KTB’s Approach to tax
As Krungthai Kunnatham (Krungthai Integrity) is a major part of our core values, The Bank always believes that Good corporate governance is one of key fundamentals to drive long-term business growth and create a better society. Krungthai Bank operates transparently towards tax authorities by focusing on compliance and integrity. The Bank is mindful of our duties in managing & controlling of taxation affairs as well as ensuring compliance with filing obligations & tax disclosures.
The Bank has procedure in place to ensure that our operations, products and services are compliance with the spirit and letter of applicable tax laws in countries in which we operate. This approach applies to all Krungthai employees and management.
The approach encourages advance rulings from revenue authorities on all significant issues in order to mitigate uncertainty. The Bank monitors key material risks to ensure that tax risks are well managed and mitigated. Strategies, risks, internal controls relevant to tax functions are regularly reviewed.
The Bank also engage with external tax professional to seek for advisory opinions & supervisions on complex tax issues and tax opportunities that are in line with business strategy to maximize benefits of shareholders without leading to any legal violations.
Krungthai strictly complies with standards & regulatory requirements of revenue authorities where we operate our business. Adhering to the principle of transparency, we provide the disclosure of tax accounting with accurate details and reliable information in tax payments & tax reporting. The disclosure of finance and tax accounting is reported on time as specify in the legislative requirements. Tax filing and payment are always made within the due dates.
Krungthai pays legal taxes as imposed by revenue code and tax laws related to commercial transactions in which country the Bank operates and is committed not to transfer the value created to low tax jurisdictions.
The Bank does not engage in tax evasion by misusing tax structures without any commercial and economic substances. Secrecy jurisdictions or so-called “tax havens” are not used for the purpose of tax evasion, however being served as necessary only as a channel for funding and liquidity access, while also optimizing funding source concentration.
Krungthai undertakes transfer pricing using the arm’s length principle and do not use transfer pricing for any inappropriate purpose. Transfer pricing for any Krungthai intercompany transactions are conducted under the arm’s length principle. The Bank also prepared transfer pricing documentation including master file, local file and country to country report.
KTB Tax Reporting
Krungthai Bank is committed to a transparent approach towards taxation, we are providing clarity in the tax reporting which reflects economic contributions of each jurisdiction.
Case 1: Thailand vs Overseas
|untry||List of Entity||Business activities||Revenue||Profit (loss) before tax||Income tax accrued (current year)||Income tax paid||No. of Employee (FTE)|
|Thailand||Krung Thai Bank Public Company Limited and its subsidiaries (the Group)||Commercial banking business operating through a nationwide branch network||97,347||23,823||4,395||3,443||18,397|
|Overseas||Los Angeles, Phnom Penh, Kunming, Vientiane, Singapore, Mumbai, Siem Reap Sub., Yangon Rep. & Cayman||
Loan, Deposit, Remittance Trade finance, FX Service, Banking products and services
to corporate customers, government, and state agencies & financial enquiry services
and coordinating with Krungthai Group
(Unit: Million THB)
1.) In the process of closing branch: Los Angeles & Mumbai
2.) Domestic represent more than 98% of revenue, earning before tax & income tax paid