Thailand
Thailand: Authorities focus on cash transactions
Entrepreneurs receiving cash from business activities will be scrutinised by authorities more vigorously than those opting to register via an official online payment platform, says the Bank of Thailand.
Business owners or merchants that avoid payment via the PromptPay money transfer platform will be monitored by relevant authorities more closely than those that offer online payment, said governor Veerathai Santiprabhob.
The digital payment platform offers transparency, he said.
The central bank chief’s comments came after business operators raised concerns over taxation and avoiding transactions via PromptPay following the enforcement of the E-payment Act on March 21.
The Revenue Department has insisted the purpose of the Act is not only tax collection, but also convenience for taxpayers. Yet some merchants do not believe this rationale and prefer to do business in cash, offering a 3-20% discount for using to cash to purchase products, reported Thansettakij Multimedia.
The law requires financial institutions to report to the Revenue Department transactions for customer accounts that receive either more than 3,000 money transfers a year, or at least 400 money transfers with a total value of 2 million baht or more a year.
The law is not focused on online vendors, as they are subject to income tax according to the Revenue Code, the same as everyone else.
The central bank, meanwhile, plans to encourage a business-to-business (B2B) PromptPay service.
Siritida Panomwon Na Ayudhya, assistant governor of payment systems policy and the financial technology group, said the central bank plans to launch a pilot project of B2B PromptPay soon, working with the government and firms, including financial institutions. It is a voluntary project, and Ms Siritida said B2B PromptPay adoption has taken more time to complete than consumer-to-consumer (C2C) service.
Source: https://www.bangkokpost.com/business/finance/1658840/authorities-focus-on-cash-transactions