ey-global-tax-policy-outlook-for-2015

Thailand
2.8 Key tax policy changes in 2014
•
tax bill in November. Under this bill, the tax will be 10%
on estates valued at over THB50 million (approximately
US$1.5 million) and 5% on gifts transferred to heirs before
the principal’s death. Provided it passes deliberation by the
second half of 2015.
• A draft land and buildings tax is being prepared, although it is
unlikely to be effective before 2016.
• The Cabinet has approved a law to reduce tax evasion by
independent professionals, partnerships and bodies of
persons, which plugs loopholes whereby members of bodies
of persons were not required to include their share of the
body’s income in their personal income tax reporting and
partners could deduct certain expenses as a lump sum, even
if no actual expenses were incurred. The changes may be
effective for the 2015 tax year.
2.9 Country position on OECD Base Erosion
and Prot Shifting (BEPS) Action Plan
•
or action plans haves no impact on the Thai tax authority’s
interpretations and positions.
• The Thai tax authority generally refers to domestic tax laws
and relevant tax treaties to determine Thai tax treatment
of cross-border transactions. Where the tax authority
believes a multinational company may have attempted to
is likely to question or challenge the business purpose and
a dispute or trigger a tax audit.
• There is one newly signed tax treaty with Estonia, which
became effective on 1 January 2014.
•
promoting investment in Thailand and grants tax and
outbound as well as inbound investment, and it will propose
incentives for inbound investments that are more industrybased
than location-based, in order to promote new regional
industry clusters. As a result, the number of activities eligible
for promotion will be reduced by about 50. Priority activities
will be given the maximum eight-year CIT exemption, and
these include biotechnology, research and development,
production of electricity or steam power from refuse-derived
design and embedded software development. For outbound
and informing companies making outbound investments.
•
Thailand as an international trading center for the
the process of drafting tax incentives for International
Headquarters (IHQ), while the IHQ has already replaced
eligible activity list.
182 | The outlook for global tax policy in 2015