Thailand set to change monetary data to combat transnational tax evasion

The Revenue Department of Thailand is ready to boost its efforts to combat transnational tax evasion by way of the change of financial information, according to its director-general, Lavaron Sangsnit. Thailand joined the Global Forum on Transparency and Exchange of Information for Tax Purposes in 2017 and has since been working in the direction of adhering to worldwide standards for tax cooperation.
The Convention on Mutual Administrative Assistance in Tax Matters (MAAC) is a multilateral treaty developed by the Organisation for Economic Co-operation and Development (OECD) and has 168 signatories as of March 2023. The framework promotes worldwide cooperation and the trade of tax information between international locations, enabling tax authorities to successfully utilise the info.
There are three kinds of data exchanges underneath the MAAC: requested information exchange, spontaneous trade of information, and automated unsolicited trade of information. The Revenue Department is currently preparing procedures and techniques associated to the automated change of information, which includes three information units.
For the accounting 12 months 2021, multinational companies meeting particular situations are required to submit a Country-by-Country Report from January 1, 2022. This report contains mixture information on the worldwide allocation of earnings, taxes paid, and economic activity among tax jurisdictions by which the companies function. The purpose of this report is to improve switch pricing documentation and provide tax administrations with information for high-level transfer pricing danger assessment.
Thailand signed the Multilateral Competent Authority International Agreement on the Exchange of Country Reports on December 9, 2022, and expects to start exchanging nation reports this month. The information gathered will be used for efficient tax administration, promoting tax transparency, equity, and prevention of transnational tax evasion, as properly as enhancing Thailand’s worldwide competitiveness for funding.
The OECD’s common reporting commonplace (CRS) requires the Revenue Department to acquire details about multinational corporations from their financial institutions and automatically trade that information with tax authorities of other jurisdictions. Thailand plans to start CRS trade in September 2023.
Thailand enacted a royal decree on data exchange on March 31, 2023, to implement world requirements and enhance transparency in accordance with the CRS requirements. Unlock said that the department is in the means of bringing the signed MAAC settlement to parliament for ratification. Once ratified, Thailand will want to implement the required worldwide requirements and procedures for information collection and automatic trade..

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