International e-commerce transactions are unlikely to be taxed anytime soon, at least not until agreements are reached with other countries, according to a Finance Ministry inspector-general.
Lavaron Saengsanit, who supervises the ministry’s tax reform, said on Monday the ministry’s new e-business bill had already been completed and was being considered by the Council of State.
“But before taxing online transactions, discussions must be held at an international level to decide at which point of a transaction the tax should be collected,” he said.
A lack of awareness and cooperation is a major hurdle in tax collection, says Mr Lavaron. (Post Today file photo)
The bill was prepared at this time to ensure the legal framework is ready whenever conclusions on the issue are reached at the international level.
Mr Lavaron added even the United States could not collect e-commerce tax at present.
Among the debatable issues are double-taxation and whether a company can be taxed if it does not have an office in Thailand.
Commenting on other areas of tax reform, Mr Lavaron said the remaining issue was the Tax Code, after the revised Excise Tax Act and the Customs Act had already taken effect.
“The revision of the Tax Code is being handled by a committee led by the permanent secretary. Working groups of no more than 10 each will then look into certain areas, starting with those with the biggest impacts,” he explained.
One of the challenges involving tax collection is the lack of awareness and cooperation among taxpayers.
“Our officials have a hard time reaching night entertainment venues or vendors at fresh markets with brisk sales. We sometimes need to ask police for help,” he said.