The Revenue Department (RD) introduced its first set of transfer pricing guidelines on May 16, 2002, in the form of Departmental Instruction No. Paw 113/2545 (the Instruction). The Instruction provides the tax officers with guidelines for reviewing the transfer prices when conducting tax examinations and outlines the approach that taxpayers should follow when establishing transfer prices. The Instruction confirms the existing position under the Thai Revenue Code that the RD has power to adjust the taxpayer's revenue or expenses for corporate tax purposes if the compensation received is less than market price or if the expenses paid are higher than market price without a justifiable reason.