รายงานความยั่งยืน

Tax Policy

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.


Governance & Risk Management

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.


Compliance

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.


Payment & Structure

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.


Transfer Pricing

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 by country report. The Bank’s Tax Policy has been reviewed and endorsed by a board-level committee on Corporate Governance and Sustainability.


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.


ข้อมูล 2021 2022
Overseas Thailand Thailand Overseas
Revenue 97,347 1,257 105,852 408
Profit (loss) before tax 23,823 275 38,633 200
Income tax accrued 4,395 198 6,951 88
Income tax paid 3,443 79 5,836 65

(Unit: Million THB)

Remarks

  1. The Bank is in the process of closing branch: Mumbai
  2. Domestic represent more than 99% of revenue, earning before tax, and income tax paid.
  3. Business activities of each entity in Thailand and oversea jurisdictions are as depicted below.

Jurisdiction List of entity Business activities
Thailand Krung Thai Bank Public Company Limited and its subsidiaries (the Group) Commercial banking business operating through a nationwide branch network
Overseas 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