In light of the logistical challenges created by COVID-19, the Ministry of Finance has announced deadline extensions for the delivery of goods and submission of notification to the Excise Department for goods that have received tax exemptions and refunds under the Excise Tax Act BE 2560 (2017).
The “Ministerial Regulations on tax exemptions and tax refunds for goods exported outside the Kingdom or imported into duty free zones and for which industrial operators or importers are entitled to tax refunds or exemptions (Issue No. 2) BE 2563” (the “new Regulations”) were published in the Government Gazette on July 8th, 2020 and came into force the next day. The new Regulations revise a previous Ministerial Regulation, the “Ministerial Regulations on tax exemptions and tax refunds for goods exported outside the Kingdom or imported into duty free zones and for which industrial operators or importers are entitled to tax refunds or exemptions BE 2560 (2017).”
Industrial operators and importers who wish to receive a tax exemption or refund on goods exported outside of Thailand or imported into a duty-free zone must submit a request to the Director-General of the Excise Department, along with supporting documents, at the Excise Office in the area where the industrial facility, bonded warehouse, or storage facility holding the goods is located. After inspecting the documents and deeming them to be correct, the Director-General will issue a tax-exemption order. Under the new Regulations, the successful applicant will proceed as follows:
Once the Director-General issues the tax-exemption order, the taxpayer must send the tax-exempted goods outside of Thailand or into the duty-free zone within 60 days from the date the goods left the factory or the bonded warehouse. Previously, the deadline was 15 days.
Once the goods are exported out of Thailand or imported into the duty free zone, the taxpayer must notify the Director-General and submit proof of customs clearance to the Excise Area Office where the excise filing form was submitted within 90 days from the date the goods were sent out of Thailand or brought into the duty free zone. The original deadline was 60 days.
In both cases, the taxpayer may apply for a deadline extension by submitting a request to the Director-General through the relevant Excise Area Office. The request must be made before the deadline and within the time specified by the Director-General.
Government Gazette, Page 9, Book 137, Section 51 Kor, Announced on July 3, 2020
Ministerial Regulations on tax exemptions and tax refunds for goods exported outside the Kingdom or imported into duty free zones and for which industrial operators or importers are entitled to tax refunds or exemptions (Issue No. 2) BE 2563 (2020)
As the current deadline for the delivery of goods, submission of notification to the Excise Office, and submission of proof for customs clearance is hindering the exportation and importation of goods into duty free zones, along with measures implemented by some countries to halt transportation due to the COVID-19 outbreak without a set date for a return to normal activities, the Ministry of Finance has deemed it appropriate to amend the deadline to allow more flexibility for industrial operators or importers.
By virtue of Section 5 (1), Section 103 (1), and Section 107 of the Excise Tax Act BE 2560 (2017), the Minister of Finance has issued Ministerial Regulations as follows:
Article 1 This regulation shall come into force the day after the date of its publication in the Government Gazette.
Article 2 The provisions of Article 7 (1) of the Ministerial Regulations on tax exemptions and tax refunds for goods exported outside the Kingdom or imported into duty free zones and for which industrial operators or importers are entitled to tax returns or exemptions BE 2560 (2017) shall be revoked and the following shall be used instead:
“Article 7 Once the Director-General has issued a tax exemption for the goods specified under Article 6 (1), the taxpayer shall send the tax-exempted goods out of the Kingdom or into the duty free zone within sixty days (60) from the date the goods have left the factory or bonded warehouse. If necessary, the taxpayer may request a deadline extension by submitting a request to the Director-General at the Excise Office in the area where the filing was done, before the original deadline and within the time specified by the Director-General.”
Article 3 The provisions of Article 11 (1) of the Ministerial Regulations on tax exemptions and tax refunds for goods exported outside the Kingdom or imported into duty free zones and for which industrial operators or importers are entitled to tax returns or exemptions BE 2560 (2017) shall be revoked and the following shall be used instead:
“Article 11 Once the goods have been exported out of the Kingdom or imported into the duty free zone, the taxpayer shall submit notification and send proof of customs clearance to the Director-General at the Excise Office in the area where the filing was done within ninety days (90) from the date that the goods were sent out of the Kingdom or into the duty free zone. If necessary, the taxpayer may request a deadline extension from the Director-General before the original deadline and within the time specified by the Director-General.”