Thailand: Preferential tax regimes, status under BEPS | KPMG | US

Thailand: Preferential tax regimes, status under BEPS “harmful tax practices”

Thailand: Preferential tax regimes, status under BEPS

The Thai government—on joining the base erosion and profit shifting (BEPS) inclusive framework—agreed to implement certain minimum standards under Action 5 (harmful tax practices).

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A recent OECD BEPS harmful tax practices progress report concludes that several Thai tax incentives are preferential tax regimes, such as:

  • International headquarters—reported to be in process of being amended
  • Regional operating headquarters—reported to be in process of being amended
  • Treasury center—reported to be in process of being amended
  • International banking facilities—reported to be in the process of being eliminated/amended
  • International trade center—reported to be in the process of being eliminated/amended

KPMG observation

Without amendments to these regimes from the Thai government, Thailand could end up on the EU’s tax haven “blacklist” (expected to be adopted by 5 December 2017). 

Thai taxpayers operating under any of these identified preferential tax regimes may continue to carry on business as usual until changes to the regimes are enacted. However, prudent taxpayers would be aware there could be changes in the future.

 

Read a November 2017 report prepared by the KPMG member firm in Thailand

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