BANGKOK, June 16 (Xinhua) -- The Thai Ministry of Finance's Revenue Department said on Tuesday that it has signed agreements with 160 countries and regions to close loopholes in the upcoming E-Services tax law.
"The Revenue Department has signed a mutual assistance pact on tax administration with 160 countries and regions," said the department's Director-General Ekniti Nitithanprapas. "These countries and regions can share information of registered companies to assess whether tax has to be collected if these firms also provide a platform in Thailand."
"This move will overcome the vulnerability in E-Services tax or value added tax collections from foreign digital platforms that do not have a subsidiary company in Thailand and have service income of 1.8 million baht (57,859 U.S. dollars) and above so they pay 7 percent income tax," Ekniti said.
The Thai cabinet last week approved draft legislation amending the Thai Revenue Code to provide for the collection of VAT on foreign digital platform providers and sales of digital products such as online booking platforms, online entertainment streaming, and e-commerce platforms.
Thailand's Ministry of Finance said earlier that the newly approved value-added tax (VAT) law on foreign e-commerce platforms in Thailand, will rake in about 3 billion baht (97 million U.S. dollars) revenue into the government's coffer. Enditem
