Thailand’s revenue department ups tax amid economic slowdown

[webfact]

 

The Revenue Department faces a challenging year in meeting its tax collection targets, owing to a slowdown in economic activities. Despite this, five sectors have been identified as promising.

 

The department, led by director-general Kulaya Tantitemit, has increased its revenue collection target to 2.27 trillion baht (US$61.7 billion) for the fiscal year 2024, up from 2.02 trillion baht (US$55 billion) in 2023, a rise of approximately 3%.

 

This aligns with Thailand’s projected GDP growth of 2.7%, as estimated by the National Economic and Social Development Council, and the Fiscal Policy Office’s 2.8% growth prediction.

Kulaya attributes the challenging tax collection target to various factors, including external problems impacting the export market, increased energy prices, interest rates, and government expenditure being delayed until April. Trade conflicts and barriers could also affect tax collection.

Nonetheless, tax collection for the first five months of this fiscal year (October 2023 to February 2024) totalled 766 billion baht (US$20.8 billion), an increase of 1.6% over the same period in fiscal 2023. The department has also set a corporate income tax target for fiscal 2024 of 811 billion baht (US$22 billion), 5.7% higher than the previous year.

 

The department is focusing on sectors that demonstrate growth potential and providing tax advice similar to audit preparations. These sectors include energy-related businesses, medical and beauty businesses, retail and wholesale businesses, tourism-related sectors, and e-commerce platforms.

 

The Revenue Department is also taking measures to prevent tax avoidance by large businesses using transfer pricing. Additionally, the department is working on the Top-up Tax Act (Pillar 2: Global Anti-Base Erosion Rules) to expand the tax base and create revenue stability. This involves implementing a global minimum tax on large multinational corporations, reported Bangkok Post.

 

The department is also expanding the tax base to online businesses through the creation of the E-Business Monitoring Committee to track and propose policies. Tax authorities from over 140 countries are negotiating an agreement to compel large digital companies such as Google, Facebook, Amazon, and Apple to pay tax in countries where these companies operate, including Thailand.

 

This initiative, known as Pillar 1, is expected to conclude within this year. If an agreement is reached, taxes collected from these digital businesses are expected to increase.

 

by Alex Morgan 

Picture courtesy of Bangkok Post

 

Source: The Thaiger 2024-04-18

 

Get our Daily Newsletter - Click HERE to subscribe
 

[hotchilli]

3 hours ago, webfact said:

The Revenue Department faces a challenging year in meeting its tax collection targets, owing to a slowdown in economic activities. Despite this, five sectors have been identified as promising

Taxing the bar girls on their real income, not just the bar salary?

[Will B Good]

Need to hammer all those wealthy British expats on their big fat (worst pension in the western world) pensions.

[NorthernRyland]

They're coming for your money next. Prepare yourself accordingly.

[mfd101]

So their 'revenue collection target' is only US62B this year? [I take it this is personal income tax?] And there's a 'corporate tax target' of US22B. Making a total of some US84B.

 

Which doesn't seem much if that's the government's total revenue for 12 months. Wouldn't go far even at Thai prices and without corruption skimming off 1/3 ...

 

???

[john donson]

19 minutes ago, Will B Good said:

Need to hammer all those wealthy British expats on their big fat (worst pension in the western world) pensions.

 

are you sure about that ?  EU is worse

 

and I read, if you die, as UK citizen, nothing below 300.000 pounds is taxed for your heirs

 

in EU, they love to take 35-70% (max . between siblings)

[edwinchester]

1 hour ago, john donson said:

 

are you sure about that ?  EU is worse

 

and I read, if you die, as UK citizen, nothing below 300.000 pounds is taxed for your heirs

 

in EU, they love to take 35-70% (max . between siblings)

https://www.thisismoney.co.uk/money/pensions/article-9803095/Is-UK-state-pension-REALLY-worst-rich-rival-countries.html

 

EU is definitely not worse than the UK, most countries are ahead of the UK pension.

[Will B Good]

2 hours ago, john donson said:

 

are you sure about that ?  EU is worse

 

and I read, if you die, as UK citizen, nothing below 300.000 pounds is taxed for your heirs

 

in EU, they love to take 35-70% (max . between siblings)

A report from the House of Commons Library shows that the pension systems of Ireland, Denmark and the Netherlands are arguably good European comparators for the UK State Pension system. This is because like the UK, these countries also provide a flat-rate state pension based on the number of qualifying years a person amasses during their working life.

Ireland

Ireland pays a non-means-tested, flat-rate pension to people from the age of 66 who have made enough social insurance contributions.

The full rate is available for those with 48 or more qualifying years. As of 2021, the full pension amount is €248.30 (or £214) per week.

Netherlands

The Netherlands follows a pension system that consists of a basic state pension that is linked to the country’s minimum wage.

A single pensioner gets an amount worth up to 70% of the net minimum wage. A pensioner couple gets the equivalent to 100% of the net minimum wage (50% each).

The pension amounts are revised each January and July, alongside the minimum wage itself.

The pension system is also residence-based. Individuals accrue 2% of the full pension amount for every year they reside in the country between the age of 15 and the pension age (up to a maximum of 50 years).

Currently, the full pension amount stands at €1,218.19 per month (around £260.84 per week) for a single person. For married or cohabiting couples, it is  €832.86 per month (£178.33 per week).

[PETERTHEEATER]

Again a disconnect between the headline and the report.

 

The headline implies an increase in tax.

 

The report is that the Revenue Department is increasing its target for tax collection.

[ThaiPauly]

Only 2% of Thais pay tax......there must be many that owe it but just don't pay it

An example: 

15 years ago my wife owned a restaurant in CM.

She had a visit from the taxman.

He asked her how much she was making and she said times were tough and she was not making hardly anything after she had paid her staff.

The taxman was very sympathetic, did not ask to see the books and they settled on a figure  of 500 baht for the year.

As it goes she was hardly making any money and what she said was truthful , but she could easily have been fibbing.

 

How many don't tell the truth about thier tax affairs?

 

So now they want to target westerners pensions as we are easy targets

[BangkokReady]

4 hours ago, Will B Good said:

Need to hammer all those wealthy British expats on their big fat (worst pension in the western world) pensions.

 

The US has a state pension?

[Will B Good]

17 hours ago, BangkokReady said:

 

The US has a state pension?

https://en.wikipedia.org/wiki/Pensions_in_the_United_States

[sammieuk1]

A tax on the unexpectedly wealthy senior police officers gambling dens may double the tax take 🤔

[BangkokReady]

6 hours ago, Will B Good said:

https://en.wikipedia.org/wiki/Pensions_in_the_United_States

 

Does it say state-pension in there?

[Mike Lister]

23 hours ago, BangkokReady said:

 

The US has a state pension?

Sort of, they have Social Security which is very similar.

[Trippy]

When there's a slowdown aren't you supposed to lower taxes to create growth?     Economics 101

[BangkokReady]

4 minutes ago, Mike Lister said:

Sort of, they have Social Security which is very similar.

 

So, you get a tiny bit of money if you have nothing whatsoever and are on the verge of homelessness?

[Mike Lister]

1 minute ago, BangkokReady said:

 

So, you get a tiny bit of money if you have nothing whatsoever and are on the verge of homelessness?

Google US Social Security. It's makes pension payment's, provides health care insurance, disability payment's, payments for this, payments for that....google it.