Bangkok Bank announced its e-Withholding Tax service in line with a national effort to upgrade the country’s financial infrastructure in the “New Normal” era. The Bank will act as a middleman between taxpayers and tax recipients to help them manage the withholding tax system, issue evidence, and collect and send tax information to the Revenue Department, emphasizing the Bank’s position as a leading Digital Solutions Provider.
Bangkok Bank Executive Vice President Pipat Assamongkol said the Bank, in response to a National e-Payment policy to upgrade the country’s financial infrastructure in line with Thailand’s digital transformation, is now a provider of an e-Withholding Tax service to help entrepreneurs manage their withholding tax. The Bank acts as a middleman to collect and send withholding tax to the Revenue Department as well as issue relevant documents in electronic format. Previously entrepreneurs had to manage these tasks by themselves.
This service will help businesses save costs on withholding tax management, collection, and submission. Compared with previous withholding tax payment systems, participants in the new system will have withholding tax deducted at a reduced rate under a new Revenue Department policy. This also reduces tax procedures for the business sector, as entrepreneurs and recipients can check withholding tax details on the Revenue Department’s website 24-hours a day.
“The e-Withholding Tax service will facilitate entrepreneurs directly. When payers transfer money through the Bank electronically, the Bank will automatically deduct the withholding tax and submit the information to the Revenue Department,” said Mr. Pipat. “The payers do not have to issue a Withholding Tax Certificate to the payees and there is no need to file a form and submit the withholding tax by themselves. For entrepreneurs who do not submit the full amount for their tax, they can immediately make an additional payment via the e-Tax Payment system using Corporate iCash and BIZ iBanking.
“Initially, Bangkok Bank will provide the e-Withholding Tax service in two forms: a service for domestic fund transfers and a service to accept additional tax payments. The Bank will provide a service for international fund transfers in the future. Since its launch, the service has been well received.”
Mr. Pipat continued that the e-Withholding Tax service is suitable for entrepreneurs who have to pay for goods and services and have withholding tax transactions with many business partners. Using the e-Withholding Tax service, their business partners will receive a special withholding tax rate of 2%, down from the regular 3%, from October 1, 2020 to December 31, 2021, meaning business partners will receive more money from the payments, enhancing their liquidity management. In addition, for those who use the Bangkok Bank e-Withholding Tax service, the 3-baht per transaction fee will be waived from December 1, 2020 to December 31, 2021.
“Bangkok Bank also offers additional services such as e-Tax Invoice & e-Receipt and e-Debit Note / e-Credit Note to be sent to customers or their business partners via email or other channels. In addition, the VAT information will be sent to the Revenue Department electronically according to the specified standards. We are also ready to provide payment services to government agencies through electronic channels such as Customs Paperless e-Payment and Social Security Payment to help entrepreneurs save time and money while making transactions faster and more flexible, including the ability to easily check the transfer report online.”
“Bangkok Bank is focusing on technology development in order to extend its services in line with the government's policy to promote and grow the digital economy to enhance the integrity of the digital ecosystem. At the same time, the bank emphasizes its status as a “trusted partner” who is ready to assist customers at every step, including providing advice and support in various dimensions to help entrepreneurs stay competitive, especially in the “New Normal” era in which businesses have to face new challenges and difficulties from uncertain situations and a changing business environment. e-Withholding Tax is a digital tool that will help entrepreneurs increase their potential by reducing costs and the time required for document management. It delivers a comprehensive tax service that reduces the burden for entrepreneurs while upgrading the organization to a completely new ecosystem," said Mr. Pipat.