Changes to the Tax Code of March 21, 2019
On March 21, 2019, the Revenue Code Amendment Act No. 48 entered into force. It affects the interests of individuals who regularly receive money in their accounts in Thailand.
The new rules apply to the following situations:
- Receipt of money by an individual to his account or placement of a deposit if the number of transactions exceeds 3000 in one year.
- The receipt by an individual of funds to his account or the placement of a deposit if the number of transactions exceeds 400 for a total amount of more than 2 million baht in one year.
In this case, information of all transactions in the account for the year must be submitted to the tax office before the end of March of the year following the reporting year.
The obligation to submit a transaction report on the account of an individual in this case shall be responsibility the following persons:
(1) Financial institutions in accordance with the Financial Institutions Businesses Act.
(2) Government financial institutions organized in accordance with special laws.
(3) Electronic money service providers in accordance with the Payments System Act.
The Ministry of Finance should establish an accurate list of data that must be submitted to the tax office before the end of August 2019.
We remind you that if the tax office gets information that an individual received income of 2 million baht for a year, the tax amount will be 365,000 baht (based on the increasing tax rate, including all general applicable discounts and deductions).
For many people, this is a reason to think about setting up a company, especially if the money proceeds are related to business activities. Firstly, the tax base can be significantly reduced due to economic expenses. Secondly, even without them, an income tax of 2 million Baht will be 255,000 Baht.
Of course, there are many nuances, such as VAT (compulsory registration for sales of more than 1.8 million baht) or receiving on your account a salary on which income tax is already withheld. And now would be a good time to think about it.
For all questions of taxation of individuals in Thailand, please contact + 6687-348-57-03 (WhatsApp, Viber).
Author: Aleksandra Agapitova
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