Revenue Dept to Add 3-4 Million People to Personal Income Tax System

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Thailand’s Revenue Department announced on Monday that it expects to add 3 to 4 million people to its personal income tax scheme after the national e-payment system has been fully implemented. The increased number of taxpayers will boost government revenue without having to raise tax rates, according to Prasong Poontaneat, director-general.

Approximately 10.9 million people submit tax filings each year, but approximately 6.4 million are exempt due to their low incomes. A 2014 report from the department showed that the largest taxpayer group (1.63 million) earned between 150,001 and 300,000 baht per year. A near 24,700 reported income of over 4 million baht.

Under the new national e- payment system, all trade and service transactions will be linked with the taxation system, which will allow the agency to better estimate tax collection and prevent tax evasion.

There are five modules within the new payment system, including Any ID, EDC (expansion of electronic data capture); social welfare which will allow the government to subsidize low income earners directly through their ID cards; direct linking of the payments and the taxation system to allow for more efficient tax collection; and a campaign that will provide incentives to encourage Thais to use the new e-payment system.

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