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Thailand’s Revenue Windfall: Astonishing Trillions Amassed in Taxes! Masterstroke Move in Taxing E-Services Unveiled!

Against a backdrop of a financial year that started in October 2022, Thailand had accumulated an astounding revenue. The first three-quarters of the fiscal year yielded close to a massive 1.59 trillion baht through t he overall collection of taxes, proving a dynamic momentum in fiscal performance.

An instrumental figure in this initiative, Mr. Winit Wisetsuwannaphum, the esteemed deputy director-general of the Revenue Department, pointed out that these remarkable figures were significantly attributed to the successful tax garnering from foreign platform service providers and e-service operators. This strategic move led to a whopping 144 companies registering for value-added tax (VAT), a testament to the effectiveness of the department in expanding their tax net.

Let’s delve into the numerical journey of these e-service taxes within the first three quarters of the fiscal year 2023. Starting with the first quarter which spans October to December 2022, the collection stood at a significant 1.65 billion baht. This flowed into the second quarter (January-March 2023), amounting to a similar figure, 1.64 billion baht. Ascending into the third quarter of the financial cycle (April-June 2023), the collection tipped the scale at a slightly higher, 1.72 billion baht.

The Revenue Department in this nine-month span attracted about 1.59 billion baht in total taxation. Some significant contributors to these numbers were:

  1. Value added tax (VAT), which alone contributed to a remarkable 690.53 billion baht.
  2. The corporate income tax which racked in 478.18 billion baht.
  3. Last but certainly not least, the personal income tax which accounted for 314.03 billion baht.

The e-service tax, which plotted its lucrative path in five diverse aspects, targeted a variety of online businesses. The first kind would be e-commerce platforms such as Amazon and eBay which have an ecommerce stronghold on a global level. Then we have businesses like Facebook, YouTube, Google that solidify their revenue through advertising. Intermediary businesses also form a part of this, acting as liaison for the sale of services and goods, including but not limited to, booking services for hotels, flights and accommodations. This category also includes businesses that charge fees from merchants like ride-hailing and food delivery services. Lastly, businesses that draw an income from subscriptions such as popular movie and music streaming services like Netflix and Spotify, and online gaming platforms form a part of this vast tax sphere.

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