The customer is a global colour concentrate and masterbatch manufacturer, which supplies to chemical companies both domestically and internationally. In line with the group’s mission to streamline and improve operational efficiency for all its manufacturing plants, which are often faced with a high volume of payment transactions, the company prioritised P2E (Paper to Electronics) migration.
Although a majority of the company’s payments had been digitised, the company realised that the bulk of paper handling in Thailand relates to the preparation and submission of taxes. Since Withholding Tax contributed the most in terms paper and manual processes that the company had to handle, it was prioritised to go paperless.
Once e-Withholding Tax (e-WHT) was launched nationally, the company didn’t hesitate to adopt a new solution to replace the traditional way of handling Withholding Tax. Initially, the accounting team had to prepare several physical copies of Withholding Tax certificates, arrange for their delivery and storage, in addition to preparing separate remittance files for tax payment to the Revenue Department (TRD).
With the new e-WHT system, participating banks can collect and submit Withholding Tax payments and Withholding Tax information to the Revenue Department directly. Banks are also able to do so on behalf of the customer, therefore, simplifying the entire process and significantly streamlining their payment operations. Furthermore, payees receive e-WHT advice via email as evidence of tax payment and are able to review information on the Revenue Department website.
For the company, the new system also allows them to make changes to information if necessary. This ultimately creates more flexibility and transparency for both parties.
The company was able to implement the new system with ease as there was no disruption to the existing process. Payment file format remains the same, with minor changes in the tax code as required by TRD.