On 15 Aug 2023, a Thailand Ministerial Regulation was gazetted, enacting the Automatic Exchange of Information Common Reporting Standard laws.
The details in this Tax Insight have been updated from the prescriptions in the Ministerial Regulation.
The Common Reporting Standard
The Common Reporting Standard is the core law for the Automatic Exchange of Information, that requires Reporting Financial Institutions to collect and report financial information to the tax authority of the Jurisdiction they’re in for the tax authority to exchange that information with Participating Jurisdictions.
It is a standard set of due diligence review and reporting rules for all Reporting Financial Institutions in Participating Jurisdictions, to ensure a consistent scope and quality of financial information that is exchanged.
The Thailand Common Reporting Standard Laws
1. Definitions
1. A Financial Institution is:
- A depository institution that accepts deposits in the course of banking;
- A custodial institution that holds financial accounts for customers;
- An investment entity that conducts trading in money markets or foreign exchange, interest rates, securities or futures, or portfolio management or investing or managing financial assets; or
- An insurance company that issues or makes payments with respect to a cash value insurance contract or an annuity contract.
2. A Reporting Financial Institution is:
- A Financial Institution that’s a resident of Thailand but not including any branch of that Financial Institution that is located outside Thailand (such as branches located outside Thailand of Krungthai Bank, Bangkok Bank, Siam Commercial Bank, Kasikorn Bank); or
- A branch of a Financial Institution that is not a resident of Thailand, but which is located in Thailand (such as Citibank, Hong Kong and Shanghai Banking Corporation Ltd).
3. A Reportable Account is an account of an individual or corporate entity that’s held by one or more Reportable Persons or one or more Controlling Reportable Persons that a Reporting Financial Institution identifies and determines to be a resident of a Reportable Jurisdiction according to its CRS due diligence review.
4. A Reportable Jurisdiction is a Participating Jurisdiction under the agreements for the Automatic Exchange of Information and Common Reporting Standard to which Jurisdiction there is an obligation to provide financial information.
2. Existing Lower-Value Accounts of Individuals
1. Existing Lower-Value Accounts of Individuals are accounts that existed before 16 August 2023 having a total balance or value not exceeding 30 million baht on the following dates:
- 31 December 2022;
- 15 August 2023.
2. Residency for tax purposes shall be determined from the current residence address that is the most up-to-date information of an Account Holder’s current residence address that a Reporting Financial Institution has, and that is not an address used for the submission of documents.
3. If a Reporting Financial Institution doesn’t have a current residence address for an Account Holder that is believed, the Reporting Financial Institution shall search electronic database information the Reporting Financial Institution has for indications of the current residence address for the Account Holder.
4. If any indication is found the current residence address is in a Reportable Jurisdiction, a Reporting Financial Institution shall treat the Account Holder’s account as a Reportable Account for each of the Reportable Jurisdictions that indications are found unless the due diligence review procedures provide an exception for the Reporting Financial Institution not to do so.
5. For Existing Lower-Value Accounts of Individuals thats a Reportable Account, Reporting Financial Institutions shall report it to the Revenue Department by:
- 30 June 2024.
3. Existing High-Value Accounts of Individuals
1. Existing High-Value Accounts of Individuals are accounts that existed prior to 16 August 2023 having a total balance or value exceeding 30 million baht on the following dates:
- 31 December 2022;
- 15 August 2023;
- 31 December 2023;
- 31 December 2024.
2. A Reporting Financial Institution shall search electronic database information that a Reporting Financial Institution has for an indication the current residence address of the Account Holder is in a Reportable Jurisdiction.
3. If a Reporting Financial Institution’s electronic database information does not show indications information, a Reporting Financial Institution shall then review paper files for any documentary evidence of the current residence address that was obtained by the Reporting Financial Institution within the last 5 years.
4. For Existing High-Value Accounts of Individuals that are a Reportable Account, Reporting Financial Institutions shall report them to the Revenue Department as follows:
- Accounts as at 31 Dec 2022 shall be reported by 16 Sep 2023;
- Accounts as at 15 Aug 2023 shall be reported by 30 June 2024;
- Accounts as at 31 Dec 2023 shall be reported by 30 June 2024;
- Accounts as at 31 Dec 2024 shall be reported by 30 June 2025.
4. Existing Accounts of Corporate Entities
1. Existing Accounts of Corporate Entities are accounts that existed prior to 16 August 2023 having a total balance or value exceeding 7.5 million baht on the following dates:
- 31 December 2022;
- 15 August 2023;
- 31 December 2023;
- 31 December 2024.
2. A Reporting Financial Institution shall perform the prescribed due diligence review procedures for such accounts, for the purposes of identifying accounts held by a Reportable Person or held by one or more Controlling Persons who is or are a Reportable Person.
3. For an Existing Account of Corporate Entities that are a Reportable Account a Reporting Financial Institution shall report them to the Revenue Department as follows:
- Accounts as at 31 Dec 2022 shall be reported by 30 June 2024;
- Accounts as at 15 Aug 2023 shall be reported by 30 June 2024;
- Accounts as at 31 Dec 2023 shall be reported by 30 June 2024;
- Accounts as at 31 Dec 2024 shall be reported by 30 June 2025.
5. New Accounts of Individuals
1. New Accounts of individuals are accounts opened on or after 16 August 2023.
2. A Reporting Financial Institution shall obtain a self-certification that allows the Reporting Financial Institution to determine the Account Holder’s residence(s) for tax purposes, and shall check the self-certification to documentary evidence that is obtained by the Reporting Financial Institution in connection with the opening of the account.
3. If a self-certification shows an Account Holder is a resident for tax purposes of a Reportable Jurisdiction, a Reporting Financial Institution shall treat the account as a Reportable Account, and shall report the Account Holder’s date of birth and TIN in the Reportable Jurisdiction to the Revenue Department.
6. New Accounts of Corporate Entities
1. New Accounts of corporate entities are accounts that are opened on or after 16 August 2023.
2. A Reporting Financial Institution shall perform the prescribed due diligence review procedures for such accounts and if it is found the account is held by a Reportable Person or held by one or more Controlling Persons who is or are a Reportable Person, the account shall be treated as a Reportable Account and shall be reported to the Revenue Department.