Benefits of Using E-Tax System
Since 2019, the e-tax system has helped a lot of entrepreneurs. Since they do not have to carry a huge amount of documents and it is easy to use. They still can send an e-tax invoice, e-tax receipt and e-withholding tax to the Revenue Department through email rapidly. This implementation system has increased the number of e-tax invoices, e-receipt, and e-withholding tax users steadily compared to 2021 as follows:
- The number of entrepreneurs who used the e-tax invoice and e-receipt increased to 1,657 cases from 1,252 cases.
- Payers of withholding tax who paid through the e-withholding system increased to 2,304 cases from 1,513 cases.
- Payees of withholding tax who paid through the e-withholding system increased to 714,683 cases from 915,997 cases.
Thus, the cabinet has recently approved the principle of draft royal decree by virtue of the Revenue Code regarding the tax exemption and the draft ministerial regulation by virtue of the Revenue Code regarding income tax, total of 2 legislations, as being proposed by the Ministry of Finance for the reason to promote the digital transformation and the incessant use of e-tax invoice, e- tax receipt and e-withholding tax system. Moreover, the Ministry of Finance decided to extend the period of tax measures to promote the e-tax system by virtue of the tax exemption from the Revenue Code (No. 718) B.E. 2564 (2021) and the usage of e-withholding tax system by virtue of the income tax from the Revenue Code until December 31st, 2025. They reduce the withholding tax rate for paying assessable income through e-withholding tax to 1 percent from 2 percent, they believed that this would trigger the entrepreneur to remit taxes through e-withholding tax system more.
Besides, the Ministry of Finance also considered the loss of income and the expected benefits by virtue of section 27 and section 32 of the State Fiscal and Financial Disciplines Act B.E. 2561 (2018) as follows.
1. Estimate of the loss of income
The extension of tax measures to promote investment in an electronic tax system would cost the loss of corporate income tax around 20 million baht. However, the extension period of tax measures to promote investment in e-withholding tax would not cost any taxes since the entrepreneurs have to calculate the assessable income with income tax.
2. Estimate of the benefit
It would widely spread how to use e-tax invoice, e-receipt, and e e-withholding tax system between the private sector and the public sector which could trigger digital economic and digital transformation from either the private sector or the public sector. Moreover, this extension period could help reduce the cost of document storage.
To conclude, the principle of this draft royal decree is about to extend the period of tax measures for promoting investment in the e-tax system by deducting expenses 2 times whilst this draft ministerial regulation is about to extend the period of tax measures for promoting the usage of e-withholding tax system by reducing the withholding tax rate from 5%, 3% and 2% to 1% for paying assessable income through e-withholding system.