Tax favouritism for Jack Ma disavowed
The Revenue Department insists that taxation of local online vendors is proceeding in a fair manner and without discrimination after a message went viral on social media that said the government was taxing online sellers but providing a 13-year tax holiday to Alibaba’s Jack Ma.
The tax-collecting agency said in a release that all online and offline vendors are liable for income tax and value-added tax (VAT) and that tax incentives for Alibaba are offered by the Board of Investment (BoI), which provides privileges to investors who put money into the government’s flagship Eastern Economic Corridor (EEC).
“Investment privileges for Alibaba will be considered based on the BoI’s criteria, and such incentives aren’t provided to a particular person,” the Revenue Department said.
Moreover, the government’s 10 targeted industries do not compete with any retail or online vendors, the department said.
The much-touted EEC scheme was approved by the cabinet in June 2016 and is aimed at reviving the success of the Eastern Seaboard Development Project, which began in the early 1980s.
The EEC scheme spans 110,168 rai, covering 30 existing and planned industrial zones, with the government projecting investment value of 1.7 trillion baht in three eastern provinces: Chachoengsao, Chon Buri and Rayong.
The corridor’s 10 targeted industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
The Revenue Department said that a draft bill on e-business tax, a levy on online purchases, advertisements and website rent in Thailand earned by operators with a presence outside of the country, will soon go to the cabinet. The measure is intended to create a level playing field for local online operators, as foreign digital platform providers who do not have presence in Thailand are currently not subject to taxation.
The draft will require online business operators with a foreign presence to remit value-added tax (VAT) from transactions occurring in Thailand to the Revenue Department through an electronic payment channel. They must sign up as operators under the VAT system if they earn over 1.8 million baht a year from online trade in Thailand.