The Finance Ministry will propose a new draft to reward small and medium-sized enterprises (SMEs) that agree to improve their accounting procedures by exempting them from backdated investigations.
The move is part of the ministry's carrot-and-stick approach as the government tries to persuade more SMEs to pay correct tax in return for a two-year tax cut, said Prasong Poontaneat, director-general of the Revenue Department.
"This is a New Year present for SMEs that agree to enter the formal system. However, the bill is not considered a tax amnesty, as we are not compromising with companies that are currently facing legal action for tax avoidance," he said. Another senior official said the new bill would guarantee eligible SMEs for the tax cut would not see backdated scrutiny for 2014 or before.
"Since the bill will take effect in 2016, if we find tax avoidance in the 2015 taxable year, we'll give them advice on how to correct the tax declaration. But for incorrect declaration since the 2014 taxable year backward, the Revenue Department will not get involved," the source said.
Over the past two months, the new finance minister has gradually announced new measures to aid several businesses as well as SMEs, with the two-year tax cut among the measures.
Under the new tax scheme, SMEs posting a net profit of more than 300,000 baht would be subject to a 10% rate, while those with a net profit of 300,000 baht or less would not pay tax. But the lower tax payment would apply only to SMEs with a single account.
Under the previous tax brackets, SMEs with registered capital of up to 5 million baht and revenue of 30 million were subject to a tax waiver for a net profit of up to 300,000 baht. They paid 10% for a net profit of more than 300,000 baht but no more than 3 million and 20% for a net profit exceeding 3 million.
SMEs often keep two accounts -- one for internal use and another for tax purposes that understates revenue.
The Finance Ministry will propose a new draft to reward small and medium-sized enterprises (SMEs) that agree to improve their accounting procedures by exempting them from backdated investigations.The move is part of the ministry's carrot-and-stick approach as the government tries to persuade more SMEs to pay correct tax in return for a two-year tax cut, said Prasong Poontaneat, director-general of the Revenue Department."This is a New Year present for SMEs that agree to enter the formal system. However, the bill is not considered a tax amnesty, as we are not compromising with companies that are currently facing legal action for tax avoidance," he said. Another senior official said the new bill would guarantee eligible SMEs for the tax cut would not see backdated scrutiny for 2014 or before."Since the bill will take effect in 2016, if we find tax avoidance in the 2015 taxable year, we'll give them advice on how to correct the tax declaration. But for incorrect declaration since the 2014 taxable year backward, the Revenue Department will not get involved," the source said. Over the past two months, the new finance minister has gradually announced new measures to aid several businesses as well as SMEs, with the two-year tax cut among the measures. Under the new tax scheme, SMEs posting a net profit of more than 300,000 baht would be subject to a 10% rate, while those with a net profit of 300,000 baht or less would not pay tax. But the lower tax payment would apply only to SMEs with a single account. ภายใต้วงเล็บภาษีก่อนหน้า SMEs ด้วยทุนจดทะเบียน 5 ล้านบาทและรายได้ 30 ล้านก็ต้องสละภาษีสำหรับกำไรสุทธิถึง 300000 บาท พวกเขาจ่าย 10% สำหรับกำไรสุทธิกว่า 300000 บาท แต่ไม่เกิน 3 ล้านและ 20% สำหรับกำไรสุทธิเกิน 3 ล้าน SMEs มักจะเก็บบัญชีสอง - หนึ่งสำหรับใช้ภายในและอื่นสำหรับภาษีเอนกประสงค์ที่ understates รายได้
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