By Paul Ashburn, Senior Tax Partner, HLB Thailand
Thailand’s Ministry of Finance on March 25 issued a notice under the revenue code to extend the deadline for companies to file related party disclosure forms for the accounting period(s) that began between January 1, 2020 to December 31, 2020.
The deadline for filing has been extended to May 30, 2022. The deadline for filing a disclosure form is normally 150 days after the accounting year-end.
This means, for example, that a company with a December 31, 2020 year-end that has not yet filed its disclosure form for that year now has until May 30, 2022 to file the form and not incur a fine for late filing.
In the same notice, the deadline for filing the form was extended by eight days in case of online filing if the deadline for filing the form falls on May 23 to May 30, 2022.
Thailand’s transfer pricing legislation, in effect since 2019, requires companies with THB 200 million (USD 6 million) or more in revenues in an accounting period to file a related-party disclosure form with the revenue department, disclosing details of their related parties and transactions during the year with related parties.
The first year of reporting in 2020 coincided with the pandemic, which led to filing deadline extensions and fine reductions for late filing. The pandemic was also cited as the reason for granting the latest extension deadline.
Country-by-country reporting deadline extension
As part of the country’s commitment to implement the OECD/G20 BEPS Action Plans, last year the director-general of the revenue department introduced country-by-country reporting, effective for accounting periods beginning on or after January 1, 2021.
Thailand’s reporting rules are largely based on the model legislation contained in the OECD’s country-by-country implementation package. One exception, however, was that the report had to be filed with the company’s corporate tax return, which is due for filing within 150 days of the year-end, whereas the usual time frame given is 12 months from the close of the financial year.
Following representations made to the revenue department, the Ministry of Finance issued a notice under the revenue code on December 23, 2021 to extend the filing deadline.
The reporting deadline was extended to 12 months after the financial year-end for Thai headquartered groups and surrogate parent entities appointed to file the report on behalf of the group.
In other cases, companies carrying on business in Thailand will be required to file the report within 60 days if the revenue department requests it.
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Paul Ashburn is a senior tax partner at HLB Thailand
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