TAX NEWS - 2010

Thailand Tax: Bilateral advance pricing agreement (Bilateral APA)

Thailand Revenue Department has issued a practical manual that outlines the steps and procedures for taxpayers wishing to apply for a bilateral advance pricing agreement (APA) with the Thai Revenue Department and a foreign tax authority. Since the transfer pricing guidelines were issued in 2002, the Thai authorities have accepted bilateral APA applications under tax treaties, a few of which have been finalized successfully.

The new APA guidance is designed to provide transparency and direction to taxpayers and the tax authorities with respect to the methodologies, terms and requirements for an APA. Notably, the APA guidance was not issued under Thai tax law, so it does not have legal effect. However, there is an expectation from the Thai Revenue Department that taxpayers will adhere to the requirements set out in the guidance.