by MBMG Group
The Thai Cabinet has approved new tax incentives for companies which register with the One Book accounting system.
Under a Royal Act made at the end of 2015, firms which sign up will be exempt from the following tax audits on transactions made before January 1, 2016:
• Corporate income tax
• Special Business Tax
• Stamp Duty
To qualify for these audit exemptions, the company must have had an income of 500 million baht or less in the last completed accounting period ended on or before December 31, 2015. Registration with the Revenue Department is open between January 15 and March 15, 2016 at www.rd.go.th.
The Revenue Department has also issued Royal Degree no.595 of December 31, 2015, which states that small- and medium-sized enterprises (SMEs) which register for One Book will qualify to pay income tax at a new, lower rate. An SME is defined as a company with a registered and paid-up share capital not over 5 million baht and income from sales and services of 30 million baht or less in the previous accounting years.
The new tax rate for SMEs is calculated as follows:
These exemptions do not apply to all current tax audits, companies avoiding tax, companies who have issued or used false tax invoices or currently involved in tax court proceedings. Also, firms which register on time but do not pay the correct tax in the future will be subject to investigation into back taxes.
It is also important to note that if a tax payer requests a refund during the year that it is exempted from an audit, the Revenue Department maintains the right to audit the specific month or year for which the refund is being claimed.
Furthermore, it is possible that, in the near future, the Revenue Department will oblige all tax-payers to use the e-payment system, which will be linked between banks and the tax authorities. It is also planned that banks be required, when considering a company loan application, to only accept the version of the financial statement usually submitted to the Revenue Department.
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