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published on April 24, 2018
In 2016, the Thai government of Prime Minister Prayut Chan-o-cha officially introduced the national policy of “Thailand 4.0”. The policy serves 2 major long-term objectives: to transform Thailand into a “Digital Economy” and thus become an “advanced economy” in 2032.
The policy encourages businesses toward new innovation, creativity, technology, and R&D. lt will further promote financial technologies that will have a substantial effect on all transactions in Thailand. A major cornerstone is the “National e-Payment Program” which consists of 5 master plans:
Currently, the Thai Revenue Department (RD) is implementing the e-Tax System, consisting of the “e-Tax lnvoice” and the “e-Receipt”. The e-Tax System will have an impact on all business operations in Thailand.
An e-Tax lnvoice is an invoice, credit note, or debit note provided in electronic format with a digital signature or time stamp under the e-Tax System by email. Similar to the e-Tax lnvoice, an e-Receipt is a receipt document provided according to the Thai Revenue Code in an electronic format.
Originally, the RD intended to fully implement the e-Tax System by January 2018. Though the timeline got postponed, qualified persons and companies meeting the criteria for e-Tax lnvoice and e-Receipt may now apply for the e-Tax System.
There are 2 methods to prepare an e-Tax lnvoice and an e-Receipt:
Regardless of the method, companies will have to keep an electronic copy of each e-Tax lnvoice and e-Receipt for a certain period according to the Revenue Code for the purpose of tax audit. This is similar to other physical tax documents.
Even though a new implementation timeline is yet to be announced, relevant regulations of the RD are available, effective, and in full force. The RD has legally acknowledged e-Tax documents meeting the RD's requirements. Therefore, business may utilize the e-Tax System. Businesses are increasingly adopting the electronic format: lnsurance companies issue their receipts in electronic format with digital signature and commercial banks issue tax invoices of EDC (Electronic dato capture) machine to their customers in electronic format. These examples show that financial technology – especially regarding e-Tax – is no longer a matter of the future but rather a current and on-going one.
Please note that implementing the e-Tax System can be complicated. Some small enterprises have a limited IT infrastructure and/or use a very simple accounting system. These businesses may face increasing costs due to the requirements of the e-Tax System. Ensuring that the used system is compatible and meets all relevant regulations and requirements will be a challenge for all businesses.
Furthermore, all enterprises have to ensure that the e-Tax lnvoice or e-Receipt is properly delivered to the customers when their tax point arises. lt is advisable to plan the implementation of the e-Tax System carefully.
Olarn Vasinchayangkoon
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