Tax Department Redlining Internet Booking Sites

Posted: 08 Dec 2010 | 6:00 am

Thailand's revenue department is viewing the non-traditional accommodation market of internet hotel and property rental sites with increasing interest.

According to recent public comments by officials many of these enterprises fall out of the provincial tax base and the Government is keen to increase public funded revenue.

Remarks have centered on the subject of internet booking sites which often have listing for villas, condominiums and apartments which are owned by foreigners transact business though the web and then remit money directly to owners with no tax paid.

Another area of concerns has been voiced over serviced apartments or condo hotels which do not have licenses to sell daily accommodation but have been competing with hotels which have to collect tax.

Moving toward 2011 the Provincial tax authorities are keen to tap into new income streams given that well over half of island tax collections are already in the hotel sector, so fishing where the fish are makes the most sense.

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