Withholding Tax Reduction
Extension of reduction the withholding tax rate to the end of 2022
On 12 January 2021, the Cabinet approved tax measures to promote the use of the Electronic Withholding Tax system (e-Withholding Tax) by reduce the e-Withholding Tax rate at the rate of 5% and 3% to 2% for payment of assessable income through the e-Withholding Tax system. The measure is effective from 1 October 2020 to 31 December 2022 with the purpose of encouraging the cash flow of entrepreneurs in the economic system.
In addition, the Cabinet also approved another tax measure to promote investment in the e-Tax system which allows companies and juristic partnerships bring the capital expenditure, e-Withholding Tax system costs, e-Tax Invoice and e-Receipt system costs for double tax reduction as expenses from 1 January 2020 to 31 December 2022. The purpose is to reduce tax payment of private sectors and the burden of preparation of documents.
However, it is also promoting the digital economy and digitization of both public and private sectors and providing relief for impact of COVID-19 pandemic.
Legal Insight Vol. February 2021 of Bangkok Global Law
The PDF file can be downloaded via the link as set below.