Tax reporting on bank accounts

The Amendments of the Revenue Code Act (No. 48) came into force last year, it affects the interests of individuals who regularly receive funds in their accounts in Thailand.

The Bank is obliged to submit financial account information to the Revenue Department by 31 March of every subsequent year in one of the following cases:

- If the number of incoming transactions (all deposits and transfers) exceeds 3000 for one year.

- If the number of incoming transactions (all deposits and transfers) exceeds 400 for a total amount of more than 2 million Baht in one year.

If an individual's account is reported, all accounts of that individual in the same financial institution will also be considered 'reporting' accounts.

The following information must be included in the financial institution's report:

- ID number, passport number, tax number or other information to identify the account holder

- Name and surname of the account holder (or the name of the unregistered partnership or the names of the group of account holders)

- Total number of incoming transactions on all reporting accounts.

- Total amount of incoming transactions on all reporting accounts.

- All reportable account numbers.

For the purpose of counting the number of incoming transactions and their amounts, financial institutions register all placements in the accounts, all money transfers to the account, receipt of funds via QR code or other electronic payment channel, receipt of foreign currency in the accounts (at the Bank of Thailand purchase rate on the last day of the reporting year).

According to the results of tax inspection reports, account holders may be subject to tax inspection, and in case of finding incorrect tax calculations - to recalculation of tax liabilities.

Additional penalties may be imposed on account holders who did not submit tax returns or who submited false information in the tax return.

The purpose of implementing such reporting is first of all to bring freelancers, online stores and other businesses, working "in black", into the legal field with proper payment of taxes.

"Black" businessmen, whose accounts will fall into the category of reporting - as a result of revaluation of income and recalculation of taxes for the previous year, they will risk paying much more taxes than working as a legal entity with white accounting (the maximum tax rate on income of an individual is 35%, while for a legal entity the maximum tax rate is 20%).