Summary of the Tax Controversy on Transfers and Deposits Over 3,000 Times per Year: Who Is Actually at Risk of Being Audited?

This has become a hot topic causing alarm among young people and online merchants after news reported that anyone with deposit or incoming transfer transactions exceeding 3,000 times per year must report "tax" to the Revenue Department. This has caused concern over whether helping friends buy concert tickets or splitting meal costs might increase the risk of tax collection.

This article by Thairath Money summarizes and clarifies the fear surrounding what is legally called "specific transactions" or the e-Payment criteria, enforced since 2019. This allows the Revenue Department to access financial transaction routes and more accurately screen income earners for the tax system, also supporting modern electronic transaction documentation.

What are "specific transactions"?

Under the "specific transactions" criteria, all financial institutions and electronic money providers (e-Wallets) in Thailand must report to the Revenue Department any deposit or incoming transfer transactions (receiving side), counting the total across all accounts within one year for that institution or provider under these conditions.

• 400 times or more with total incoming transactions of 2 million baht or more, or
• 3,000 times or more regardless of total amount.

What information does the Revenue Department receive?

If you meet the criteria, the Revenue Department will receive the following information:

• Identification number
• Full name
• Bank account number
• Number of deposit/incoming transfer transactions
• Total amount of deposits/incoming transfers for the entire year

However, it is important to emphasize that banks send "data," not "tax payments." They want to know how much money comes in, but this does not mean immediate tax collection. Also, only the receiving side (deposits/incoming transfers) is counted. Outgoing transfers for purchases or bills are not counted in the 3,000 times. Counts are consolidated per bank (for example, three accounts in Bank A are combined, but not combined with Bank B).

Example cases: Who is at risk? Who is safe?

Case A: Frequent group payers (Safe)

Boy often buys concert tickets and splits meal costs with friends. He received transfers into his account 500 times this year, totaling 1.5 million baht.

Result: Not subject to reporting because although the number of transactions meets the threshold, the total amount does not reach 2 million baht, and the number of transactions is below 3,000 times.

Case B: Online seller (At risk of reporting)

Joy sells clothes online, receiving transfers of 200-300 baht each time, every day, totaling 3,500 times a year with a combined amount of only 800,000 baht.

Result: Reported because the number of transactions exceeds 3,000 times, despite the low total amount.

Case C: Person transferring money between own accounts (Be cautious)

Kong frequently transfers money between his accounts at different banks to manage funds.

Result: Incoming transfers to the destination account will count as "receiving side" for that bank. If frequent enough to meet criteria, it will be reported.

How will transaction data be used?

• The Revenue Department will analyze the data alongside other information using computer systems to categorize taxpayers for appropriate supervision and services.
• If data falls into a risk group, the Revenue Department will then conduct further in-depth consideration.

Key points and preparation tips

• For the general public and young people: Being reported does not mean immediate taxation, and the Revenue Department will not audit everyone. Only those genuinely at risk will face detailed scrutiny. If you do not run a business but have many transfers, the Revenue Department will manage and provide appropriate services.
• For merchants: Prepare by keeping accurate income and expense records, retaining documents, and filing taxes on time.
• For those splitting payments with friends: Try to keep records or receipts to demonstrate good faith that the money is "non-profit."
• Data confidentiality: The Revenue Department keeps data confidential, with penalties for officials who disclose it, and uses computerized analysis for transparency.

In conclusion, transferring more than 3,000 times is not frightening if the source of funds is clear. Understanding legal criteria and managing "group payers" or "sellers" with awareness and evidence preparation will help avoid future complications.

Source: Revenue Department

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