Revenue mulls digital investment deduction

The Revenue Department is considering extending a tax measure aimed at supporting digital infrastructure investment by businesses.

The government approved a decree in April for businesses that invest in electronic systems, both hardware and software purchases, to double their tax deductions for this year.

But the department has yet to issue a detailed announcement of the tax deduction measure.

Although it would not be a problem in terms of deducting such expenses for taxes, the department may consider extending the stipulated period from this year-end to encourage more businesses to invest in their digital systems, told Kanittha Sahamethapat, director of the electronic taxpayer services division, to a seminar titled “The Thailand e-Tax Symposium 2019” yesterday.

There are 621 registered businesses with 194 million e-tax invoices, a rather small portion compared with the entire tax system, said Ms Kanittha.

“The digital age presents both opportunities and challenges. Businesses have to adapt digitally in order to accelerate operations and ensure greater accuracy,” she said.

Surangkana Wayuparb, president and chief executive of the Electronic Transactions Development Agency, said Thailand began using e-tax invoices before other Asean countries, with the move followed by Singapore, Malaysia and Vietnam.

The latter is scheduled to begin using this system next November, said Ms Surangkana.

The electronic tax system is considered an important element for the digital trade platform to facilitate global trade, where exports account for 70% of Thailand’s GDP, she said.

The use of e-tax invoices in 2019 is valued at US$4.9 billion globally and expected to rise to $20.5 billion by 2025, she said.