- Thailand has in force a double tax treaty with each of the countries having a Foreign Chamber of Commerce in Thailand.
- Thailand does not have domestic law provisions to implement tax treaty which provide for disclosure and exchange of taxpayer information between the Revenue Department and the taxation authorities of a tax treaty partner country. In fact, under Thailand's Revenue Code, taxpayer information is an "official secret".
- For example, the continued existence of the United States of America/Thailand double tax treaty is conditioned on Thailand enacting legislation authorizing disclosure of taxpayer information. The U.S.A./Thailand Double Tax Treaty is unique in that it will terminate on 1 January 2003 unless by 30 June 2002 the United States has received a diplomatic note from Thailand indicating that Thailand will exchange information on taxation matters (and taxpayers) to the same manner and extent that the United States discloses such information to its tax treaty partners.
- Transparency is essential to facilitate international business and commerce. Thailand should now enact legislation to authorize taxation officials to make exchanges and disclosures of taxpayer information, on a country-to-country basis, to the fullest extent allowed by Thailand's bilateral double tax treaties.
Excerpt Of Thai Law Forbidding Disclosure Of Information In Tax Matters
Sections are from Thailand's Revenue Code:
Section 10: An officer who has by virtue of his office under this Title acquired information on the business of a taxpayer or of any other person concerned shall not divulge or otherwise communicate such information to any person, unless authorized to do so by law.
Revelation Of Taxpayer Information:
Section 10 bis. For the purpose of administration of taxes and revelation of duties, the Director-General shall have the power to reveal the following information:
- Names of registrants for the purpose of value added tax, tax base and amount of value added tax additionally assessed in respect of such registrants.
- Names of taxpayers and amount of tax paid.
- Names of auditors and their behavior in connection with the audit and certification of accounts under Section 3 septem.
provided, however, that the regulations prescribed by the Minister shall be observed.
Punishment For Violation Of Secrecy:
Section 13. Any officer who contravenes the provisions of Section 10 shall be guilty and punished with a fine not exceeding 500 baht or imprisonment not exceeding 6 months or both.
List Of Countries Of Foreign Chambers Of Commerce In Thailand
With Double Taxation Treaties With Thailand
Date Treaty Signed
Date Ratification Exchanged
1. United States of America
26 November 1996
15 December 1997
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.