Due to the impact of BEPS (Base erosion and profit shifting) project, Thailand aims to establish the system of transfer pricing.
Though Thai government has recently scheduled the retroactive enforcement from the accounting periods beginning on or after 1 Jan. 2017, we opine that the enforcement will be postponed. It may be from the periods beginning on or after 1 Jan. 2019. Namely, we guess the enforcement will be delayed two years.
The reason is (1) the draft of the Revenue Code Amendment Act to introduce the transfer pricing system is still under consideration in NLA (the National Legislative Assembly) in March 2018. (2) NLA seems to too busy for considering the draft concerned with holding an election to proceed with the consideration of the Revenue Code Amendment Act, so we guess that it will be pass after June at the earliest.
Applicable taxpayers for the transfer pricing system are fixed from a view of the revenue amount in an accounting period under the present draft. Namely the threshold to apply the system is at least 30 million THB and the Ministry of Finance has the power to set up the threshold to the extent of exceeding 30 million THB. However, we guess that the threshold will be adjusted higher than 30 million THB. Namely, NLA may dislike to give the MOF such power, that is, the MOF is entitled to set the applicable taxpayer having 30 million THB per year.