Tax News No. 259 July 2018

Index of legal movement in relation to business

Topix

Policy on the Use of Digital for Efficiency Enhancement in Tax Imposition and Public Service of Revenue Department

On 1 June 2018, the Director-General of Revenue Department held a meeting with its government officers and officials to inform of its policy as follows:

1.     Policy on the use of digital technology for all operating procedures of Revenue Department, which is called Digital Transformation. The purpose was to enhance efficiency of management and tax imposition so that Revenue Department shall be Digital RD within 2020. There shall be alteration of filing tax return by making use of Digital or electronic systems, such as e-filing, e-Tax Invoice, and e-Receipt. In addition, this change shall make operation more quickly and efficiently, and also upgrade the capacity competition in Thailand, especially in the matter of Ease of Doing Business.
2.    Policy on the use of Data Analytics for management and tax imposition in all aspects. For example, there shall be forecasting revenue, analyzing and following up the result of tax imposition, making risk management, and conducting tax audit, such as Risk Base Audit system which is to apply the system of taxpayer selection for supervision and auditing so that this system shall help reduce tax audit period.
   

   New Director-General of Revenue Department

On 16 May 2018, Mr. Ekniti Nitithanprapas was formally appointed as Director-General of Revenue Department. Before being elected to this position, Mr. Ekniti Nitithanprapas used to be in the position of the Director of State Enterprise Policy Office and he used to be in several positions in Fiscal Policy Office of Ministry of Finance. In addition, he also used to be the Senior Advisor to Executive Director at the World Bank in Washington D.C. At present, he has been in other positions, such as the president of Thai Airways International Public Company Limited, the director of TSFC Securities Public Company Limited. Mr. Ekniti Nitithanprapas graduated from Bachelor’s Degree on Faculty of Economics in Thailand and graduated from Master’s and Doctorate Degrees on Faculty of Economics in the United States.

    The Director-General has taken and pursued policy in the following matters to Revenue Department:

1.     Setting a target to have Revenue Department make tax imposition in the budget in 2019 for 2 trillion Baht.
2.     Applying digital technology to working operation of all the process of Revenue Department, which is called “Digital Transformation” so as to enhance efficiency of service on tax imposition and to pave the way for “Digital RD”.
3.     Within 2020, there shall be filing a tax return through e-Tax Invoice and e-Receipt systems and using issuance of electronic tax invoices and receipts.
4.     In the case of e-Commerce, Revenue Department shall impose online taxes on a foreign business person carrying on business in Thailand and on a foreigner earning an income in Thailand via online business so as to be fair and impartial tax imposition.
5.     As for e-Business, Revenue Department shall impost tax on a business person making electronic transactions and providing service in foreign countries, such as Facebook, Google.
6.     There shall be amendment on continuing value added tax rate for 7 percent because there is just economic recovery in Thailand.

Interested tax news

Decision of the Appeal Court for Specialized Cases No. 143-144/2560

Whether or not the labor court can hear “Application LINE” as testimony for the decision of employment termination.

Ministerial Regulation No.338 B.E. 2561 (2018)Issued under Revenue Code On Revenue Exemption

Notification of the Director-General of the Revenue Department Governing Income Tax (No.319)

Notification of the Director-General of the Revenue Department Governing Income Tax (No.320)

Notification of the Director-General of the Revenue Department Governing Income Tax (No.321)

Notification of the Director-General of the Revenue Department Governing Income Tax (No.322)

Notification of the Director-General of the Revenue Department Governing Income Tax (No.323)

Ruling No.Gorkhor 0702/2915    Date    11 April 2018

Corporate income tax in the case of dividend the Company received as a result of amalgamation

Ruling No.Gorkhor 0702/3205    Date    24 April 2018

Stamp duty in the case of appointing the company to the receipt of VISA application and fee collection

Ruling of Foreign Business Administration Division on May 2018 Subject no. 3

A foreign company carrying on business in accordance with the agreement on sale and purchase price adjustment of the steel, thereby purchasing the steel under the price determined jointly by an automobile manufacturer and a steel manufacturer as well as returning money or paying additional money for the difference (between the estimated price and the actual price)

Ruling of Foreign Business Administration Division on January 2018 Subject no. 4

A foreign company incorporating in a foreign country being hired by an employer in Thailand to work according to an entire construction of a petroleum factory contract and under joint venture. The foreign company was responsible for procurement of machines to be installed in the construction site of the factory, and dispatching experts to control and advise on machine installation.