Thailand may toughen tax rules for ICTs
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The Thai government is considering toughening tax rules for international internet and technology companies, including mobile and internet commerce companies.
The head of Thailand’s Revenue Department told that the government has set up a working committee for finding solutions for collecting tax from Google and other technology giants.
Laws and regulations that haven’t been updated in 50 years could be amended to address the digital economy, the report states. The working committee is expected to report by the end of the year.
Countries in Southeast Asia are increasingly pursuing higher taxes from large internet and technology companies, with Indonesia pursuing the company for five years of back taxes, and Australia recently getting stricter on companies with annual earnings of over A$100 million ($76.4 million).
Large multinationals have been booking their regional profits in Singapore to take advantage of the city state’s lower tax rate and incentive programs. But Singapore’s finance ministry recently stated that it does not condone the artificial shifting of profits.
Questions & Answers
Q.Which types of companies might be affected by the proposed changes to Thailand's tax rules?
Which types of companies might be affected by the proposed changes to Thailand's tax rules?
The proposed changes could affect international internet and technology companies operating in Thailand. This includes mobile and internet commerce firms, as well as technology giants like Google.
Q.Why is the Thai government looking to update its tax rules for these companies?
Why is the Thai government looking to update its tax rules for these companies?
The government is seeking to update its laws and regulations, some of which are 50 years old, to address the challenges of the digital economy. A working committee has been formed to find solutions for tax collection.
Q.How are other countries in Southeast Asia addressing the taxation of large internet and technology companies?
How are other countries in Southeast Asia addressing the taxation of large internet and technology companies?
Countries in the region are increasingly pursuing higher taxes. Indonesia has sought five years of back taxes, and Australia recently became stricter on companies with over A$100 million in annual earnings.
Q.Where have large multinational companies typically booked their regional profits?
Where have large multinational companies typically booked their regional profits?
Many large multinationals have historically booked their regional profits in Singapore. This practice allowed them to take advantage of the city-state's lower tax rate and various incentive programmes.
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