Tuesday, November 19, 2019

Tax bosses eye Facebook currency tax 

Jun 27. 2019
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By The Nation

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The Revenue Department (RD) said that Facebook’s new Libra currency will face a 15 per cent withholding tax if the digital currency is a digital asset.

The department is awaiting the Securities and Exchange Commission’s consideration. 

Ekniti Nitithanprapas, revenue director-general, said that digital transactions will be increasing and the department has to adjust itself. 

The Libra token will be launched next year. 

Now, the department has been using the digital system to facilitate taxpayers. 

In particular, the department employs the digital system in the jurisdiction person registration, having a linkage with Department of Business Development for business operators’ online value added tax registration and allowing the private sector to develop Revenue Department’s digital system.

The problem for tax collection on online transactions in the digital world is that, by law, businesses which will be taxed must have a permanent residence in Thailand.

However, online business does not need to have a permanent residence in Thailand by being registered in any countries and will not levied a corporate income tax in Thailand. 

“Now, the OECD [Organisation for Economic Cooperation and Development] is considering the problem and must have international cooperation. If only Thailand taxes, it will not succeed,” Ekniti said. 

From the beginning of this year to May, the Revenue Department’s tax collection was Bt38 billion higher that its target, from higher tax collection efficiency with the digital system and rises in crude prices. 

Ekniti expressed confidence that the tax collection will meet the target of Bt2 trillion in this fiscal year. 

In regard to the single account scheme, about 67,000 businesses already registered for adjusting their balance sheets with a deadline on this October 1. 

Ekniti said that the policy of the Palang Pracharat Party of a 10 per cent tax reduction in every tax ladder, means the department is studying its impacts to the fiscal stance, pros and cons, estimated revenue loss and types of revenue as substitutes.

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