As part of the National e-Payment Master Plan, the Revenue Department (RD) aims to develop and implement a new electronic tax system in order to enhance its efficiencies on tax assessment and tax filings. Recently, the RD has proposed a new measure to use electronic systems in its procedures and to enable it to receive helpful information that may expedite its tax collection and other processes. This new measure is codified in the form of a draft amendment to the Revenue Code (Draft). The Draft is currently available on the RD's website and is open for a public hearing through the website (in Thai) until 15 April 2018.
To review the public hearing, please click this link.
Summary of the Draft Amendment to the Revenue Code
1. Withholding tax filing
The Draft opens options for the RD to enact new rules for withholding tax filings and allows withholding tax filing through electronic means. However, we note that the deadline for e-filing will not be more than the normal withholding tax filing deadline.
2. Special transaction (a translated term)
In addition, the Draft proposes a new type of transaction subject to reporting obligations. Under the following requirements, the RD will consider whether a transaction is classified as a special transaction that will be subject to the new reporting obligations under the Draft.
- There are at least 3,000 deposit transactions or receipts of money transfer in all bank accounts combined; or
- There are at least 200 deposit transactions or receipts of money transfer in all bank accounts combined and the sum of deposit transactions or receipts is THB 2 million or more.
3. Disclosure of special transaction information
The Draft requires the following persons and entities to report the information relating to a special transaction that they possess to the Revenue Department by March of each year:
- financial institutions under the law concerning financial institution business act
- the government's financial institutions established under a specific law
- a person who provides electronic money service under the law concerning electronic payment system
The details of the information and how to report the information shall be further specified in a ministerial regulation. The reported information will be kept with the Director-General for not exceeding ten years from the date of receipt.
The Director-General may order the reporting persons to report the information within a specified period. Failure to do so will lead to an administrative fine of not exceeding THB 100,000 and a fine of not exceeding THB 10,000 per day until the failure has been remedied.
5. Effective date
If the Draft becomes effective, it will require that the reporting persons must report information of a person who would be involved in a special transaction to the RD by 31 March 2020.