The Related-Party Report under Section 71 ter (Transfer Pricing Disclosure Form): What Must Be Prepared?

Last updated 1 October 2026 (B.E. 2569)

Who must file the report under Section 71 ter

Paragraph one of Section 71 ter of the Revenue Code requires a company or juristic partnership that is related to another company or juristic partnership to prepare a report on its related juristic persons and the total value of the transactions between them, and to file it with the assessment official together with its return within the prescribed deadline.¹ The duty arises from the existence of the relationship, not from the existence of transactions.

A common misunderstanding is that a business with no purchases, sales or loans with its affiliates in a given year need not file. The statute states clearly that the duty applies whether or not the relationship exists throughout the accounting period, and whether or not there are transactions between the parties in that accounting period. Once the relationship exists and revenue reaches the threshold, the duty to file arises. Whether the transaction-value fields are completed with zero or left blank is a separate matter from the obligation to file the form.

In practice, the Revenue Department describes the persons required to file in terms of two cumulative conditions: a relationship within the meaning of paragraph two of Section 71 bis, and total revenue, according to the financial statements filed with the P.N.D. 50 return, of not less than two hundred million baht.² This wording differs from clause 1 of Ministerial Regulation No. 370, which exempts businesses with revenue of not more than two hundred million baht. A business whose revenue is exactly two hundred million baht should therefore rely primarily on the wording of the Ministerial Regulation.

How a relationship between juristic persons is defined

The relationship that triggers the duty under Section 71 ter uses the same definition as paragraph two of Section 71 bis, which covers three cases. In the first, one juristic person holds shares in, or is a partner in, another juristic person amounting to not less than fifty percent of the total capital. In the second, the same shareholder holds shares in both juristic persons amounting to not less than fifty percent of the total capital. In the third, the juristic persons are related in terms of capital, management or control such that they cannot operate independently of each other, as prescribed by ministerial regulation.²

The first two cases count both direct and indirect shareholdings, so holding through an intermediate company does not take a business outside the threshold. The third case is the hardest to assess, because there is no figure to rely on and the statute leaves the nature of the relationship to be prescribed by ministerial regulation; the ministerial regulation in force at the relevant time must therefore also be checked. Examples of situations that call for caution include businesses with no cross-shareholding at all that nevertheless have the same board of directors, use a common management system, or depend on a single trading partner to the point of having no bargaining power.

Once it is concluded that the definition is met, the next step is to consider whether the prices used between the parties are those that independent parties would set, because that is the point at which the assessment official may exercise the power to make adjustments. The legal basis for that power is explained in The assessment official’s power to adjust transfer prices under Section 71 bis (Thai).

The two-hundred-million-baht revenue threshold

Paragraph three of Section 71 ter exempts from the duties under that section a company or juristic partnership whose revenue from or in consequence of its business in the accounting period does not exceed the amount prescribed by ministerial regulation, which must be not less than two hundred million baht.³ Clause 1 of Ministerial Regulation No. 370 (B.E. 2563 (2020)) sets that amount at not more than two hundred million baht.⁴ A company with revenue below this line is therefore not required to file the report.

It is important to be clear that the two-hundred-million-baht threshold exempts only the duties under Section 71 ter, namely filing the annual report and submitting documents or evidence upon receipt of a written notice. It does not exempt a business from the power to adjust transfer prices under Section 71 bis. A company with revenue of fifty million baht that sells goods to its parent company below the price that should apply can still have its income adjusted in the ordinary way; it simply has no duty under Section 71 ter.

Filing deadline and the accounting periods to which the duty applies

Paragraph one of Section 71 ter requires the report to be filed together with the return within the prescribed deadline,¹ that is, together with the corporate income tax return for the accounting period. The starting point of the duty is found in the transitional provision of the Revenue Code Amendment Act (No. 47) B.E. 2561 (2018), which applies the provisions to income of companies or juristic partnerships whose accounting periods begin on or after 1 January 2019 (B.E. 2562).⁵

Clause 2 of Ministerial Regulation No. 370 sets the same effective date for the revenue threshold, namely income for accounting periods beginning on or after 1 January 2019 (B.E. 2562).⁶

Information to be reported in the form

The annual report form under Section 71 ter divides the information into three parts. The first is a list of related juristic persons, indicating whether each carries on business in Thailand, its country of incorporation, and whether there were transactions with it. The second is the value of controlled transactions by type. The third covers other details concerning structure and intangible assets.²

The types of transaction whose values must be shown separately in the second part are: purchases of raw materials and goods; purchases of land, buildings and equipment; royalties; management fees, technical service fees or commissions; interest paid; other expenses; and loans made and loans received.

