Taxes in Thailand are going on a roller coaster ride and we think you should know all about it. Here are three things that are happening to Thailand’s taxes right now.
1. Thais May Pay Taxes via Credit Card Soon
Thailand is apparently ready to accept bank cards when it comes to paying taxes. The Revenue Department has signed a memorandum of understanding (MoU) with a private company. This memorandum will allow bills payment to be made through credit cards. The company has developed an online application entitled “easyBills” which will allow taxpayers to file their bills online and pay using credit cards issued by Thailand banks.
The Revenue Department’s deputy director-general, Phadcha Pongkeeratiyu was the main representative at the signing ceremony. The MoU is with the company, 2C2P (Thailand) Co who developed the new tax payment channel. Ms Phadcha commented that the project was a collaborative effort between a number of public and private organizations that are in charge of tax payments. With this project, Ms Phadcha expects a boost in electronic tax filing. She said that Thailand aims to compete in terms of electronic transactions and payments so as to be at par with international standards.
Despite this advancement, taxpayers can still opt to pay at banks, post offices, and department stores.
2. New Thai King, Maha Vajiralongkorn May Get a $3.5 Billion Inheritance Tax
The successor and son of the iconic king of Thailand who was the world’s longest-reigning monarch could be facing a huge amount of tax owed to Germany.
According to the German magazine, Manager Magazin, the assets inherited from King Bhumibol Adulyadej, which amounts to $10.6 billion, could be taxed by as much as $3.5 billion. This is because the current king, Maha Vajiralongkorn, has two villas in the state of Bavaria. Therefore, he is subject to an inheritance tax.
The tax is expected to be paid to avoid any tension with Germany according to Paul Chambers, an expert in international relations at the Institute of Southeast Asian Affairs in Chiang Mai. He said, “If the German authorities insist upon the Crown Prince paying an inheritance tax… then I assume that Thai state authorities will cry foul and pick up the tab, given that this issue would be a political ‘hot potato’ in Thailand.”
3. Thais Could Have a Holiday Tax Break
The government of Thailand is speculated to offer tax breaks once more this holiday season. The implementation has already been tried last year when the government gave its citizens a tax break of up to 15,000 baht in the last seven days of 2015. The move boosted the full-year GDP of Thailand for 2015 by 0.2 points.
This year, it could happen again. The Finance Ministry is considering to do this again for an estimated two weeks to one month period as a stimulation for consumer spending all over the country.