International Exchange of Financial and Tax Information 2023

In 2022, we posted the article “Automatic Exchange of Information (AEOI) 2022” which has been effective from January 1, 2022, since then Thai financial institutions have been required to collect and share financial accounts and tax information with the Thai Revenue Department to comply with the automatic exchange of information (AEOI) requirements set by the Convention on Mutual Administrative Assistance in Tax Matters (MAAC).

From September 2023, Thailand must comply with its obligations in exchanging tax information according to the agreements or conventions for avoiding double taxation and preventing tax avoidance and the Multilateral Treaty Agreement on Tax Administration Assistance. As well as to comply with obligations for the automatic exchange of financial accounting information under the Multilateral Agreements between authorized officials to exchange financial account information automatically.

Together with Thailand is a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes, which is a framework for cooperation on the exchange of tax information among cooperative organizations, economic and development (Organization for Economic Cooperation and Development), Thailand, therefore, needs to implement an automatic exchange of requested tax information and financial accounting information with the parties to the said agreement.

WHEN TO EXCHANGE OF INFORMATION

The authorized officials of Thailand have the authority to exchange information as requested by the competent officials of the contracting parties, provided that such exchange of information benefits the management of tax collection and enforcement of tax laws of the requesting party and the exchange of information related to persons who are undergoing inspection, investigation, prosecution, or tax enforcement by the requesting party, the information includes personal data related to such persons.

INFORMATION TO BE EXCHANGED

The information to be exchanged is as follows;

(1) Information about the account owner or the person with control over the account owner, including name, address, taxpayer identification number, date of birth, and place of birth.
(2) Information about financial accounts, including account number, balance or cash value in the policy, and interest received. Or any other benefits as specified by the Director-General.
(3) Information about the person who has to report, including the name and identification number of the person who has to report. Such information shall be as of the end of the calendar year.
(4) Other information as specified by the Director-General of the Minister of Finance.

EXCHANGE OF FINANCIAL AND TAX INFORMATION IN CONCLUSION

This operation is new and complex in practice. Therefore, it takes some time for Thai financial institutions to operate in exchange for information in their possession. However, as in every country, tax authorities in Thailand will do their best to recover any amount of Taxes, so be prepared and consult us.

However, if the financial institution of Thailand cannot exchange information within the said deadline. Thailand will be classified as a country that does not cooperate on tax with the European Union and OECD countries, which are important trading partners. This will have a severe and unavoidable impact on the economic stability of the country.