The third part is the one businesses tend to complete with the least care, because it asks about the obligation to prepare consolidated financial statements, any business restructuring in that accounting period, its effect on revenue, cost and gross profit, and any disposal of intangible assets. The answers in this part are what the assessment official uses to screen whether to call for further documents.

Documents the assessment official may call for within five years

Paragraph two of Section 71 ter allows the assessment official, with the approval of the Director-General, to issue a written notice requiring documents or evidence to be submitted within five years from the date the report was filed. The recipient of the written notice must comply within sixty days from the date of receiving it, unless there is a necessary reason, in which case the Director-General may permit an extension, but not beyond one hundred twenty days; and, only where the written notice is received for the first time, compliance is required within one hundred eighty days from the date of receiving that notice.⁷ This set of documents is what the tax community calls the Local File, a term taken from the framework of the Organisation for Economic Co-operation and Development; under Thai law, however, its legal basis is this paragraph.

This time frame is why documents must be prepared in advance. One hundred eighty days for a first written notice, or sixty days for subsequent notices, may sound generous; but if one has to go back and find the contracts, invoices and comparable data for an accounting period four years earlier, after the person originally responsible has left, that time is barely enough.

The scope of this power is also wider than many businesses expect, because the law uses the words “documents or evidence” and does not limit them to a report in any particular format. If you would like our team to help assemble the documentation before it is requested, see the scope of work in our transfer pricing services.

Penalties under Section 35 ter

Section 35 ter of the Revenue Code provides that any person who fails to comply with Section 71 ter, or who files a report, document or evidence showing incorrect or incomplete information without reasonable cause, is liable to a fine of not more than two hundred thousand baht.⁸ The penalty therefore covers both failure to file and incomplete filing.

The words “without reasonable cause” are the remaining line of defense, but planning should not rely on them, because the burden of explanation falls on the business, and a deficiency that results from not having kept documents from the outset is harder to explain than one caused by external circumstances.

Preparing documents before they are requested

The practice that reduces risk the most is to keep the documents supporting the pricing in the same accounting period in which the transactions occur, rather than waiting until a written notice under paragraph two of Section 71 ter is received, because the period of one hundred eighty days (first written notice) or sixty days (subsequent notices) runs from the date the written notice is received, not from the date the search for documents begins.

The minimum set of documents should include: written contracts or agreements with related juristic persons; a description of the functions performed, the assets used and the risks assumed by each party; the reasons for selecting the pricing method; the comparable data used, together with the dates on which it was searched; and the separate financial statements of each company in the group.

For a business crossing the two-hundred-million-baht line for the first time, both the shareholding structure and past related-party transactions should also be reviewed, because earlier accounting periods that did not reach the reporting threshold remain within the scope of the adjustment power under Section 71 bis all the same. An overview of planning in this area is in the introductory guide to transfer pricing.

Frequently asked questions

The four questions we receive most often about the report under Section 71 ter concern years with no transactions, how revenue is counted for the threshold, the difference between the annual report and documents requested later, and the consequences of late filing. Short answers to all four follow below.

Must the report be filed for a year with no transactions with affiliated companies at all?

Yes. Paragraph one of Section 71 ter ties the duty to the existence of a relationship with another juristic person, not to the existence of transactions. As long as revenue reaches the two-hundred-million-baht threshold and the relationship continues, the duty to file remains.

What revenue is counted toward the two-hundred-million-baht threshold?

The Revenue Department explains that it is the total revenue according to the financial statements filed with the P.N.D. 50 return for that accounting period, not only sales revenue and not only revenue from related trading partners.

Are the annual report and the documents the Revenue Department requests later the same document?

No, they are separate sets. The annual report is the duty under paragraph one, filed with the return every year. The documents or evidence under paragraph two are requested by the assessment official case by case within five years from the date the report is filed, with one hundred eighty days allowed for submission for a first written notice and sixty days for subsequent notices, which the Director-General may extend where necessary, but not beyond one hundred twenty days.

What happens if the report is filed late or incompletely?

This falls within Section 35 ter, which imposes a fine of not more than two hundred thousand baht, both for failure to comply with Section 71 ter and for showing incorrect or incomplete information without reasonable cause.