Tag Archive: tax

  1. Thailand became a party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC)

    Leave a Comment

    Thailand became a party to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC), making Thailand the 137th state to become a party to the agreement. The MAC was established jointly by the Organization for Economic Co-operation and Development (“OECD”) and the Council of Europe in 1988 to promote tax transparency, fairness in tax administration, and to prevent evasion and avoidance of transnational taxes, which is in accordance with the international cooperation framework that Thailand is a party to.

    Dr. Ekniti Nitithanpraphas, Director-General of the Revenue Department, stated that the MAC is an essential tool in helping tax authorities around the world cooperate in accordance with the framework of the OECD, the G20 group regarding Inclusive Framework on Base Erosion and Profit Shifting, which aims to prevent the migration of tax bases of multinational corporations, and the Global Forum on Transparency and Exchange of Information for Tax Purposes, which sets standards for the exchange of tax information between countries to allow the utilization of information that is exchanged under the MAC agreement by tax authorities. Thailand’s participation in the MAC agreement expands its network of parties in the exchange of tax information, from the previous 60 parties under the Double Tax Agreement (DTA) to more than 130 countries under the MAC, demonstrating Thailand’s commitment to international cooperation regarding tax matters.

    The Director-General of the Revenue Department also added that the Revenue Department is in the process of bringing the signed MAC agreement to Parliament for consideration and ratification. Exchanging information under the MAC will help the Revenue Department obtain data to analyze the tax behavior and risk of multinational entrepreneurs and help promote tax fairness, such as through e-Service laws, which will lead to the increased competitiveness of domestic entrepreneurs and an expanded tax base, which will undoubtedly be beneficial for the country.

    If you have any questions or require additional information, feel free to contact us at [email protected] or call us at +66 (0)2 117 9131-2.

  2. New tax amnesty regulation in Thailand

    Comments Off on New tax amnesty regulation in Thailand

    A newly enacted law, The Act for Exemption on Penalties, Surcharges, and Criminal Offenses and Support of Operations Under the Revenue Code BE 2562 (the “Tax Amnesty 2019”) will provide a good opportunity for a small and medium-sized enterprises (SMEs) that are subject to corporate income tax (CIT), provided that they are a company or juristic partnership and they meet the following requirements:

    1. Subject to corporate tax on net profits with taxable income from its business for the last accounting period (latest 12-month) ending on or before 30 September 2018 of not exceeding THB 500 million and
    2. Having submitted a PND 50 form for the last accounting period (latest 12-month) ending on or before 30 September 2018 within 25 March 2019 and
    3. Never having committed a tax invoice forgery or using false tax invoice and Revenue Department has brought a criminal case to the police before the Amnesty becomes enforceable.

     

    For anyone who is interested in applying for the Tax Amnesty program, the application must be registered with the RD (Revenue Department) by:

    1. Submitting the related documents according to the rules, procedures and conditions prescribed by the Director General of RD to the official website of the RD (www.rd.go.th) during the period of 1 April to 30 June 2019 and
    2. filing a Tax returns and paying unpaid Corporate Tax or additional Corporate Tax to the RD by 30 June 2019 for the following periods:
    • CIT: Accounting period of 1 January 2016 to 31 December 2017.
    • VAT/SBT: Accounting period of 1 January 2559 to 28 February 2019
    • Stamp Duty Tax: Any transaction within 1 January 2016 to 25 March 2019 and pay the unpaid tax in full amount within 30 June 2019

    The benefits that are offered in this program are significant:

    Qualified taxpayers will get an exemption from penalties, surcharges for the taxes (CIT, VAT, SBT, and SD) under this Act and shall be exempted from criminal liability under the Revenue Code. After that tax-payers should continue to submit tax returns via e-filing online on the period from 1 July 2019-30 June 2020. Then, the company’s accounts or financial statements shall be deemed accurate.

    The law came into force on 26 March 2019.

    if you have any question regarding the Tax amnesty regulation in Thailand, Please feel fee to contact us at [email protected] or call us at +66 (0)2 117 9131-2