Thailand eyes taxes for foreign OTT content providers
Thai Sang Thai MP Takorn Tantasith said he backs a proposed new law that would impose taxes on over-the-top (OTT) service operators.
He suggested that the tax also apply to overseas-based OTT service operators that earn from offering their services in Thailand.
Over-the-top (OTT) media service refers to any online content provider that offers streaming media as a standalone product.
At a House of Representatives meeting on Saturday, Takorn said millions of Thais use their smartphones to shop and buy online services.
He explained that these mobile applications rely on the OTT system for money transfers. These transactions, he said, see the money first transferred outside Thailand and then transferred back in, which should be subject to a service fee of 15 to 20%.
“Thailand has to pay this amount to foreign service providers. The country collects value-added tax for the revenue earned through YouTube and Facebook, but the tax burden is shouldered by the Thai taxpayer. Foreign service providers do not pay any tax for OTT service,” said Takorn, who is also Thai Sang Thai Party’s secretary-general.
He was speaking at a House debate on an emergency decree on information exchange regarding the implementation of international agreements over tax and tariffs proposed by the Cabinet.
Takorn, formerly secretary-general of the National Broadcasting and Telecommunications Commission (NBTC), suggested that the law should also apply to foreign OTT operators who earn from their services available in Thailand.
“This way, Thailand will not lose its tax revenue to other countries,” he said.
Caretaker Finance Minister Arkhom Termpittayapaisith later instructed the Revenue Department to explain the matter to the House of Representatives in writing.
The House meeting voted 427:1, with five abstentions, to pass the proposed legislation in the first reading.
