In October 2023, Thai Revenue Department (TRD) published updated guidance on advance pricing arrangements (APAs). The guidance on APAs has instructions and requirements for bilateral APAs.
The update in the guidance mostly related to the information required to be included in the APA application. The new requirements align with the transfer pricing documentation criteria outlined in a 2021 notification from the Director-General of the TRD on income tax (No. 407).
As per the new guidance, APA applicants must include all the necessary information and documents in the APA application to facilitate negotiations. Failure to do so may result in the TRD rejecting the APA request.
The key updates in the APA guidance are:
Pre-filing Meeting Application
- The taxpayer who intends to apply for the APA must submit a written document of intent to the Director-General of the Revenue Department at least 6 months before the last day of the first accounting period. The documents must have to be submitted to the Revenue Department 15 days before the Pre-filing Meeting. Exceptions regarding delayed submission may only be given due to reasonable cause.
- If a taxpayer intends to apply for the APA for an accounting period ending 31st December 2010 to 31st December 2012, the document of intent has to be submitted to the Revenue Department by 30th June 2010. However, it should be noted that the Pre-filing Meeting is not legally binding for all APA parties.
APA Application
- To apply for the APA, the taxpayer shall submit a written document of intent according to the form set out by the Revenue Department, as well as other documents to the Director-General of the Revenue Department before or within the last day of the first accounting period of the APA application submitted.
- Five copies of all related documents shall be submitted in both Thai and English languages.
- One electronic format is also required to be submitted.
