Online merchants make some noise! Recent news presents some online merchants who have been charged for retrospective taxation. Some of them have to pay 12 million baht! In this article, we will talk about the online sales tax that online merchants should know. Let’s get started.
Today’s topic is about “Personal income tax” which a lot of onlines merchants are now facing. The concept of online sales income is “buy and sell” which is categorized in section 8(income 40(8)). Also it does not get any tax exemption.
Online merchants who did not register as a juristic person were considered as a person who needed to pay tax. Online merchants can do tax allowance in 2 ways; as an actual payment and 60% lump-sum payment.
1.Tax allowance from an actual payment
This is suitable for merchants who do records of incomes and expenses with all the proof to verify. Including the high-cost online shop which has to use net income after the cost deduction to calculate the tax allowance.
2.Tax allowance for 60% lump-sum of money
This is suitable for merchants who are not good at recording the incomes and expenses, and also large online shops that gain a lot from selling and have cost under 60%. The benefit for 60% tax allowance is no need to file any document to the Revenue Department.
Formula for personal income tax is (income – expenses – allowance) * tax rate=the amount of tax to pay. The important part is income and allowances. Merchants who earn more than 1.8 million per year need to register as a juristic person.