Thailand: Transfer Pricing Legislation Implemented

New transfer pricing rules in Thailand go into effect January 1, 2019. The key provisions of the legislation include the following:

• The tax authority’s ability to make its own assessment of additional revenue on related-party transactions.
• Introducing the definition of “related parties,” i.e., a person directly or indirectly holding at 50 percent of the share capital of the other entity; or a shareholder directly or indirectly holding at 50 percent of the share capital of both entities; or a person who has a dependent relationship through participation in the capital, management or control of another entity as defined by the relevant regulations.
• Safe harbor exemption from transfer pricing documentation applies to entities with annual revenue of less than THB 200 million.
• Entities who fail to submit the required transfer pricing documentation are liable for a penalty of up to THB 200,000.