Revenue tightens code on e-commerce transactions
The Revenue Department has revised the Revenue Code on tax collection from e-commerce transactions of businesses not based in Thailand, bringing fairness to the process, said director-general of the Revenue Department Ekniti Nitithanprapas.
The Council of State is considering the measures and will present the new act to the House of Representatives.
The department expected the measures to become effective in September 2020, boosting tax collection of e-business to a total of Bt4 billion in fiscal year 2021.
Moreover, it will allow the department to exchange information with counterparts in other countries to help prevent international companies from dodging tax payments.
With regard to taxation on online vendors, Ekniti said 100,000 online vendors presented their revenues in fiscal year 2019 with the department collecting Bt1 billion on personal incomes and vendors' revenues.
In the fiscal year 2020, 170,000 are expected to join the taxation system and tax of online vendor revenues is expected to reach Bt1 billion again.
The department reportedly will use AI to check information submitted by financial institutions under an e-payment law ordering financial institutions to hand in reports of individual transactions. It will help verify the number of online vendors not in the taxation system.
