Integrity Legal

In recent weeks various sources have discussed the changes to tax policy in Thailand, specifically with reference to changes in the excise tax regime. Specifically, with regard to excise tax (also described by some as a “sin tax”) there was discussion before the new measures were implemented concerning the possibility that the new taxes would be relatively significant. Ultimately, events have transpired which has shown that the new measures have not resulted in a substantial increase in terms of taxes passed on to the consumer. The increased taxes have turned out to be rather nominal, but the methodology by which taxes are calculated has changed. Therefore, the end consumer may not see much of a change, but those further up-stream in terms of distribution are dealing with issues associated with the new calculation method.

Meanwhile, other recent measures have taken effect throughout 2017 which is changing the way revenue collection and tax enforcement is conducted. First, it appears that there will be an increase in VAT (Value Added Tax) placed upon items purchased online in Thailand. It appears Thai officials are keen to increase revenues from the digital economy. In the past, the revenue collection system of Thailand was geared to deal with tax collection in a manner more suitable to the pre-internet online economy. Where once there were a number of exemptions for online purchases now those exemptions are being phased out as revenue authorities are coming to grips with the fact that more economic transactions are occurring online.

Finally, it is worth noting that so-called e-filing of certain corporate tax documentation is now mandatory in Thailand. Paperwork such as the audited financial statement are required to be filed online. To those with experience dealing with tax matters in other jurisdictions this new requirement may seem long past due as many other jurisdictions have conducted such matters online for years (in some cases decades). However this development has only come to pass in Thailand in 2017. In the future it appears likely that many corporate tax filings will be perfected online.

In conclusion, all of the above information, when taken together, illustrates a trend which has been progressing for a few years now. Namely, an drive to increase the efficiency and improve the methodology by which taxes are assessed and collected in Thailand. It seems logical to infer that this trend will culminate in the full transformation of the Thai tax system and that said system will be thereafter much more similar to internal revenue services in countries in the more developed world. This will likely occur before the back drop of an increasingly dynamic Thai economic and it seems sensible to expect that revenue to Thai state coffers will increase thereby.

Tags: Audited Financial Statement, E-Filing, Excise Tax, Internal Revenue Service, sin tax, Thai Revenue Department, Thai Tax, Thai Tax E-Filing, Thai VAT, Thailand Excise Tax, Thailand Revenue Department, Thailand Tax, Thailand Tax Office, Thailand VAT, Value Added Tax, VAT