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

The details in this Tax Insight have been updated from the prescriptions in the 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 portfolio management or managing 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 (such as the branches located outside Thailand of Krungthai Bank, Siam Commercial Bank, Bangkok Bank, Kasikorn Bank); or
• A branch of a Financial Institution that is not a resident of Thailand, but which is located in Thailand (such as Citibank, Hong Kong and Shanghai Banking Corporation Ltd).

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. 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 of:

• 31 December 2022,
• 15 August 2023, and
• 31 December 2023.

2. A residency for tax purposes shall be determined from the current residence address that is the most up-to-date information of an Account Holder’s current residence address a Reporting Financial Institution has and that is not a mailing address used for the submission of documents.

3. If a Reporting Financial Institution does not have an Account Holder's current residence address the Reporting Financial Institution shall search the electronic database information it has for indications of the residence address.

4. For indications of any residence addresses being in Reportable Jurisdictions, 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.

5. For Existing Lower-Value Accounts of individuals that are Reportable Accounts, Reporting Financial Institutions shall report them to the Revenue Department by 30th June 2024.

3. 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 of:

• 31 December 2022,
• 15 August 2023, and
• 31 December 2023.

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

3. If electronic database information of a Reporting Financial Institution does not indicate a current residence address the Reporting Financial Institution shall then review its paper files for documentary evidence of the current residence address that was obtained by the Reporting Financial Institution within the last 5 years.

4. For Existing Higher-Value Accounts of individuals that are Reportable Accounts, Reporting Financial Institutions shall report them to the Revenue Department by:

• 16th September 2023 for accounts as of 31 Dec 2022, and
• 30th June 2024 for accounts as of 15 Aug 2023 and 31 Dec 2023.

4. 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,
• 15 August 2023, 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 an Existing Account of corporate entities that are a Reportable Account a Reporting Financial Institution shall report them to the Revenue Department by 30th June 2024.

5. New Accounts of Individuals

1. New Accounts of individuals are accounts opened on or after 16 August 2023.

2. A Reporting Financial Institution shall obtain a self-certification that allows the Reporting Financial Institution to determine the Account Holder’s residence, and shall verify the self-certification to documentary evidence on opening accounts.

3. If a self-certification and documentary evidence shows an Account Holder is a resident of a Reportable Jurisdiction the account shall be treated as a Reportable Account and the Reporting Financial Institution shall report the Account Holder's date of birth and TIN in the Reportable Jurisdiction to the Revenue Department.

6. New Accounts of Corporate Entities

1. New Accounts of corporate entities are those that are opened on or after 16 August 2023.

2. A Reporting Financial Institution shall perform the prescribed due diligence review procedures for such accounts and if it is found the account is held by a Reportable Person or held by one or more Controlling Persons who is or are a Reportable Person, the account shall be treated as a Reportable Account, and reported to the Revenue Department.

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