Thai Businesses Promised Tax Privileges In Govt’s EDC Expansion – Thai Law Firm

The government, under the national e-payment plan, wants to convince all sectors to switch from cash-based payments to electronic transactions. It wants to reduce the use of cash and a key element toward achieving this would be an EDC expansion in the country.

Director-general of the Department of Business Development, Banjongjitt Angsusingh, said in April 2017 that the department had issued an announcement encouraging businesses which receive payments from customers to install at least one EDC machine as another payment option available to the public. The machine's cost and installation fee would be waived and a business would be eligible for tax privileges as specified by the Revenue Department, she stated.

The Finance Ministry says there are 800,000 merchants in the country's tax system, of which 400,000 have EDC points. The focus of efforts to expand EDC usage would be on the other 400,000 merchants.

Business operators can get EDC machines from providers that are certified by the Finance Ministry, one of which is Bank of Ayudhya or Krungsri which promotes its EDC service on its website as “…another distribution channel and growth opportunity in addition to cash payment.”

A useful contact point for businesses seeking advice or assistance on matters such as taxation, accounting and auditing are law and accounting firms. BSA Law, for example, is a leading international law firm in Thailand that provides legal advice and a full range of commercial and corporate legal and financial services to the Thai and foreign communities. Established over 30 years ago, BSA Law's areas of expertise include Thai labour law, Thai law in general, company law, contracts, notarization and certification, intellectual property, insurance, real estate, investment and the process of starting a business in Thailand, as well as its taxation, accounting and auditing services.

The Thai law firm also has a Thai visa service department specializing in visa and Thailand work permit related issues.

Meanwhile, Thailand's Commerce Ministry has been drawing up a strategy to develop service businesses in the sectors of health and spa, electric vehicles and those involving the use of robots, which are grouped under the New S Curve industries.

The plan is expected to be presented for cabinet approval in June, giving the targeted service sectors a clear-cut strategy and so they can be fully supported by all the relevant government agencies and the private sector.

The draft strategy will include plans to develop human resources in the targeted sectors and the setting of standards, rules and regulations for each sector's development.

It's envisioned that the strategy once in effect will result in the service businesses playing a more significant role in the national economy. The development of the targeted sectors would also see other related sectors, such as herbs and pharmaceutical supply and laboratory services, be promoted.