Since its introduction in 2016, Thailand’s SME business scheme has gained the attention of over 20,000 SMEs. The single account scheme assists business owners by helping them avoid potential criminal liabilities and delayed payments.
According to the Bangkok Post, Director-General of Thailand’s Revenue Department Ekniti Nitithanprapas revealed that from 2016-2017, around 24,000 SMEs opted-in to the scheme to help with managing their financial accounts. SMEs that participate in the scheme will be able to use the amended financial statements to seek loans from financial institutions.
While many SMEs already signed up for the single account scheme, thousands of others have been urged to comply with the scheme. The Revenue Department recently found out that many SMEs kept more than one account to understate their tax bills.
Out of 460,000 SME operators who initially registered for the scheme to get backdated tax payment exemptions, some still understated their tax payments. The scheme is set to conclude at the end of June this year, so this would be the last chance for said operators to comply.
Aside from being required to pay delinquency tax fees to avoid criminal liability, participating SMEs have also been required to make electronic tax filings for at least one year from 1 July 2019.
President of the Federation of Accounting Professions Chakkrit Parapuntakul said the amendments in Thailand’s single account business scheme were put into place to ensure that SME accounts do not violate any Thai business laws.
The Thai government continues to find ways to help SMEs start under secure and non-fraudulent accounts. Last week, the Shenzhen Stock Exchange (SZSE) signed a Memorandum of Understanding with the Stock Exchange of Thailand (SET) in a bid to further provide assistance for Thai SMEs.