Revenue Department is drafting new e-commerce law to tax multi-lateral IT corps

The Revenue Department has set up two ad hoc committees to study foreign laws governing e-commerce as a basis for the drafting of similar law in Thailand in order to properly tax e-commerce business operated by multi-lateral corporations such as Google and Facebook.

The department director-general Mr Prasong Poonthanet said on Monday that multi-lateral IT giants such as Google and Facebook operate e-commerce in several countries and are making huge profits but they mostly send their revenue out of those countries and, hence, pay small amount of taxes.

He said the ad hoc committees would study laws regarding e-commerce in Europe, Australia and India to find out if there are any can be applied for use in the drafting of a new law in Thailand to deal with the growing e-commerce business for the benefit of the country.

He pointed out that several countries have laws empowering their taxmen to look into the revenue of multi-lateral IT corporations so that they can be properly taxed.

Mr Prasong expected the new law to be finished next year for submission to the finance minister for consideration.

Source: Thai Public Broadcasting Service (Thai PBS)

Post Author: thailandmirror.com