On 25 March 2019, the Act Exempting Penalty, Surcharge and Criminal Liability for Supporting Tax Compliance with the Revenue Code BE 2562 ("The Tax Amnesty Act 2019") was gazetted, re-introducing a Tax Amnesty for Thailand SMEs. This Insight describes the provisions in the Act.
In 2015 Thailand enacted a Tax Amnesty Decree 2015 that offered a Tax Amnesty for Thailand SME 2015 and prior financial years. The Tax Amnesty Act of 2019 re-introduces an Amnesty for 2016 and later, but with different rules.
Applicability
From 26 March 2019.
Entitlements
Under this Act, if a Thailand SME did not file a tax return or filed a tax return but not correctly before 25 March 2019, and proceeds according to this Act, the SME shall be entitled to:
Exemption from penalty and surcharge for the taxes prescribed in this Act (but not exemption from penalty and surcharge for taxes under an already issued Notice of Assessment of Tax or an issued Notice to Pay Stamp Duty and Surcharge); and
Exemption from criminal liability under the Revenue Code.
Qualifications
For a Thailand corporate entity to be entitled to the exemptions from penalty and surcharge under this Act, the Thailand corporate entity:
Shall have business income for its financial year period of not less than 12 months ending on or before 30 September 2018 not exceeding 500 million baht;
Shall have filed a corporate income tax return for the financial year under 1 before 25 March 2019; and
Shall not have been an issuer or user of tax invoices who the Revenue Dept has investigated for a criminal offense before 25 March 2019.
Required Procedures
A Thailand corporate entity that chooses to claim the exemption from penalty and surcharge under this Act shall proceed as follows:
Registration
1. Register with the Revenue Department
Via the RD's website by 30 June 2019
CIT Returns for FYs 2016 and 2017
2. File Corporate Tax Returns or additional amended Corporate Tax Returns together with payment of the Corporate Tax or the additional Corporate Tax as the case may be
By 30 June 2019
VAT or SBT Returns for the months of Jan 2016 to Feb 2019
3. File Value Added Tax or Specific Business Tax Returns or additional amended returns together with the payment of the VAT or SBT or additional VAT or SBT as the case may be
By 30 June 2019
SDT Returns for instruments executed between 1 Jan 2016 and 25 Mar 2019
4. File Stamp Duty Tax Returns for instruments that are subject to Stamp Duty Tax in cash together with payment of the Stamp Duty Tax
By 30 June 2019
WHT Returns for payments made between 1 Jan 2016 and 25 Mar 2019
5. File Withholding Tax Remittance Returns for all types of withholding taxes required to be remitted together with remittance of the WHT
By 30 June 2019
All of the above Tax Returns for the period 1 July 2019 to 30 June 2020
6. File all Tax Returns and Tax Remittance Returns for all types of taxes under the Revenue Code
Via the RD's website by the required due date
Non-Compliance
If a corporate entity does not comply with the required procedures, entitlement to the exemption from penalty and surcharge shall terminate, and the Revenue Dept shall proceed according to the relevant provisions in the Revenue Code.
Our Tax Insights and Updates are general information publications focusing on the laws for meeting tax compliance obligations, and tax rights and entitlements under the laws.