Thailand Considering New Tax on Online Foreign Companies

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Thailand is examing a new law that would require all foreign businesses with no physical presence in the country to report all their transactions to their government to determine if they should pay value added tax (VAT), which currently stands at 7%.

As of now, foreign companies can skirt Thailand’s VAT as long as they maintain a purely digital presence in the country.

The Thai Department of Revenue’s new tax bill is the response to booming online trade in the cournty as well as another means to icnrease revenues.

The legislation comes in the wake of another law, regarded as the e-business tax, that would tax online purchases and sells originating from outside the country.

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