The government recently issued an emergency decree providing a “tax audit exemption program” that is effective and available to taxpayers beginning in 2016. The program basically provides incentives for taxpayers to regularize their tax affairs on a forward-looking basis, by providing protection from tax audits.
Under the program, any tax examination, inquiry, assessment, payment demands or criminal prosecution in respect of income generated prior to 1 January 2016 will be waived. Eligible taxpayers include companies and partnerships whose revenue does not exceed THB 500 million (approximately U.S. $14 million) for any accounting period ending on or before 31 December 2015—thus, a program available for many small- and medium-size enterprises (SMEs). Accordingly, income tax, value added tax (VAT), specific business tax (SBT), withholding tax and/or stamp duty due by an eligible company or partnership will be exempt from audit if such taxes relate to income generated or expenses incurred in any accounting period ending on or before 31 December 2015.
Read a February 2016 report prepared by the KPMG member firm in Thailand
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