Snapshot: The happenings
Thailand has committed to new global regimes on exchanges of financial information among multiple jurisdictions by joining the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum) in early 2017, and approving in principle the bill to legislate for and implement the two reporting standards late last year. The interjurisdictional information exchanges can be automatic (annually) and on request. The automatic route — incorporating the globally recognized Common Reporting Standard (CRS) — will have more far-reaching impacts on both Thai financial institutions and wealth owners holding assets offshore. For the former, there will be ongoing compliance obligations to periodically furnish customers’ account information to the Revenue Department — much like FATCA (Foreign Account Tax Compliance Act), but with a much larger group of receiving jurisdictions. For the latter, their offshore wealth will likely be brought to light for the Revenue Department to see. Before being fully implemented — perhaps as soon as next year — there is much to be done to prepare for the CRS and its repercussions. We have prepared this newsletter to give you necessary background and our indicative views on the potential impacts on the financial industry in Thailand.