On 23 Dec 2022, Thailand's Director-General of Revenue issued a news release announcing the Thailand Revenue Department will commence 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 which are as follows:

Effective

For financial years of MNE Groups 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

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

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

2. An entity of an MNE Group that's carrying on business in Thailand under 1.2 is however exempt from the obligation to file a CbC Report when:

1. The Ultimate Parent Entity not established under the laws of Thailand has appointed a Surrogate Parent Entity to file the CbC Report;
2. The residence country of the Surrogate Parent Entity requires the filing of CbC Reports to the competent authority of the residence country;
   
3. The residence country of the Surrogate Parent Entity has entered into an agreement for exchange of information with Thailand that's in force;
4. The residence country of the Surrogate Parent Entity has not notified any failure of its exchange of information system;
5. The Surrogate Parent Entity has notified its surrogate status to its country competent authority; and
6. The entity of the MNE Group that's carrying on business in Thailand under 1.2 has notified the Surrogate Parent Entity 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 MNE Group'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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