BANGKOK (The Nation/ANN): E-services tax, or value-added tax, is likely to be levied next year on foreign digital platforms that do not have a subsidiary company in Thailand, and it is expected to generate Bt3 billion per year revenue to the state, the top Revenue Department official said.
Ekniti Nitithanprapas, the department's director-general, said the House of Representatives had approved the draft bill, adding that it was under consideration by the Senate committee.
"Once the e-services tax draft bill is approved by the Senate committee and the Constitutional Court, and is announced in the Royal Gazette, the act will be effective within 180 days, or in 2021," he said.
He explained that the e-services tax aimed to create a level playing field between foreign and domestic online business entrepreneurs, as foreign entrepreneurs who operate businesses in Thailand are required to register for value added tax.
The act will not be a burden on customers, he assured.
"However, the department expected that e-services tax collection will generate Bt3 billion revenue per year to the state," he said.
"This will enable the Revenue Department to achieve the revenue collection target in fiscal year 2021."
He added that in fiscal year 2020, the Revenue Department would not be able to achieve its revenue collection target of Bt2.116 trillion.
"Revenue collection in the first nine months of this year is expected to be Bt1.26 trillion," he added. - The Nation/Asia News Network
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