The Thai cabinet has approved a draft bill that will require foreign tech companies, including Google, Apple, Facebook, and Amazon, to pay value-added tax (VAT) locally.
The bill, which is expected to pass when voted on by Parliament, will require platforms and companies not based in Thailand to pay 7 percent VAT if they earn more than 1.8 million baht per year from digital services in the country.
The bill could add more than three billion baht in tax revenue from the move, following in the steps of other Asian countries, including Indonesia and the Philippines.
The Deputy Government spokeswoman, Ratchada Thanadirek, said that the bill is fair as international companies would pay the VAT if located in Thailand.
Her thoughts were echoed by the President of the Thai e-Commerce Association, Thanawat Malabuppha, who said he was happy with the move as it will level the playing field for Thai businesses, continuing:
“Anyone who makes money from Thai people should pay taxes to the country.”
Thailand is one of the fastest-growing digital economies in the region and has been considering a tax bill aimed at international tech companies for years.
According to analysts, the situation created by the covid-19 pandemic has led to a push by governments around the world to tax digital companies, which will witness a boost in revenue as more people stay at home.
Source: Reuters
