PromptPay users to get faster refund

PromptPay users to get faster refund

The Revenue Department will be able to pay personal income tax refunds in less than three days to those who file their returns for the 2016 tax year in coming months and have signed up for PromptPay.

Those who have registered their bank accounts with PromptPay, a fund transfer service, will receive personal income tax refunds faster than those who file tax returns online, which now takes three days on average, said Prasong Poontaneat, director-general of the Revenue Department.

The tax-collecting agency can link its system with PromptPay, which is provided by 15 commercial banks and four specialised financial institutions, he said.

By using PromptPay's service, the Revenue Department can pay the tax refund directly to bank accounts of individual taxpayers and will no longer need to issue cheques, he said. The department would save on the costs of issuing cheques and mailing them, he added.

Even though PromptPay's money transfer service among consumers has been delayed to the first quarter of next year from the end of October, its government-to-consumer services are already functional.

PromptPay is part of the larger national e-payment plan, a digital system that the government hopes will help Thailand become a cashless economy, boost tax collection efficiency and lower fees.

The Finance Ministry recently estimated that the cheaper PromptPay charges will reduce 180 billion baht in fees incurred by cash management, banknote printing, counting and transportation, while bank revenue from money transfers will be cut by 30 billion baht a year.

Under PromptPay, all transactions up to 5,000 baht are free; 5,000-30,000 baht transfers are charged a fee of no more than two baht; 30,000-100,000 baht transfers cost no more than five baht; and transfers exceeding 100,000 baht are charged no more than 10 baht. The exact charges will later be set by the 19 participating banks.

Mr Prasong said the amended Revenue Code to restructure personal income tax is pending royal endorsement.

The new tax structure will be enforced in the 2017 tax year.

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