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ThaiBev’s region tax reporting
Tax Reporting FY2017 from separate financial statements by entity including intercompany transactions but excluding dividend income
Regions Total revenue (THB) Earning before tax (THB) Tax Expense (THB)
Thailand 501,544,274,057.88 24,787,986,084.30 5,065,931,806.09
Asian Pacific 18,784,926,523.49 14,599,061,485.10* 4,625.16
Europe 2,789,226,581.48 292,178,935.53 65,697,384.66
USA 41,549,747.07 (52,569,890.76) -
Total 523,159,976,909.92 39,626,656,614.17 5,131,633,815.91
* Earning before tax in Asian Pacific includes ‘effect of change of interest in other investment of associate’ of 8,496 million THB. This is not taxable.


Tax Reporting FY2016 from separate financial statements by entity including intercompany transactions but excluding dividend income
Regions Total revenue (THB) Earning before tax (THB) Tax Expense (THB)
Thailand 365,094,340,480.43 19,867,030,398.05 3,590,838,670.23
Asian Pacific 9,272,831,461.37 2,648,150,536.86 (20,360.09)
Europe 2,411,948,744.19  227,648,959.94 51,997,331.06
USA 34,293,071.49 47,559,373.02 -
Total 376,813,413,757.48 22,790,389,267.87 3,642,815,641.20
Note: To Asian Pacific region- Hong Kong adopts a territorial source principle of taxation. Only profits which have a source in Hong Kong are taxable there. Profits sourced elsewhere are not subject to Hong Kong Profits Tax.


ThaiBev’s effective tax rate explanations
Consolidated Financial Reporting FY 2016 FY 2017
Earning before tax (THB) 22,679,112,018.02 39,812,397,460.16
Reported Taxes (THB) 3,642,815,641.20 5,131,633,815.91
Reported Tax Rate (in %) 16.1% 12.9%
Cash income tax paid (THB) 4,314,119,762.56 3,634,832,444.48
Cash Tax Rate (in %) 19.0% 9.1%
The cash tax rate in FY2017 decreased from 19% in the prior year to 9.1%. – Generally, the cash tax paid in any particular year may differ from the tax accrued on profits for the year. 50% of income tax charged on the income derived in FY2017 will become due in 2018.

A large majority of the Group’s income is derived from Thailand which should be subject to the corporate income tax rate at 20%. However, the cash tax rate in FY2017 is 9.1% which is lower than the statutory rate. In 2016, this accounts for 3,447 million THB difference, and in 2017 6,051 million THB difference.

From the statement of income, the reconciliations of the effective tax rate provides a number of reasons as follows:

  • Effect of different tax rates in foreign jurisdictions mainly represents tax effect from income derived by IBHL a subsidiary incorporated in Hong Kong which should be subject to the lower tax rate and from income derived by Thai Beverage PLC under the International Headquarter (IHQ) tax regime since 2016. In 2016, this accounts for 930 million THB difference, and in 2017 2,421 million THB difference.

  • Income not subject to tax Thai Beverage PLC, received an approval from the Thailand Revenue Department to apply the International Headquarter (IHQ) tax regime since 2016. Under this regime certain types of income received by the IHQ will be entitled to a tax exemption or tax reduction for 15 accounting periods from the date of the approval by the Director General of the Thailand Revenue Department.

    Additionally, “income not subject to tax” arises from tax legislation in Thailand that provides a participation exemption rule for the parent companies on the dividend received from its subsidiaries.

    ThaiBev’s subsidiary, has been granted tax privileges by the Board of Investment relating to the projects of electricity generation from biogas at distilleries. The privileges granted includes the corporate income tax exemption for the income derived from the promoted businesses or activities for a period of eight years from the date on which the income is first derived from the promoted businesses.

  • Expenses not deductible for tax purposes In FY2017, the reconciliation has shown a negative figure meaning that a number of tax incentives have been utilised by ThaiBev. as follows:

    • Thai Beverage Training Co., Ltd., a subsidiary, has been set up to be an in-house training center for ThaiBev employees based on the Thai government policy to promote the development of employee skills. The training fee can be a tax deductible for 200%.

    • ThaiBev has utilized the tax benefits under the new capital expenditure scheme that Thai Revenue Department announced during 2016-2017 by which the acquisition cost for the capital expenditure can be an additional tax deductible for 100% and 50%.

    • ThaiBev contributed the public donations to educational and sport institutions which can be a tax deductible for 200%.




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