Automotive

KPMG in Thailand

KPMG in Thailands Automotive Practice

provides professional services to some of the largest and most successful automotive companies in the world. These companies range from original equipment and component manufacturers, to dealerships and commercial vehicle manufacturers. Most of the worlds major automakers, assemblers, and parts and component manufacturers have a presence in Thailand and many of them are now using the country as a location for R&D. Thailand is well placed geographically to supply regional markets that are opening up more and more with the expansion of the ASEAN free trade zone and the increasing number of free trade agreements. The automotive industry in Thailand contributes significantly to the local economy and the Thai government is offering support in the form of tax incentives and various other measures, increasing Thailands attractiveness for investors. The Green Revolution in Thailand, coupled with political pressures, tax incentives and changes in social values, looks set to compel manufacturers to accelerate the development of more environmentally friendly technologies. Eco-cars with alternative drive technologies are strong contenders to dominate the market in the future. Thailands Board of Investment (BOI) is supportive and provides a 90% reduction on the import duties of eco-car raw materials and parts that are not produced locally. The BOI has also expanded its automotive incentive scheme to cover technologically advanced automobiles that have innovative technologies that are new to Thailand, such as hybrid drive, brake energy regeneration and electronic stability control. Thailand continues to take big steps towards being a major hub for automotive production in Asia. KPMG can help automotive companies make sure that the potential for growth which the industry is currently witnessing in Thailand and in the region is not missed, and that the issues and challenges can be overcome.

Challenges
l Consolidation

of the automotive industry

l New market entry

strategies
l Emergence of

new market players looking to internationalize

l Cost reduction

and supply chain improvements

l Plant location,

closures and relocation

How we can help KPMG in Thailands Automotive Practice provides a range of services in support of broader industry issues. The services that we offer start from the perspective of businesses with whom we work. We look at industry challenges from multiple angles, pooling our knowledge to develop holistic services that fit the complexities of an ever-changing business environment. Here are some of the ways we can help:
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Audit and review of financial statements, reporting packages and BOI reports Assistance with financing packages and financial modeling together with tax advice for the financing arrangements Regulatory advice and registration

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Tax registration Tax planning for income tax, VAT and SBT Outsourcing tax functions, including income taxes, VAT, customs and duties Development and implementation of commercially viable transfer pricing policies which comply with local revenue requirements and helping with transfer pricing exposure Assistance in preparing tax provisions Domestic and international tax planning for executives and staff ROH planning R&D tax incentives Financial and commercial due diligence Valuations and independent reports, including purchase price allocation Advice on Thai and International Financial Reporting Standards (IFRS), including IFRS conversion

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Outsourcing and co-sourcing internal audit services Assessing and re-designing end-to-end business processes focusing on cost reduction, increased efficiency and reliability IT systems process and reviews Corporate restructuring services Sarbanes-Oxley Advisory Services (SOAS) Enterprise Risk Management (ERM) Fraud Investigation, Fraud Risk Management and Forensic Technology Services

KPMGs automotive practice in Thailand is supported by an international group of professionals who work together to deliver the right services to your organization at the right time.

With deep industry knowledge and experience, KPMGs professionals work together to deliver clear and informed options based on insights and advice that can translate into bottom-line value for leading automotive companies.

kpmg.co.th

KPMG in Thailand provides a full range of audit, tax and advisory services. Today, with more than 1,000 Thai and expatriate professionals, KPMG is one of the largest professional service firms in Thailand with a balanced mix of international and local clients. Our local experience in Thailand is enhanced through our knowledge sharing within a global network of firms. Globally, KPMG has more than 137 ,000 professionals in 146 countries.

Contact us 48th Floor, Empire Tower 195 South Sathorn Road Bangkok 10120 Thailand Tel +66 2677 2000 auto@kpmg.co.th

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

2010 KPMG Phoomchai Holdings Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Thailand.