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ResourcesCorporate and Tax AdvisoryThailand Tax LawAmnesty From Certain Thai Corporate Tax Penalties

Amnesty From Certain Thai Corporate Tax Penalties

Transcript of the above video:

As the title of this video suggests, we are discussing a recently promulgated Amnesty for those Companies that may have problems with their Thai Corporate income tax. 

A recent law promulgated in Thailand entitled The Act for Exemption on Penalties, Surcharges and Criminal Offenses in Support of Operations Under the Revenue Code B.E. 2562, also known as Tax Amnesty Act; this law came into effect on March 26th, 2019. So there is a new law. Amnesties for taxes are not uncommon. You see these things promulgated by various tax authorities throughout the world. The IRS has had them in the past and Thailand does them from time to time. This current one seems to be more aimed at getting people more focused on filing online and they are basically allowing folks who have discrepancies if you will in their prior tax filings, to go ahead and rectify them, basically without there being any real penalty to them. This law pertains to Companies or Juristic Partnerships subject to corporate income tax and you have got to meet the following criteria. Now these are just kind of bullet points. I am not going to go into this in super detail. For those who are really worried about this it is a really good idea to contact a legal professional for tax advisory services to understand how this works. 

So it is basically for those Companies it pertains to those are liable for corporate tax on that profit. The taxable income from the business for the last accounting period must have ended on or before September 30th, 2018; the amount must not be higher than 500 million Baht; and the company must have filed a PND 50 form, that is basically your audited financial statement for the last accounting period concluding September 30th, 2018 by March 25th, 2019; and no record of commission of falsified tax invoices or fake tax invoices and the Revenue Department has never brought a criminal case to the police before the amnesty came into effect. An application for the Amnesty must be filed at the Revenue Department by filing the relevant documentation pursuant to the regulations promulgated by the Director General of the Revenue Department to the official website of the Revenue Department www.rd.go.th between April 1st, 2019 and June 30th, 2019.  So June 30th is the "drop dead" date for enjoying this tax amnesty for those who are watching this video. Payment of relevant unpaid tax per the timelines set forth in the regulations.  So that is a lot going on with this. I am not going to get into the specifics but you have to pay up your taxes but you won't be accrued a penalty. 

Again let me just go through my bullet points further. Those qualified in compliance with the relevant rules shall be exempt from penalties and fines and also from possible criminal liability.

So it is it true amnesty if you get in before the deadline and get your situation rectified, they will go ahead and you know it is sort of a "no harm, no foul" situation. 

Now something to keep in mind and again this was further in the information in the ACT. Those who then enjoy this benefit they have to start doing all their filings online subsequent to seeking the Amnesty.

So those who really are worried about this, it is a really pretty good idea to go ahead and seek some legal advice and some tax advisory advice with respect to how to enjoy the benefits of the Amnesty and go ahead and get the Company back into compliance.