Tax Reminders for e-Commerce Businesses

As extended deadlines approach for submitting year-end corporate income tax (August 31, 2020) and personal income tax (August 31, 2020) returns, the Revenue Department has issued a reminder of tax filing requirements for e-Commerce businesses in Thailand. Tax returns may be filed physically, or electronically via the Revenue Department’s e-filing system.

For the purpose of filing personal income tax (PIT), entrepreneurs who are natural persons must combine income from e-Commerce activities with other types of income, if any. These entrepreneurs must file their mid-year return (Por Ngor Dor 94) by September every year, as well as their year-end return (Por Ngor Dor 90) by the end of March of the following year. 

Entrepreneurs who are companies or juristic partnerships established under Thai law, or foreign juristic persons operating in Thailand, are subject to corporate income tax (CIT) on net profit. CIT mid-year returns (Por Ngor Dor 51), based on the company’s estimated annual net profit, must be filed within two months from the last day of the first six months of the fiscal year. Annual CIT returns (Por Ngor Dor 50) must be submitted within 150 days from the last day of the accounting period. 

Entrepreneurs, both natural persons and juristic persons, that sell products or provide services and have an income exceeding 1.8 million baht per year must be VAT registered. For qualifying businesses, VAT returns must be filed on the 15th of each month. 

A draft bill passed by the cabinet in June 2020 looks to expand the scope of business subject to VAT. Foreign e-Commerce platforms should be aware that, in the future, they may be required to be VAT registered and remit VAT to the Thai Revenue Department if they earn more than 1.8 million baht annually from the provision of electronic services to users in Thailand. The draft legislation will proceed to the National Assembly for review, potential revision, and enactment. Further developments will be monitored by MPG as they arise.

E-Commerce Law in Thailand: Release of a Third Draft

Revenue Department Imposes VAT Legislation on Foreign E-Service Providers

Revenue Department Simplifies Procedures for VAT Registration

E-Commerce License