On 23 Dec 2022, Thailand's Director-General of Revenue issued a news release announcing Thailand's official signing and formal entering into the Multilateral Competent Authority Agreement for Exchange of Country-by-Country Reports.

And announcing that the Thailand Revenue Dept would begin exchanging CbC Reports with the tax authorities of other countries for multinational company's financial years beginning on or after 1 January 2021 in the month of June 2023.

The Multilateral Agreement for CbC Reporting

The Multilateral Competent Authority Agreement for Exchange of Country-by- Country Reports (CbC MCAA) is a developed tool of the OECD and the G20 for assisting countries to tackle base erosion and profit shifting by Multinational Enterprises.

The CbC MCAA sets out the rules and procedures for Competent Authorities of countries implementing the BEPS Action 13 to automatically exchange the CbC Reports of Multinational Enterprises with the tax authorities of the countries in which Multinational Enterprises operate.

Thailand's Country-by-Country Reporting Rules

The Director-General's Notification on Income Tax (No 408) dated 30 Sep 2021, prescribes the Thailand CbC Reporting rules, which are largely the OECD Model rules, and are as follows:

Effective

For corporate financial years beginning on or after 1 January 2021.

Applicability

Multinational Enterprise (MNE) Groups having consolidated revenues of 28 Billion Baht or more for the fiscal year immediately prior to the year of CbC Reporting.

Filing Obligation

The corporate entities of MNE Groups that have an obligation to file a CbC Report with the Thailand Revenue Department are as follows:

1. The Ultimate Parent Entity of the Group - If the Ultimate Parent Entity is established under the laws of Thailand; or
2. An entity of the Group carrying on business in Thailand - If the Ultimate Parent Entity is not required to file a CbC Report in its country of residence, or if the Ultimate Parent Entity's country of residence has not entered into an exchange of information agreement with Thailand or entered into an exchange of information agreement that's not yet effective or if there is a failure of or the exchange of information system cannot be used.

A corporate entity of a Group carrying on business in Thailand under 2 above may however be exempt from the obligation to file a CbC Report if:

• The Ultimate Parent Entity appointed a Surrogate Parent Entity to file the CbC Report under the laws of the country of the Surrogate;
• The country of the Surrogate Parent Entity entered into an exchange of information agreement with Thailand that's in force;
• The country of the Surrogate Parent Entity has not notified the Thailand Revenue Dept of any failure of the exchange of information system;
• The Surrogate Parent Entity notified its country competent authority of its surrogate status; or
• The corporate entity of the MNE Group carrying on business in Thailand under 2 above has notified the Surrogate to the Thailand Revenue Dept. 

Filing Format

The CbC Report shall be filed in the format of the Country-by-Country Reporting XML Schema of the OECD.

Filing Language

The CbC Report shall be filed in the English language.

Filing Deadlines

The CbC Report shall be filed no later than the following dates:

• For Ultimate Parent Entities and Surrogate Parent Entities: No later than 12 months after the multinational's fiscal year end*; and
• For entities other than the above: No later than 60 days after receipt of the Revenue Department's written notice to file a CbC Report*.

* As amended by the Ministerial Regulation issued on 23 December 2021.

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