On March 22, 2019, Mr. Pinsai Suraswadi, the acting advisor on tax collection strategy and spokesperson for the Revenue Department, announced that the amendment to the Revenue Code (No. 48) of 2019, aimed at supporting the electronic tax and transaction documentation system as part of the National Electronic Payment infrastructure development strategy, has been published in the Royal Gazette and will take effect from March 21 onwards. The law requires financial institutions and electronic wallet service providers to report specific transaction data to the Revenue Department, including accounts with deposits or transfers of at least 400 times per year and a total amount of at least 2 million baht per year, or accounts with deposits or transfers of at least 3,000 times per year.

           Additionally, there will be e-tax invoices and e-receipts allowing operators to create tax invoices and electronic receipts to submit to the Revenue Department themselves. Furthermore, payers can choose to pay withholding tax through banks or intermediaries, and the e-filing system will provide additional channels for online tax submissions for all types of taxes.

           The reporting of specific transaction data will cover both individual and corporate accounts, including Thai and foreign entities. Financial institutions must start collecting account data for the year 2019 to report to the Revenue Department by March 2020 and continue this practice annually. The specific transaction data will only count incoming transfers and deposits, excluding outgoing transfers or withdrawals, and will aggregate the total transfers of all accounts held by the same account holder in the same bank.

           Once the Revenue Department receives the specific transaction data from financial institutions, it will analyze the information using big data technology and artificial intelligence (AI) to categorize taxpayers into four groups: 1. Those already paying taxes with risks, 2. Those already paying taxes without risks, 3. Those who have never paid taxes with risks, and 4. Those who have never paid taxes without risks. Individuals will be summoned for additional information. This law is not intended to target online sellers or anyone else, as those who meet the specified income thresholds are already required to pay taxes.

 

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