The Thai Revenue Department has recently issued new tax regulations to encourage SME corporate entities to file tax returns appropriately by providing exceptions to laws relating to tax penalties and surcharges, including criminal liability.
On March 25, 2019, the Act Exempting Penalty, Surcharge and Criminal Liability for Assisting Tax Compliance under the Thai Revenue Code B.E. 2562 was published in the Royal Gazette and became effective on March 29, 2019 (“Tax Amnesty 2019” or “Act”). The Tax Amnesty 2019 provides penalty and surcharge exemptions for taxes stipulated in the Act and the criminal liabilities under the Revenue Code for SME’s having total income not over THB 500 million from the last financial year period of not less than 12 months, ending on or before 30 September 201,8 and filing corporate income tax returns to the Thai Revenue Department (“TRD”) before the Act entered into force.
Apart from the requirement above, a taxpayer who will be qualified to obtain the tax and criminal liability exemptions under Tax Amnesty 2019 must proceed as follows:
- Register with the TRD via the website by 30 June 2019.
- Submit the following taxes that have not been paid or paid incorrectly to the TRD by June 30:
- Corporate Income Tax for the financial years of 2016 and 2017;
- Value Added Tax and Specific Business Tax from the months of January 2016 to February 2019; and
- Stamp Duty for instruments executed starting from January 1, 2016 to March 25, 2019 and required to duty paid by cash instead of stamp duty affixed.
- Filing all tax returns required by the Revenue Code where the taxpayer is responsible to deduct or remit for every transactions arisen from January 1, 2016 to March 25, 2019 and submitting the outstanding and incomplete taxes to the TRD by June 30, 2019.
- Filing all tax returns and application to pay Stamp Duty in cash for all taxes under the Revenue Code via TRD’s internet filing from the period of July 1, 2019 to June 30, 2020 unless it has justifiable grounds for not complying.
Please note that in the case a Tax Assessment letter or Notice of Stamp Duty and Surcharge payment was issued before the enforcement of the Act, the tax exemption under Tax Amnesty 2019 will not apply. Also, if a taxpayer does not comply with the requirements aforementioned, the benefit under Tax Amnesty 2019 shall terminate and TRD shall proceed in accordance with the relevant Revenue Code.
Additional sources in Thai language: