Thailand to Tax Digital Businesses

June 26, 2018 Taxation in Thailand

digital taxes in thailandBANGKOK – Tax authorities in Thailand are modernizing their systems to try and tax online businesses.

The director-general of the Revenue Department of Thailand, Ekniti Nitithanprapas, has announced that the government is now looking at establishing new regulations which would require foreign online business to report any transactions that they have in Thailand.

Thailand, like many other nations around the world, is growing increasingly concerned with the advent of large digital businesses which make profits from Thai taxpayers, but do not pay any taxes in return.

In an effort to clamp down on these non-paying businesses, Thai authorities have already introduced new legislation which requires payment of VAT by businesses making more than TBH 1.8 million per year.

However, the tax authorities currently do not have any mandate to demand information about sales from online businesses.

However, the newly considered rules will allow tax authorities to demand sales records from businesses which do not have a physical presence in the country.

The move to capture online businesses in the tax net is the not the only move Thai authorities are making to modernize, as they have also announced that they will be using data analytics and artificial intelligence to help them catch out tax cheats and boost tax collections.