“DISCLOSURE FORM – transfer pricing” does your company have to file it together with 2020 annual tax filing?

“Disclosure Form – transfer pricing” does your company have to file it together with 2020 annual tax filing?

The new transfer pricing regulation of Thailand has been officially introduced with effects from fiscal year of January 1, 2019 onwards. This results in those who fall into the disclosing criteria of transfer pricing must report their transactions conducted with related companies with Disclosure Form to the Revenue Department together with tax filing from 2019 years onwards.

1. Are you required to file the DISCLOSURE FORM?

• Your company is related to another company under the definition of the Revenue Code, e.g., holding shares directly or indirectly of not less than 50% in another company, shareholders of one company holding shares directly or indirectly of not less than 50% in another company, or the company that is related to another company; by cost, management, or in a way that one entity cannot independently operate from another one as defied by Ministerial Regulation.
• Your company has total revenue THB 200 Mio or Higher If all the above is yes, see No. 2 below:

2. What do you have to declare in the DISCLOSURE FORM?

• Name of companies or limited partnership related to your company situating in or outside Thailand
• Value of transaction conducted among related companies in applicable fiscal year.

3. How you can file the DISCLOSURE FORM?
   • Via E-Filing. The Revenue Department allows the form to be filed within 158 days (usually 150 days) from the end of 2020 accounting period; or
   • Paper filing is also possible. Note that the filing period is reduced to 150 days from the end of 2020 accounting period.

4. What is a penalty of non-compliance?
   • Late submission of not more than 7 days is subject to a fine of THB 50,000.-
   • Late submission of more than 7 days is subject to a fine of THB 100,000.-
   • Late submission is detected by the office is subject to a fine of THB 200,000.-

Please feel free to contact us should you need further support in case you are not sure if you are required to do the DISCLOSURE FORM. This article is not a legal advice and it shall be solely treated for general guideline purpose.