Online traders will soon be taxed

The Revenue Department will propose the Finance Ministry to collect taxes from online traders after online business value is increasing and becoming popular.

Prasong Poontaneat, director-general of the Revenue Department, said a bill to collect taxes from online traders is now under consideration and is ready to propose to the finance minister this month.

He said the proposed tax came after growing popularity in the online traders and also online advertising.

Highlight of the bill is that all online trade and money transactions made in the country, including other forms electronic money, will be subjected to taxation regardless of whether business operators are not in the country.

The tax ceiling rate is set at 15% of the money paid from the earlier suggested 5%.

However he made clear of fair tax rates in accordance with the type of each business, and tax exemption and deduction.

Tarad Dot Com founder and CEO Phavud Pongwithayaphanu and president of Thai E-commerce Association, agreed with the tax collection on online trade as it would legalise the online business.

But what the Government should educate online retailers and persuade them into the tax system voluntarily rather than forcing them into the system.

Source: Thai Public Broadcasting Service (Thai PBS)