BANGKOK, Thailand – The Thai Revenue Department is advancing its efforts to enhance tax collection from online platforms and large multinational businesses.
Dr. Kulaya Tantitemit, Director-General of the Revenue Department, announced on September 6 that in the first 11 months of the fiscal year 2024, the department collected 1.963 trillion baht in taxes, surpassing the target by 8.482 billion baht, or 0.4%. This amount also exceeded the previous year’s collection by 47.911 billion baht, or over 2.5%, reflecting an improving economy. The increase is attributed to the “Easy E-Receipt” measure, which encourages electronic invoicing through retail stores, and tax incentives to boost domestic tourism. The department anticipates surpassing its annual target, aligning with the National Economic and Social Development Council’s projection of a GDP growth rate of just 2.5% for 2024, up from the 1.9% growth recorded in the first half of the year.
The Revenue Department is moving forward with legislative changes to require all online platforms to remit VAT. This measure is expected to be implemented by March 2025. During this period, all online purchases will be subject to VAT, with customs authorities collecting and remitting the tax to the Revenue Department.
Additionally, the department is promoting the Thai ESG fund, which offers a tax deduction of 300,000 baht per person. Typically, the fund starts its marketing campaigns and attracts investors towards the end of the year to encourage long-term savings.
The department is also preparing to propose new legislation to the incoming government, aiming to implement the Pillar 2 framework for global minimum tax rates. This will require large multinational corporations to pay a minimum corporate income tax rate of 15%. Furthermore, an amendment to Section 41 of the Revenue Code will be proposed to mandate that both Thai and foreign residents, who stay in Thailand for over 180 days, must report and pay taxes on income earned abroad. This will be integrated with information from the OECD countries, ensuring that income brought into Thailand or held abroad is taxed by the Thai Revenue Department. (TNA)
