Thailand’s Tax Collection to Surpass Targets

January 5, 2010 Taxation in Thailand

2757-Thailand-Bangkok-Government HouseThailand’s tax collections are expected to exceed Government targets by at least 10%.

The Thailand Government’s fiscal stimulus measures and tax base extension efforts will see tax collections “easily” surpass the THB1.097 trillion target set by the Revenue Department for the financial year ending September 30th, 2010. The rapid upsurge in revenue has been laid down to Thailand’s improving economic situation and extended efforts to raise the profitability of the country’s taxation system.

Following several months of growing collection figures and healthy economic indicators, Thailand’s Finance Ministry raised the country’s 2010 economic growth target to 3.5 percent, in the last days of 2009. Further, Value Added Tax (VAT), a proxy for household consumption and economic health, has grown by 8.91 percent over government’s targets, in the first two month of the fiscal year. According to Winai Wittawatkaravet, Thailand’s Revenue Director-General, other key tax collection indicators such as withholding taxes for personal income and taxes on interest earnings have also seen improvement in recent months.

Enhancements to tax system efficiency and profitability are expected to play a vital role in Thailand’s tax collection growth. Tax base expansions are estimated to net at least 324,000 extra tax payers by the end of the year. Further adding to efficiency efforts, the Revenue Department has initiated a project to link its databases with those of other state agencies in an effort to improve information cross-checking and decrease evasion.

Amongst the Government’s other plans to increase tax collections special scrutiny will be paid to businesses using accountants with histories of tax evasion, and gathering information on internet businesses through local internet providers.

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