Bangkok Bank is encouraging entrepreneurs to use e-Withholding Tax to upgrade to a Digital Business which can enhance efficiency, reduce costs and reduce work for staff. Siam Pharmaceutical and Namsiang, both bank customers, shared their satisfying experience using e-Withholding Tax, revealing that it enhances efficiency and reduces processes and paperwork. The bank plans to provide many more services that help with tax management to emphasize its focus on providing a full range of Digital Services.
Bangkok Bank Executive Vice President Pipat Assamongkol said Bangkok Bank as a 'trusted partner' is committed to using technology in services development to support entrepreneurs, so they can operate businesses conveniently, smoothly and efficiently in order to cope with New Normal business environment. The bank recently launched its e-Withholding Tax service to entrepreneurs as it can help businesses reduce cost, time and expense as well as simplify their tax management and check transactions online.
When payers transfer money through the bank electronically, the bank will automatically deduct and submit the withholding tax and relevant information to the Revenue Department. The payers do not have to file a form or submit the withholding tax by themselves. The payers also no longer have to issue a withholding tax certificate to the payees. For payers 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 as well as the Bill Payment service at the bank's branches.
The e-Withholding Tax service is suitable for organizations that have to pay for goods and services and have withholding tax transactions with many business partners, as well as organizations that want to replace manual processes with new technology. The business partners of customers who use the service will receive more money from payments, as the e-Withholding Tax service will use the Revenue Department's special withholding tax rates, reduced from 5% and 3% down to 2%, effective from October 1, 2020 - December 31, 2022. This will also help customers to enhance their liquidity management. Customers can also take advantage of the Revenue Departments double tax deduction privilege with the expense of system development to work with the e-Withholding Tax system, from January 1, 2020 - December 31, 2022
After the launch, the e-Withholding Tax service received good feedback from many entrepreneurs who use it including Siam Pharmaceutical Group, a Thai researcher, manufacturer and distributor of international standard pharmaceutical products, and Namsiang Group, an importer and distributor of industrial chemicals from leading global manufacturers as well as a provider of technical services, formulation guidelines and prototypes for cosmetics, food and food supplements.
Mrs. Darunee Yindeepholcharoen, Finance Director, Siam Pharmaceutical Company Limited, said e-Withholding Tax is a good use of technology to develop and improve the payment process for products and services to partners/service providers, as well as a good way to issue a withholding tax certificate and submit withholding tax through electronic channels. This resulted in a precise process and reduced work and paper for both the company and its partners/service providers. Changing to a digital system has enhanced the working efficiency of the organization.
Mrs. Supang Skuntanaga, Executive Vice President, Namsiang Group, said the company has a policy to bring in technology to enhance its efficiency and competitiveness. The company has been using other digital services with Bangkok Bank and is very glad that Bangkok Bank has launched the e-Withholding Tax service. The company was not reluctant at all to apply for this service as Bangkok Bank's e-Withholding Tax helps reduce the complexity in tax document management that requires a high level of accuracy and many staff to do properly. Using a digital system enables the company to work faster, reduce errors and increase efficiency as well as reduce business cost. The company has to thank Bangkok Bank for providing good services that proved its commitment to be a trusted partner and reliable close friend.
To facilitate entrepreneurs in their tax management, Bangkok Bank also offers 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.
The bank is 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.
"The bank is focusing on using technology in services development to turn all processes into digital, in line with the government's policy to promote and grow the digital economy to cut unnecessary costs for entrepreneurs. Tax payments and costs related to document management, time and staff are something all entrepreneurs must deal with. But bringing in technology to connect entrepreneurs with this tax payment and document management system delivers a full range of tax services and helps ease burdens for entrepreneurs as well as supporting them to completely upgrade their organization to a new ecosystem," said Mr. Pipat.
Source: Bangkok Bank