Thai Authorities Chase Luxury Car Scheme

May 20, 2017 Taxation in Thailand

Luxury Car ThailandBANGKOK – Thai authorities have are launching investigations into thousands of under-taxed luxury cars.

The tax authorities of Thailand have revealed that they are launching a new investigation into the purchases and import of approximately 10 000 high-end luxury cars, following a preliminary investigation which demonstrated that local automobile dealers are evading their tax obligations when importing cars.

Currently, any car imported into Thailand with a price exceeding THB 8 million are taxed as luxury items, with the rate set in accordance with the price.

Often the tax can be several times the value of the car itself.

In an effort to circumvent the tax, or to at least lower the amount paid, importers have underdeclared the value of the cars by as much as 40 percent.

Following the discovery of the tax avoidance scheme, and evidence of which importers are prone to attempt the evasion, the tax authorities have compiled a list of 10 000 super cars which they will investigate to discover whether the appropriate amount of tax was paid.

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