Mts383: E- Commerce: Homework 3

What are the current and potential E-commerce Taxation System in Thailand?
Nowadays, the percentage of e-commerce in Thailand has been increasing rapidly due
to social media (such as Facebook, Instagram, Shopee and so on), that facilitated an online
market. Many online shops can be set up without any charges. The advantages of e-
commerce are fast to do a transaction and can reach to various types of consumer. Now, there
is a new payment system called E payment, that is an online transaction that work the
same as you go to the bank. All of these are the factors that interesting start up business and
also others firm that want to expand their market by online business channels.

Since the percentage of revenue generated by the e-commerce sector, which has seen
large volume and strong growth recently. Thai government do not have tax principle for e-
commerce that could be a gap between online business and tradition business, who is a
taxpayer due to physical presence and conventional sources of income. Recently, the Thai
Revenue Department (TRD) has published the main concepts of its draft e-commerce tax law
on its website (without publishing the draft law in full) and has offered an online comment
survey form in order to gauge the private sectors view.

All in all, In e-commerce tax principle also for foreign online businesses that
conducts trade or business through electronic methods if they are having a Thai internet
domain such as Google.co.th , having created a payment system in Thai Baht or that requires
a money transfer from Thailand and any other cases as further prescribed by the Director-
General. If they fall in to one of the following conditions, shall be considered as carrying on
business in Thailand and subject to income tax in Thailand, only with respect to such income
or profits.

By the way, the establishing of e-commerce tax principle will affected with many
online businesses but it could help government to control the illegal online transaction. And
in the case of fraud, it also helps to identify and arrest the criminal by the information that
they have registered to the Thai Revenue Department (TRD).

References
http://www.internationaltradecomplianceupdate.com/2017/07/18/thailand-revenue-department-introduces-a-new-
e-commerce-tax-law/
https://www.brandbuffet.in.th/2017/07/e-business-tax-ecommerce/
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