As a follow-up to our previous Client Alert discussing Thailand’s having been Gray-Listed by the EU as a potentially non-cooperative tax jurisdiction, we note now that on 03 June 2020, Thailand went ahead and signed an amended version of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the “Convention”), thus making Thailand the 137th State to sign this agreement.
As a signatory state to the Convention, Thailand has agreed to legislated, implement, and follow the automatic exchange of information requirements known as The Common Reporting Standard (“CRS“) and Country-by-Country Reporting (“C-b-C“). These require the automatic exchange and reporting of certain taxpayer information on accounts of individuals and operations of international countries to other country revenue departments. The process for formalizing these automatic collection and reporting processes will begin in earnest once Thailand ratifies the agreement and deposits the instrument of ratification with the OECD.
Thailand has been given until 30 August 2021 to ratify the agreement or face being placed on the EU blacklist, which could result in significant tax related issues for Thai residents having investments outside Thailand. It is anticipated that Thailand will ratify the agreement by this deadline and then proceed to implement the collation and exchange procedures required thereunder.
While the actual timing of the initial exchanges of information are uncertain, we will continue to monitor for future developments.
While this document is updated on a regular basis, it has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice.