In recognition of our responsibilities as a Domestic Systemically Important Bank (D-SIB), Krungsri (Bank of Ayudhya Public Company Limited, subsidiaries, and joint ventures) including officers and employees places considerable emphasis on tax activities and responsibilities in compliance with related domestic tax law, regulations, and applicable international conventions. Approved by the Board of Directors, the Framework of Policy for Group Tax Compliance is stipulated in alignment with corporate governance principles, a reflection of values and best practices focusing on integrity and transparency. Details are as follows:
Krungsri adheres to and complies with all applicable international conventions, domestic tax laws, as well as disclosures of financial and tax information to regulating agencies or organization.
Transactions between Krungsri and related parties or persons, connected by capital, management, and control, are conducted under the arm’s length principle when considering service fees and interest, so that tax payments will be carried out in compliance with tax laws and under market mechanisms.
Krungsri does not use tax processes or structures that are mainly or solely intended for tax saving, elimination, or evasion through complex tax planning, forms, or structures which do not aim for lawful business objectives or economic perspectives, and that are intended for tax results inconsistent with the spirit of tax laws. Krungsri pays tax of all foreign branches in compliance with local tax regulations and laws in the countries where the Bank operates. Revenues earned and expenses incurred both domestically and internationally are completely included in corporate income tax calculations in compliance with Thailand’s regulatory requirements.
Krungsri utilizes available tax incentives legally within the context of appropriate business plans and in consistent with the spirit and letter of related tax laws, which include tax saving measures for specific periods of time, the right for certain income tax exemptions, the right for certain tax deductible expenses, or other tax incentives under tax policies of both domestic and international business units applicable for eligible businesses under applicable tax criteria.
- Relationship with Tax Authorities
Pursuant to relationships with tax authorities, Krungsri shall proceed with cooperation, transparency, trust, and maintaining relationships with them. The Bank shall also respect the right of local governments in stipulating their own tax policies, structures, rates and collection mechanisms in each country in pursuit of professional and efficient relationships.
- Code of Conduct of Officers and Employees
Krungsri’s officers and employees are required to strictly comply with ‘the Framework of Policy for Group Tax Compliance’, so that they can adapt, prepare and perform any relevant tax activities in compliance with applicable laws and regulations for efficient tax payments, while mitigating tax risks that could lead to a breach of regulatory requirements which could consequently incur a loss to Krungsri.