APA and MAP Support in Thailand
Support for advance pricing arrangements (APA) and the mutual agreement procedure (MAP) in transfer pricing disputes and cross-border double taxation — from assessing whether your case is suitable, through preparing the documentation, to support throughout the process.
What APA and MAP mean for a business
A business with cross-border transactions between associated enterprises faces two risks at the same time. One is uncertainty as to whether the transfer pricing method it currently uses will be accepted by the Revenue Department. The other is the risk that a transfer pricing adjustment in one country will give rise to double taxation in another. The APA and MAP mechanisms are designed to address these risks, each in its own context.
When to consider an APA
An APA is not the right mechanism for every case. Whether an APA is a suitable option must always be assessed against the specific facts of each corporate group.
When to consider MAP
MAP is the mechanism to use once double taxation, or taxation not in accordance with a double tax agreement, has already arisen. Whether MAP is available must be assessed from the MAP article of the applicable agreement and the facts of the case.
Facts and documents needed to assess a case
Assessing whether a case is suited to an APA or to MAP, and how it can be taken forward, requires clear facts and a complete set of the relevant documents. The information to be gathered at the outset falls into three main categories: the structure of the corporate group, the nature of the transactions and the pricing method, and the relevant documents.
Scope of our services
Our services cover support for both APA and MAP, in whatever order each case requires, with an emphasis on assessing feasibility, organizing the facts, and supporting the process.
- Assessing the suitability and feasibility of the case. We analyze the preliminary facts to determine whether the case is suited to an APA or to MAP and whether it is sufficiently feasible in law and in fact, and we assess whether one route should be pursued or both considered in parallel.
- Organizing the facts and documents for the case. We help organize the information on the company structure, the nature of the transactions, the pricing method, and the relevant documents to meet the requirements of the APA or MAP process, as the basis for the next steps.
- Process support and coordination. We support you in following the process prescribed by the Revenue Department, coordinate the relevant parts, and advise at each stage of the process as the case requires.
- Analyzing the treaty articles and the relevant legal basis. We analyze the articles of the double tax agreement relevant to the case, in particular the MAP article and the article on associated enterprises, together with the relevant provisions of the Revenue Code.
How this relates to transfer pricing and DTAs
APA and MAP support is directly connected to two of the principal services in our international tax practice, which often need to be considered together, depending on the nature of each case.
In many cases, an APA that develops into a bilateral APA relies on the mechanisms of a DTA to proceed, while MAP cases typically arise in the context of transfer pricing disputes. In practice, the two services therefore complement each other.
Key provisions and legal references
Considering an APA or MAP under Thai law requires reading together the provisions of the Revenue Code, the guidelines issued by the Revenue Department, and the articles of the double tax agreement that applies to the case in question.
Discuss whether your case suits an APA or MAP
An assessment before starting an APA or MAP helps you choose the right route and saves time — contact us for an initial discussion.
+66 81 654 5922