Taxman to tighten screws next year, ministry says
Measures to plug loopholes for tax avoidance will take effect in 2016, aimed at helping raise tax revenue by at least 10% or 200 billion baht a year.
Increasing efficiency in tax collection and cracking down on tax dodging are crucial because the country needs a hefty amount of money to fund development projects, said Finance Minister Sommai Phasee.
Closing tax loopholes is part of the Finance Ministry’s plan to replenish state coffers, finance infrastructure investment and reduce economic disparity.
The measures include encouraging small-business owners to hold only a single account and drawing those with sales revenue of more than 1.8 million baht into the value-added tax (VAT) system.
The state collects about 700 billion baht a year in VAT, one of the biggest sources of tax revenue.
The Finance Ministry plans to reintroduce a tax invoice lucky-draw campaign to encourage product and service buyers to ask for tax invoices from vendors.
“In the past, some sellers asked buyers whether they wanted tax invoices and offered a discount if they didn’t want an invoice,” Mr Sommai said. “Such practices are not right.”
Prasong Poontaneat, director-general of the Revenue Department, said first prize in the lucky-draw campaign is a car.
The department wants small and medium-sized enterprises (SMEs) to have a single account, as many have two or more at the same time to understate earnings and avoid large tax bills.
At present, SMEs with income less than 300,000 baht are tax-exempt. Income of more than 300,000 but no more than 1 million is subject to a 15% tax, and over 1 million is subject to a 20% rate.
To help local SMEs, the Finance Ministry is trialling an easy accounting system developed in Japan.
Mr Prasong said that while the current tax rates seem low, many SMEs are still loath to enter the formal tax system.
Measures to plug loopholes for tax avoidance will take effect in 2016, aimed at helping raise tax revenue by at least 10% or 200 billion baht a year.
Increasing efficiency in tax collection and cracking down on tax dodging are crucial because the country needs a hefty amount of money to fund development projects, said Finance Minister Sommai Phasee.
Closing tax loopholes is part of the Finance Ministry’s plan to replenish state coffers, finance infrastructure investment and reduce economic disparity.
The measures include encouraging small-business owners to hold only a single account and drawing those with sales revenue of more than 1.8 million baht into the value-added tax (VAT) system.
The state collects about 700 billion baht a year in VAT, one of the biggest sources of tax revenue.
The Finance Ministry plans to reintroduce a tax invoice lucky-draw campaign to encourage product and service buyers to ask for tax invoices from vendors.
“In the past, some sellers asked buyers whether they wanted tax invoices and offered a discount if they didn’t want an invoice,” Mr Sommai said. “Such practices are not right.”
Prasong Poontaneat, director-general of the Revenue Department, said first prize in the lucky-draw campaign is a car.
The department wants small and medium-sized enterprises (SMEs) to have a single account, as many have two or more at the same time to understate earnings and avoid large tax bills.
At present, SMEs with income less than 300,000 baht are tax-exempt. Income of more than 300,000 but no more than 1 million is subject to a 15% tax, and over 1 million is subject to a 20% rate.
To help local SMEs, the Finance Ministry is trialling an easy accounting system developed in Japan.
Mr Prasong said that while the current tax rates seem low, many SMEs are still loath to enter the formal tax system.
