ON MARCH 25, the Act to waive tax penalty, surcharge and criminal charge under the Revenue Code regarding any of the taxes concerned (referred to as ‘Tax Amnesty programme ’) was published in the Royal Gazette before entering into force on March 26.
This programme is only applicable to Small-to-Medium Enterprises (SMEs) with income from its business for the last accounting period ended on or before September 30 of not exceeding Bt500 million (for the accounting period of at least 12 months), and had submitted corporate income tax returns with the Thai Revenue Department (TRD) before the law came into force.
A qualified taxpayer for this Tax Amnesty programme must not have record of having issued or used false tax invoices where the TRD has brought the case before the police under criminal law prior to the Law came into force.
To participate in the Tax Amnesty programme, the taxpayer has to register with the TRD by June 30.
Then, the qualified taxpayer shall file a tax return and pay tax that has not been paid or paid incorrectly in full by June 30 with respect to the taxes including (1) Corporate Income Tax (CIT) for the accounting period(s) that started from or after January 1, 2016 to December 31, 2017, (2) Value-Added Tax (VAT) and Specific Business Tax (SBT) for the monthly periods starting from January 2016 to the month before the law came into force, and (3) Stamp Duty (SD) for documents that the Director-General has required duty payment by cash instead of adhesive stamp, executed from January1, 2016 to March 25, 2019.
In addition, the qualified taxpayer shall file all kinds of tax returns under the Revenue Code for the taxes that the taxpayer has duty to deduct or remit on any transactions occurred from January 1 , 2016 to March 25 and remit the outstanding or incomplete taxes to the TRD by June 30, 2019.
All qualified taxpayers will be exempt from surcharges and penalties of CIT, VAT, SBT, and SD that would otherwise be applicable for the periods mentioned above, provided that a tax assessment or notification for payment has not been issued by the TRD prior to March 26, 2019. Moreover, the taxpayer who has participated in the Tax Amnesty programme must file all tax returns due from July 1 , 2019 to June 30, 2020 and pay taxes exclusively via internet unless it has a justifiable reasons for not doing so (to be prescribed by the TRD).
For qualified taxpayers whose tax affairs are not in order consequent to having misstated their assets, not paid or under-paid their tax liabilities, this new law should provide an advantageous opportunity to regularise their situation and re-establish their compliance record with the TRD. The concerned parties should review their tax status and consider if they will meet the qualification before joining the programme.
Contributed by BENJAMAS KULLAKATTIMAS, tax partner,
KPMG in Thailand