BDO in Thailand

In this edition of BDO M&A Horizons, we explore the evolving M&A landscape, with a special focus on Central America, highlighting regional opportunities and cross-border investment potential.

ACCOUNTING IMPACT The Exposure Draft proposes a revision to IAS 28, which might significantly affect entities that apply the equity method. Entities with loss-making associates or joint ventures and entities with transactions with associates or joint ventures might be particularly affected due to the clarifications and measurement changes proposed by the Exposure Draft.  

The Revenue Department invites taxpayers to take advantage of the tax deduction benefits offered under the Easy E-Receipt 2.0 initiative. This measure is designed to stimulate the economy through domestic spending and promote the use of electronic systems. It allows personal income taxpayers to deduct the cost of goods or services purchased between January 16, 2025, and February 28, 2025, as a tax allowance. The eligible purchases must meet the prescribed conditions and can be deducted up to the actual amount spent, with a maximum limit of 50,000 baht. However, taxpayers must obtain either an e-Tax Invoice or an e-Receipt, with the correct name and tax ID, as proof of their expenditures

Top of mind for many as a new administration takes office is the potential introduction of additional tariffs on imports into the US, which carries implications for global business and directly impacts many countries. This issue features perspectives on the tariffs from Canada and the US, and BDO will be hosting several webinars to provide guidance on how to navigate the evolving trade landscape. 

An emergency decree enacted on 25 December 2024 (Top-Up Tax Emergency Decree, B.E. 2567 (2024)) and published in the Thailand Royal Gazette on 26 December implements a domestic minimum top-up tax, income inclusion rule (IIR) and undertaxed payment rule (UTPR) that are aligned with Pillar Two. The decree, which applies for accounting periods starting on or after 1 January 2025, was confirmed by the House of Representatives and Senate on 8 and 13 January, respectively.

Following an extensive investigation by the Department of Business Development (DBD) into businesses using Thai nominee structures in key sectors such as tourism, real estate, hospitality, and logistics, the DBD plans to inspect an additional 26,830 businesses in 2025. This expanded scrutiny will now include e-commerce and warehousing sectors.  

Explore Thailand's investment potential with BDO's comprehensive roadmap for foreign investors. Navigate complex regulations and unlock business opportunities with a clear, proactive strategy for success in Thailand's diverse market.