Thailand intends to begin Common Reporting Standard exchange in September 2023

Thailand intends to begin Common Reporting Standard exchange in September 2023

The Common Reporting Standard (CRS) is a global initiative aimed at combating tax evasion by establishing a standardized framework for the automatic exchange of financial information among tax authorities of different countries. Thailand, as a participant in this initiative, has implemented CRS reporting requirements to enhance transparency and cooperation in the realm of taxation.

Interim Measure - Royal Act for the Exchange of Information B.E. 2566

Under the interim measure announced earlier this year, Royal Act for the Exchange of Information B.E. 2566, reporting entities were to have completed reporting to the Thai Revenue Department by June 2023 so the Thai government could meet their obligation to exchange information with other jurisdictions in September 2023. This first year of reporting obligations were required for individual high-value and entity pre-existing accounts.

CRS Reporting person(s) in Thailand

In Thailand, financial institutions are the primary entities responsible for CRS reporting. This includes banks, insurance companies, investment funds, and other financial intermediaries. They are obligated to identify reportable accounts, collect the necessary information, and report it to the Thai Revenue Department.

Under Thai regulations, reportable accounts typically include:

• Accounts held by non-resident individuals.

• Accounts held by non-resident entities.

• Cash value insurance contracts.

• Certain investment vehicles and financial products.

It's crucial for financial institutions to have robust due diligence procedures in place to identify these reportable accounts and collect the necessary reportable information.

What are the amendments to the CRS in 2024?

Starting in 2024, financial institutions shall expand reporting to include any new and Individual low value accounts. Going forward, Thai financial institutions typically must submit CRS reports to the Thai Revenue Department by June of each year, covering the previous calendar year's data. It's crucial for institutions to meet these deadlines to avoid penalties.

Penalties for non-compliance

Non-compliance with CRS reporting requirements can result in severe penalties, including fines (maximum of THB 200,000) and imprisonment. Thai authorities take this issue seriously to deter tax evasion and maintain the integrity of the financial system.

Thailand's commitment to the Common Reporting Standard reflects its dedication to combating tax evasion, enhancing transparency, and fostering international cooperation in taxation matters. Financial institutions in Thailand must comply with rigorous due diligence procedures and reporting requirements to ensure the successful implementation of CRS regulations. By doing so, Thailand contributes to the global effort to create a fairer and more transparent financial landscape.

How TAINA can help

We have seen that many financial institutions in the Asia Pacific region face common CRS compliance challenges associated with tax form validation, data error remediation, manual tax operations and poor customer experience.  CRS reportable information is gathered during due diligence at account opening through the collection of a self-certification form provided by the reportable account holders. Forms CRS-E, CRS-I, and CRS-CP are currently supported by TAINA to aid in the collection and validation of information needed to complete CRS reporting. TAINA also offers a CRS/FATCA dual form journey ensuring compliance to the major Tax regimes financial institutions must follow.

Minimise the risk of non-compliance through TAINA’s automated solution to create a seamless end to end CRS validation process, which kept up to date by industry leading tax technical SME’s who continuously monitor global regulations. The TAINA platform is already being used at scale by the world’s largest and most sophisticated financial institutions to transform their regulatory compliance and customer experience.  TAINA has helped its clients eliminate the pain and risk associated with manual tax form validation, whilst achieving significant cost savings, efficiency gains, and improved customer experience.  

We would love to talk to you more about your current documentation validation process and how our award-winning FATCA and CRS Validation platform may add value to your organisation.

For more information on how our fully automated FATCA and CRS Validation platform can add value to your business, get in touch or request a demo to see it in action.