To support more stringent transfer pricing compliance and enforcement regimes, tax authorities in Thailand and Malaysia have recently released new or updated related party disclosure forms to be submitted with the corporate income tax return.
A summary of the key changes is provided below:
Thailand: New Related Party Disclosure Form
Following the new amendment in Thai Revenue Code Section 71 ter Paragraph 1, the Revenue Department of Thailand (“RDT”) released an official transfer pricing disclosure form on November 7, 2019. Thai taxpayers with total revenue of at least THB 200 million are required to file the transfer pricing disclosure form with the corporate income tax return, which is due May 30, 2020 for companies with a December 31 year end.
The transfer pricing disclosure form is comprehensive and requires detailed information on related parties and transactions as well as on activities at the group level such as business restructuring and transfers of intangible assets.
As Thailand increases its focus on transfer pricing enforcement the information contained in the form will be a primary screening tool to identify high risk transactions and taxpayers for further investigation.
The official disclosure form can be found here.
Malaysia: New Form C for Year of Assessment 2019
The Inland Revenue Board (“IRB”) released the amended corporate tax return - Form e-C for the year of assessment (“YA”) 2019. Taxpayers are now required to disclose additional information pertaining to related party transactions and complete a schedule with a breakdown of “total other expenses” and “other income” items into categories including management fees, cost contribution arrangements, R&D expenses, amongst other informative categories.
The amendment is a signal that the IRB is further strengthening its data gathering and screening processes to enable more precision in its transfer pricing investigations and audits.
The amended return form C is available here.