On 15 Aug 2023, a Thailand Ministerial Regulation was gazetted, enacting the Common Reporting Standard laws for Automatic Exchange of Information.

This Insight summarizes the enacted Ministerial Regulation.

The Common Reporting Standard

The Common Reporting Standard is the core law for the Automatic Exchange of Information which requires Reporting Financial Institutions to collect and report financial information to the tax authority of the Jurisdiction they're in for the tax authority to exchange that information with Participating Jurisdictions.

It is a standard set of due diligence review and reporting rules for all Reporting Financial Institutions in all Participating Jurisdictions.

The Thailand Common Reporting Standard Laws

1. Definitions

1. A Financial Institution is:

• A depository institution that accepts deposits in the course of banking,
• A custodial institution that holds financial accounts for customers,
• An investment entity that conducts trading in money markets or foreign exchange, interest rates, securities, futures or financial assets, and
• An insurance company that issues or makes payments under insurance contracts or annuity contracts.

2. A Reporting Financial Institution is:

• A Financial Institution that's a resident of Thailand but not including any branch of that Financial Institution located outside Thailand; or
• A branch of a Financial Institution that is not a resident of Thailand, but which is located in Thailand.

3. Reportable Accounts are accounts of individuals or corporate entities held by persons or controlling persons that Reporting Financial Institutions identify and determine to be a resident of a Reportable Jurisdiction.

4. A Reportable Jurisdiction is a Participating Jurisdiction under agreements for Automatic Exchange of Information and Common Reporting Standard to which Jurisdiction there is an obligation to provide financial information.

2. General Due Diligence and Reporting Rules

1. A Reporting Financial Institution may choose to:

• Perform the due diligence procedures for New Accounts also for Existing Accounts provided that the procedures otherwise prescribed for Existing Accounts are also performed; and
• Perform the due diligence procedures for Higher-Value Accounts also to Lower-Value Accounts.

2. An account that is identified as a Reportable Account from the due diligence procedures shall be treated a Reportable Account in subsequent years until an Account Holder ceases to be a Reportable Person.

3. Unless otherwise specified for Existing accounts and New accounts, Reporting Financial Institutions shall report Reportable Accounts in the 2024 year and later years to the Revenue Department by 30th June of the following year.

3. Existing Lower-Value Accounts of Individuals

1. Existing Lower-Value Accounts of Individuals are accounts existing prior to 16 August 2023 with balances or values not exceeding 30 million baht as at:

• 31 December 2022, or
• 31 December 2023.

2. Reporting Financial Institutions shall determine Account Holders tax residency from the most up-to-date information of the Account Holder's current residence address that's recorded in a Reporting Financial Institution's electronic database information and that's not a mailing address.

3. For any indications of a residence address being in a Reportable Jurisdiction, a Reporting Financial Institution shall treat an account as a Reportable Account for each indicated Reportable Jurisdiction unless the due diligence rules provide the Reporting Financial Institution with an exception not to do so.

4. An individual's Existing Lower-Value Account that's a Reportable Account at 31 December 2023 shall be reported to the Revenue Department by:

• 30 June 2024.

4. Existing Higher-Value Accounts of Individuals

1. Existing Higher-Value Accounts of individuals are accounts existing prior to 16 August 2023 with balances or values exceeding 30 million baht as at:

• 31 December 2022, and
• 31 December 2023.

2. Reporting Financial Institutions are required to search the electronic database information that a Reporting Financial Institution has for any indications that the residence address of the Account Holder is in a Reportable Jurisdiction.

3. If the electronic database information of Reporting Financial Institutions don't indicate a current residence address, a Reporting Financial Institution shall then review its paper files for documentary evidence of a residence address that was obtained by the Reporting Financial Institution within the prior 5 years.

4. For Higher-Value Accounts of individuals Existing at 15 Aug 2023 found to be a Reportable Account as at 31 December 2022, a Reporting Financial Institution is required to report them by:

• 16 September 2023.

5. For Higher-Value Accounts of individuals Existing at 15 Aug 2023 found to be a Reportable Account as at 31 December 2023, a Reporting Financial Institution is required to report them by:

• 30 June 2024.

5. Existing Accounts of Corporate Entities

1. Existing Accounts of corporate entities are accounts existing prior to 16 August 2023 with balances or values exceeding 7.5 million baht as of:

• 31 December 2022, and
• 31 December 2023.

2. A Reporting Financial Institution shall perform due diligence reviews for such accounts for the purpose of identifying accounts held by Reportable Persons or Controlling Persons who are a Reportable Person.

3. For Existing Accounts of corporate entities that are Reportable Accounts at 31 December 2023, a Reporting Financial Institution shall report them by:

• 30 June 2024.

6. New Accounts of Individuals

1. New Accounts of individuals are accounts opened on or after 16 August 2023 with balances or values of any amount as at:

• 31 December 2023.

2. ​Whilst the due diligence for Existing Accounts relies mainly on information the Reporting Financial Institution already has on file, the opening of a New Account requires Reporting Financial Institutions to obtain self-certifications.

3. If a self-certification or the verification of the documentary evidence shows an Account Holder is a resident of a Reportable Jurisdiction, the Reporting Financial Institution shall treat the account as a Reportable Account and shall additionally report Account Holders dates of birth and TINs in Reportable Jurisdictions to the Revenue Department.

4. For New Accounts of individuals opened on or after 16 August 2023 that are a Reportable Account at 31 December 2023, a Reporting Financial Institution shall report them by:

• 30 June 2024.

7. New Accounts of Corporate Entities

1. New Accounts of corporate entities are those that are opened on or after 16 August 2023 with balances or values of any amount as at:

• 31 December 2023.

2. A Reporting Financial Institution shall perform the prescribed due diligence review procedures for such accounts, including the requirement to obtain self-certifications, and if an account is held by a Reportable Person or one or more Controlling Persons who are Reportable Persons. the account shall be treated Reportable and reported to the Revenue Department.

3. For a New Account of a corporate entity that's a Reportable Account as at 31 December 2023, Reporting Financial Institutions shall report them by:

• 30 June 2024.

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