On 25 March 2019, the Act to waive tax penalty, surcharge and criminal charge under the Revenue Code regarding any of the taxes concerned (referred to as ‘Tax Amnesty program’) was published in the Royal Gazette which will enter into force from 26 March 2019 onwards. This program is only applicable to Small-to-Medium Enterprises (SMEs) with income from its business for the last accounting period ended on or before 30 September 2018 of not exceeding THB500 million (for the accounting period of at least 12 months) who have submitted corporate income tax returns with the Thai Revenue Department (TRD) before the Law came into force.

A qualified taxpayer for this Tax Amnesty program must not have record of having issued or used false tax invoices where the TRD has brought the case before the police under criminal law prior to the Law came into force. For participating in the Tax Amnesty program, the taxpayer has to register with the TRD by 30 June 2019. Then, the qualified taxpayer shall file a tax return and pay tax that has not been paid or paid incorrectly in full by 30 June 2019 with respect to the taxes including (1) Corporate Income Tax (CIT) for the accounting period(s) that started from or after 1 January 2016 to 31 December 2017, (2) Value-Added Tax (VAT) and Specific Business Tax (SBT) for the monthly periods that started from January 2016 to the month before the Law came into force, and (3) Stamp Duty (SD) for documents that the Director-General has required duty payment by cash instead of adhesive stamp, executed from 1 January 2016 to 25 March 2019.

In addition, the qualified taxpayer shall file all kinds of tax returns under the Revenue Code for the taxes that the taxpayer has duty to deduct or remit on any transactions occurred from 1 January 2016 to 25 March 2019 and remit the outstanding or incomplete taxes to the TRD by 30 June 2019. All qualified taxpayers will be exempt from surcharges and penalties of CIT, VAT, SBT, and SD that would otherwise be applicable for the periods mentioned above, provided that a tax assessment or notification for payment has not been issued by the TRD prior to 26 March 2019. Moreover, the taxpayer who has participated in the Tax Amnesty program must file all tax returns due from 1 July 2019 to 30 June 2020 and pay taxes exclusively via internet unless it has a justifiable reasons for not doing so (to be prescribed by the TRD). 

For qualified taxpayers whose tax affairs are not in order consequent to having misstated their assets, not paid or under-paid their tax liabilities, this new Law should provide an advantageous opportunity to regularize their situation and re-establish their compliance record with the TRD. The concerned parties should review their tax status and consider if they will meet the qualification before joining the program.