Thailand announced that it will start collecting value added tax (VAT) from foreign technology companies which are operating in the country. The authorities expect this move will fetch them additional minimum revenue of $154.70 million annually.
According to senior finance ministry official, Ekniti Nitithanpraphas, after adoption of the new directive, foreign companies providing electronic services in Thailand will have to first register for VAT payments.
While speaking to reporters, Ekniti said so far a total of 69 tech companies have registered for remittance of value added tax. The government had earlier set a target of at least 100 tech companies.
These companies are divided into five categories which comprises of platforms which generate income from e-commerce and ads like social media company Facebook Inc. (FB) and search engine Google.
The categories also include intermediaries like providers of streaming services like Netflix Inc. (NFLX) and ride hailing apps like Uber Technologies Inc. (UBER).