Thailand to regulate digital platform businesses

To maintain financial and commercial stability, such businesses will have to provide notification before commencing operations.
By: | October 28, 2021

Thailand’s Cabinet has approved a draft decree to regulate businesses operating on digital platforms, in a bid to maintain financial and commercial stability and prevent damage to the public, according to a government spokesperson. 

Such businesses include those operating in and outside of Thailand, and include online marketplaces, food delivery, space-sharing, ride-sharing, online search engines and social commerce. 

“They are all increasingly important to the economy and society, so there is a need to oversee them,” spokesperson Thanakorn Wangboonkongchana said, reports Reuters.

These businesses will also have to notify the government before commencing operations.

In September, the government announced that it would start collecting value-added tax (VAT) from foreign technology companies like Facebook and Google, ride-hailing app Grab and streaming services such as Netflix.

READ: Thailand approved 37 billion baht in subsidies for SMEs

Companies with a revenue of over 1.8 million baht (US$54,123) will have to pay a VAT of 7% monthly.  The government expects to raise at least 5 billion baht (US$0.15 billion) in additional tax revenue each year, based on pre-pandemic estimates.