On 30 September 2021, the Director-General of the Thai Revenue Department issued guidance Notification No. 407 regarding transfer pricing (TP) documentation requirements for the information and documentation for the Local file and exemption from the benchmarking study requirement.These new measures are effective for all accounting periods beginning on or after 1 January 2021.
The Local file, along with the associated information and documents must be prepared in the Thai language. The submission of a Local file is considered complete only if a taxpayer receives a document receipt number or any other evidence of receipt from the tax agency.
The exemption from the benchmarking study may be available if the taxpayer:
- Has income from business or a related business in the accounting period not exceeding THB 500 million;
- Has no controlled transactions with related parties paying a different corporate income tax rate from the taxpayer;
- Has no controlled transactions with overseas related parties; and
- Has no loss carry forward used in the accounting period, and related parties in controlled transactions have no similar loss.
The benchmarking study exemption may be available if the taxpayer has requested an advance pricing agreement (APA) or any obligations under an income tax treaty with concluded agreements from government bodies during the agreed periods.
