Online businesses to be pulled into tax system next year

[webfact]

Online businesses to be pulled into tax system next year

By The Nation

 

 

Online merchants, YouTubers and even social-media influencers may have to start paying income tax after the finance minister announced his ministry targets at least Bt2 trillion in tax earnings from this group.

 

The Revenue Department plans to collect taxes from at least 500,000 online traders.

 

The Finance Ministry is also getting ready to propose amendments to the revenue code that cover online sales from overseas in the Senate next week once it collects comments from the House committee.

 

Ekniti Nitithanprapas, director-general of the Revenue Department, said on Monday that the law will require foreign businesses that use online platforms to provide commercial services in Thailand to register for the payment of value-added tax when their annual income exceeds Bt1.8 million. He said this will put local businesses at a fair footing and will also boost state earnings by at least Bt5 billion.

 

The Revenue Department will also expand the taxpayers’ base and cover more people, especially those who avoid filing tax returns. Thailand’s taxpayers’ base stands at 9.55 million people, but only 3 million actually pay taxes.

 

Many people have taken advantage of the Covid-19 crisis by earning extra income from selling products online, developing a YouTube channel or becoming social-media influences, and the ministry is planning to pull at least 500,000 of these people into the tax system next year.

 

Finance Minister Arkom Termpitthayaphaisit said recently that the Revenue Department should achieve its target of Bt2 trillion for the 2021 fiscal year despite the economic slowdown, as it has developed a new digital system which makes tax collection more efficient.

 

Source: https://www.nationthailand.com/business/30398023

 

-- © Copyright The Nation Thailand 2020-11-16

 

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[worgeordie]

Only thing that's certain in life. taxes and death.....then ,if you are a huge

corporation you don't need to worry about tax so much.

regards worgeordie

[GeorgeCross]

17 minutes ago, worgeordie said:

Only thing that's certain in life. taxes and death.....then ,if you are a huge

corporation you don't need to worry about tax so much.

regards worgeordie

 

or can afford a competent accountant

 

[canopus1969]

Good news - about time

[DLock]

Catch me if you can...

 

Register online businesses in Hong Kong or Singapore and have clients order products anchored in those countries, never touching a product in Thailand and do all the online advertising you want in Thailand.

 

They are still struggling with local tax collection...so thinking that can collect tax on a global economy that is 5-steps ahead is laughable.

 

Suckers.

[impulse]

Maybe this is normal political rhetoric, or maybe this is the start of connecting the dots where the tax folks get access to other data in various databases (including Facebook, YouTube, etc.)  Not just income taxes, but VAT, import duties.

 

I wonder how many digital nomads are going to be caught out...  Because once they know you're making money, it's not hard to figure out if you have a WP and proper visa.

 

[Srikcir]

17 hours ago, worgeordie said:

Only thing that's certain in life. taxes and death.....then ,if you are a huge

corporation you don't need to worry about tax so much.

regards worgeordie

I don't think Chinese-owned Lazada will be concerned.

 

[Venom]

16 hours ago, canopus1969 said:

Good news - about time

Yes, someone has to pay back all those loans made to cope with Covid-19 impact! ????????

[hotchilli]

19 hours ago, webfact said:

as it has developed a new digital system which makes tax collection more efficient.

Another track & trace system... my neighbour sells items online from home, hasn't worked as such for years.

Never paid tax either, he openly admits to that, and says how are they going to trace me?

[bkk6060]

I guess digital nomads will be on the list?

[scoupeo]

17 hours ago, DLock said:

Catch me if you can...

 

Register online businesses in Hong Kong or Singapore and have clients order products anchored in those countries, never touching a product in Thailand and do all the online advertising you want in Thailand.

 

They are still struggling with local tax collection...so thinking that can collect tax on a global economy that is 5-steps ahead is laughable.

 

Suckers.

 

Do you know if Thai can also register a company at Hong Kong when they sell on marketplaces as lazada or shopee ?

Because these online platforms send your sales figures to tax office...

 

 

[ChaiyaTH]

That most likely kills most local online shops as margins are almost nothing already due to China importing it via trucks without any tax as well shipping from abroad.

[ChaiyaTH]

57 minutes ago, scoupeo said:

 

Do you know if Thai can also register a company at Hong Kong when they sell on marketplaces as lazada or shopee ?

Because these online platforms send your sales figures to tax office...

 

 

Anyone can in theory but to sell cross border on lazada you need to have a local address and business and bank everywhere unless you are Chinese. 

 

The Chinese have monopoly. So thais can’t sell directly to Malaysia but Chinese can. 

[robblok]

22 hours ago, GeorgeCross said:

 

or can afford a competent accountant

 

Even a competent accountant can't make a profit zero, besides the shareholders would not like a 0 profit.

 

I am an accountant / tax advisor.

[robblok]

Good thing to let people pay taxes if they make money. Not sure why online businesses should be excluded. Not sure why an influencer would not have to pay tax over money made by influencing. 

 

In my country you will have to pay tax over it as its just a business.

[yellowboat]

6 hours ago, bkk6060 said:

I guess digital nomads will be on the list?

No, Unless they have a business registered in Thailand.  Thailand is not really a good place to set up a business.   Singapore and Hong Kong allow multi currency accounts and better financial services.   Thailand offers a great social life, cheap food and housing.  

[hotchilli]

19 hours ago, bkk6060 said:

I guess digital nomads will be on the list?

Thousands of Youtuber noobies starting to paanic.