2 Things that We Should Know About Tax System in Digital Era

“In this world nothing can be said to be certain, except death and taxes”, a famous quote by Benjamin Franklin reminds everyone that tax payment is one of the duties of all citizens and in an era that information changes its form from analogue to digital, the taxation has also developed. Mr. Rachit Chairat, CEO of CNR & Accrevo has summarised interesting points about digital taxation as following.

Projects Under National E-Payment Strategy

People’s spending behavior has changed into cashless. People spend via banking applications, scanning QR code on smartphones, or make payment through E-Wallet. As for the government, they have announced 5 projects under National E-Payment strategy, namely,

1)      Any ID payment system or “PromptPay”

2)      Extension of card usage

3)      Digital taxation and transaction

4)      Governmental e-Payment

5)      Educating and encouraging of digital transaction

They aim to increase the efficiency of payment infrastructure development, encourage accessibility of financial inclusion, register low-income individuals and integrate e-Social Welfare, integrate an e-Tax system to decrease cost for private business as well as promote e-Payment or Cashless Society in all sectors.

The Revenue Department has adjusted the taxation system, turning it fully digital, from engaging taxpayers, transforming services, empowering employees, and optimizing operations. Taxation systems and electronic transaction documents that are the most relevant to taxpayers are E-Tax Invoice & Receipt, E-WHT, E-Filing, and E-Donation.

E-Payment Law

E-Payment law established since 2019 stated that banks or payment agents have to send personal information of all accounts with the following conditions to the Revenue Department:

1.      Receive or deposit more than 400 times with total amount more than 2 million baht a year

2.      Receive or deposit more than 3000 times a year

With both internal and external information, the Revenue Department will process and analyze from 151 taxpayer criteria and come out with taxpayer information that will be further examined for taxation.

Citation: Seminar on Tips to Manage Taxes and Plan Personal Tax at SCB Business Centre (Siam Square), 4 February 2020.