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Will the New Tax ID Affect Your Business?

Thailand
23 Mar 2012

The Thai Revenue Department has implemented a new 13-digit Tax ID for all Thai taxpayers, to replace the previous 10-digit tax ID starting 1 February 2012. The new 13-digit policy is another approach by the Thai Revenue Department to establish a linkage with other government agencies e.g the Social Security Office and the Department of Business Development to improve their tracing system. Taxand Thailand discusses which taxpayers are affected by the introduction of the new 13-digit Tax ID.

What is the 13-digit Tax ID?

Thai Individual Taxpayers

to use their existing ID number issued by the Ministry of Interior (same number used in Thai Social Security System)
Juristic persons incorporated or licensed by Ministry of Commerce (MOC) to use their existing registration number issued by MOC
Taxpayers other than the above including foreigner working in Thailand to request a new 13-digit tax ID from the Revenue Department

 

Although the new Tax ID went live on 1 February 2012, the Revenue Department has extended the period of use of the 10-digit Tax ID from 1 February 2012 to 31 January 2013 for taxpayers whose withholding tax certificates, tax invoices, receipts and invoices have already been prepared using a 10-digit Tax ID number.

 

Taxand's Take


While it requires only little effort for some taxpayers as they just changed their tax ID from 10-digit to 13-digit one on their tax related documents; it has a lot of impact for licensed customs brokers. The change of Tax ID system has created a lot of extra work for customs clearance. This is something that both Revenue Department and Customs are aware of and they have said they are making an effort to eliminate this problem. More changes are expected to comply with ASEAN Economic Community (AEC) and Thai businesses must keep informed and respond quickly to stay up to date.

Your Taxand contact for further queries is:
Sorraya Boonsongprasert
T. +662 632 1800
E. sorraya.b@hnpcounsel.com

 

Taxand's Take Author