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Thailand: Revenue Department eyes collection gap
The Revenue Department is concerned that its collection of corporate income tax in the fiscal year 2021 will fall short of its target as listed companies’ profits last year are expected to be 40% lower than the previous year, said the department’s director-general Ekniti Nitithanprapas.
Listed companies’ corporate income tax accounts for 30% of the corporate income tax the department collects from all companies. If listed companies generate less revenue, it means they will pay less income tax, which would result in a drop in the department’s tax revenue this fiscal year.
The department had set a target of 2.085 trillion baht for all tax revenue this year.
Listed companies will submit corporate income tax to the department next month. This is tax derived from the revenue they incurred in the accounting period of 2020 when the Covid-19 pandemic began and whose impact has endured right up to the present.
In the fiscal year 2020 ending last September, the department was able to collect total tax revenues of 1.833 trillion baht, falling short of the target by 13.4% and 8.7% lower than over the same period in the previous fiscal year.
In the first half of the fiscal year 2021 (Oct 2020-March 2021), it was able to collect tax revenue of 735 billion baht, 9.4% lower than the target and 8.7% lower than the same period in the previous fiscal year.
Total revenue collection from Thailand’s three tax collection departments, plus revenue contribution from state enterprises and state agencies in the first six months of this 2021 fiscal year stood at 1.018 trillion baht, 10.7% lower than the target and 10.8% lower than over the same period of the previous year.
Source: https://www.bangkokpost.com/business/2117399/revenue-department-eyes-collection-gap