Thursday, September 24, 2020

Revenue teams up with 160 nations to identify firms that should be taxed under E-Services law

Jun 15. 2020
Facebook Twitter

By The Nation

The Revenue Department has signed an agreement with 160 countries to close loopholes in the upcoming E-Services tax law.

Director-General Ekniti Nitithanprapas said his department signed a mutual assistance pact on tax administration with 160 countries including Japan, France, Germany and Australia so that the revenue departments of each country can share information of registered companies to assess whether tax has to be collected if these firms provide a platform in Thailand.

“This move will overcome the vulnerability in E-Services tax or value added tax collections from foreign digital platforms that do not have a subsidiary company in Thailand and have service income of Bt1.8 million and above so they pay 7 per cent income tax,” Ekniti said.

The act has been submitted to the House of Representatives for approval.

In addition, the Revenue Department is preparing to issue an announcement on reduction of e-tax withholding rates, from the original 3 per cent to 2 per cent, between October 31 and December 31.

With Commercial banks handling payments, firms or individuals will no longer have to keep withholding certificates in paper form as the bank will send this information directly to the Revenue Department and the information will be recorded electronically. This will speed up the process of calculating taxes and tax returns.

Tags:
Facebook Twitter
More in Business
Editor’s Picks
wmg-logo
Top News
wmg-logo