“The Revenue Department” is set to intensify online tax collection after the National Legislative Assembly (NLA) approved the amendment to the Revenue Code, allowing for increased scrutiny of transactions exceeding 400 times a year instead of the previous 200.

          Mr. Pinsai Suraswadi, spokesperson for the Revenue Department, announced that the NLA has approved the draft of the Revenue Code Amendment Act (No. ..) B.E. ... to support the electronic tax system and transaction documentation as part of the national electronic payment system development strategy (e-payment). The law is now set to follow the legal process for implementation, which will enhance the efficiency, transparency, and fairness of tax collection for taxpayers.

          The NLA engaged in extensive discussions regarding the law, particularly its key provisions, which require financial institutions to report special transactions. These include 1. deposits or transfers across all accounts totaling 3,000 times a year, and 2. deposits or transfers across all accounts totaling 200 times a year, which has been amended to 400 times a year. The threshold for total deposits or transfers remains at 2 million baht or more.

          Previously, the Revenue Department indicated that this law would enable taxpayers to electronically file withholding tax, income tax, and value-added tax, along with related tax documents. Financial institutions, including commercial banks, state financial institutions, and electronic money service providers, will be required to report special financial transactions to the Revenue Department. Failure to comply will result in a fine of 100,000 baht and an additional daily fine of up to 10,000 baht.

          However, the push for this law aims to facilitate taxpayers who previously faced costs and time delays when filing withholding tax with the Revenue Department. Once the law is enacted, financial institutions will report data to the department, creating fairness for compliant taxpayers. The department will not conduct audits or target anyone, and compliant businesses need not fear scrutiny; if taxes are paid correctly, there will be no impact.

          Reports from the Ministry of Finance indicate that those affected by the law include online shops not yet registered for tax, corrupt officials transferring money to their own accounts, and illegal grey businesses. It is evident that this amendment does not impact compliant taxpayers, but rather aims to improve the country by ensuring proper tax payments and preventing corruption among officials and illegal trade.

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