Thailand’s Finance Ministry is set to tighten its tax rules for internet and technology companies like Google, with goals to have a plan in place by the end of the year, Reuters reported.
Prasong Poontaneat, director-general of the Revenue Department, told Reuters that the expanded regulations would also cover mobile transfers and internet payments.
The announcement comes about a week after Indonesia’s tax office said it is investigating Google for not paying taxes on billions of dollars of advertising revenue over the past five years. The unpaid tax amount reportedly could reach more than $400 million for last year alone.
The Thai government set up a working committee two months ago and reportedly is focused on changing existing regulations, unlike Indonesia, which is seeking back taxes from Google.
Reuters quoted Prasong as saying: “The idea is to seek appropriate solutions for Thailand and it could involve an amendment in some regulations because current laws are outdated and have been used for more than 50 years.”
The investigations come at a time when governments around the world are cracking down on tax avoidance schemes by multinational companies, such as Google, Apple and Starbucks.
US business groups have warned that the tax crackdown could slow investments by multinationals into the region.