsible for preparing consolidated financial statements.
- That related to business restructuring between the related parties in each period which has an impact on revenue, cost, or profit (if any).
- The disposal of intangible property to related parties in the accounting period (if any).
Who is responsible for filing the transfer-pricing disclosure form?
Companies or legal partnerships which must submit a transfer-pricing disclosure form are:
1. Those which are related in the following ways:
(a) A company or legal partnership that either directly or indirectly holds 50% or more of the total shares of another legal entity;
(b) A company or legal partnership of which 50% or more of its total shares are held either directly or indirectly by a shareholder or partner that also directly or indirectly holds 50% or more of total shares of another legal entity; or
(c) A company or legal partnership that has a dependent relationship with another legal entity in terms of capital, management, or control, to the extent that one entity cannot be operated independently from the other.
2. Those having a total income of more than 200 million baht.
Ways to file the transfer-pricing disclosure form
1. The transfer-pricing disclosure form shall be filed through the Revenue Department’s website directly or through the Single Sign-On service system on the Ministry of Finance’s website. As this is done online, the Revenue Department has extended the deadline for an additional 8 days, so that the form must be filed within 158 days of the end of the accounting period.
2. If the form cannot be filed online, a company or legal partnership can print out the transfer-pricing disclosure form from the system and submit this paper version together with a letter addressed to the Director-General of the Revenue Department stating reasonable grounds for why the transfer-pricing disclosure form cannot be filed online. Filing on paper can be done at the Branch Area Revenue Office that has jurisdiction over where the place of business is located within 150 days of the last day of the accounting period.
Penalties for failing to file the transfer-pricing disclosure form
Under the Revenue Code, a company or legal partnership shall be subject to a fine not exceeding THB 200,000 if it does not file a transfer-pricing disclosure form by the deadline or files one with incorrect or incomplete information without reasonable grounds. However, the Revenue Department has published certain fines for filing a transfer-pricing disclosure form late for accounting periods beginning on or after 1 January 2020, as follows:
- Not more than 7 days after the deadline: THB 50,000
- More than 7 days after the deadline: THB 100,000
- If a Revenue Department officer finds that a form has not been filed: THB 200,000
Our tax experts are available to assist you with preparing the transfer-pricing disclosure form and other transfer-pricing matters.