The internet media has emerged, impacting the daily lives of everyone, becoming indispensable, whether it's ordering food online, participating in Clubhouse, or even changing media consumption habits like watching TV through apps or reading books online. This has created significant market value, especially for online entrepreneurs who have generated substantial income in the past year. However, did you know that this year will see the implementation of taxes on online sales income?
The new tax from the Revenue Department significantly affects numerous online entrepreneurs. The online sales tax is considered income tax from trading, with calculations divided into two types:
Personal Income Tax: Applicable to individual online entrepreneurs.
Corporate Income Tax: Applicable to businesses that are registered companies.
The tax rates for online sales are not different from regular tax payments. It means the more you sell, the more tax you have to pay. The tax deduction details are as follows:
Deducting expenses at a rate of 60% of income for businesses that operate as buy-and-sell without in-house production.
Deducting actual expenses for businesses with in-house production.
Flat-rate deduction for cases where the income from online channels exceeds 1,000,000 baht, calculating tax at 0.5% of the income.
Then, the Revenue Department will know how much we have transferred, thanks to the Amendment of the Revenue Code (No. 48). The law mandates that financial institutions provide e-Payment transaction data for tax inspection, subject to the following conditions:
When there are deposits or transfers in and out of an account 3,000 times or more per year, regardless of the total amount.
When there are deposits or transfers in and out of all accounts combined 400 times or more, and the total amount exceeds 2 million baht.
How should you adjust?
Keeping comprehensive records, along with maintaining accurate income and expenditure accounts, is crucial. Additionally, preserving evidence related to transactions is essential for confirming the actual conduct of transfers, payments, or investments when the Revenue Department has inquiries about income and expenses.
If you find these management tasks challenging, especially for online entrepreneurs, Akritwist offers excellent services. These include accounting services along with legal and marketing consultations.
