On 30 Sep 2021, Thailand's Director-General of Revenue issued Notification (No 407) prescribing the requirements for Thailand Transfer Pricing Local Files.

The Director-General's Notification (No 407)

A summary of the Director-General's Notification (No 407) follows:

Applicability

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

Filing Obligation

Thailand corporate entities that receive a notice from the Revenue Department under Section 71 ter paragraph two of the Revenue Code to provide a tax audit officer with documents and evidence about their related party transactions.

Information

The information to be provided in the Thailand Local File largely aligns with the OECD's Transfer Pricing Documentation for Local Files, which includes:

• Information about the local entity,
• Information about the controlled transactions (including a comparability analysis), and
• Financial information.

But a Thailand Local File does not need to have a comparability analysis when the local entity:

1. Does not have gross business income exceeding 500 million baht,
2. Does not have controlled transactions with related parties that pay a tax rate different from the local entity,
3. Does not have controlled transactions with overseas related parties, and
4. Does not have carried forward losses in a year and the related parties in controlled transactions do not have losses.

Language

The language of the File shall be the Thai language.

Purpose

For the tax audit officers' analysis of the related party transactions.

Method of Filing

The Local File shall be submitted according to the notice under Section 71 ter paragraph two of the Revenue Code, and shall be considered as having been submitted only after receiving an official receipt from the tax audit officer.

---