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Article: Bangkok Post, Thailand, Guest Column.
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- March 2, 2004
CopyrightCOPYRIGHT 2004 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Bangkok Post, Thailand Knight Ridder/Tribune Business News
Mar. 2--Typically, Thai subsidiaries of multinational companies are financed through a combination of equity and debt. That debt may, in many cases, be sourced from a related foreign company. It is also not uncommon for Thai companies with excess funds to make loans to group companies within or outside Thailand to finance their working capital needs.
The Revenue Department's transfer pricing guidelines require that the interest rate on a loan between related parties be comparable to the going market rate unless they can provide some justification that is acceptable to the tax authorities. ...