Armed forces deals to be signed in-country
Govt measure aimed at ensuring tax clarity
- Published: 11 Dec 2012 at 00.00
- Newspaper section: News
The government has ordered the armed forces to sign all weapons and equipment procurement contracts in Thailand to ensure proper taxes are paid.
Any military procurement deals with companies registered locally or abroad are now required to be signed in-country so that 7% value-added tax and a 1% withholding tax can be applied to the transaction, a navy source said.
In recent years, weapons deals were often signed abroad and tax payments were not factored into procurement budgets, making it difficult for the Revenue Department to collect tax from the deals, the source said.
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