High volume transactions often come with a high volume of paper work - this has long been the case for Thailand. By combining electronic payments with electronic withholding tax service, the paper processing associated with such transactions can be greatly reduced, enabling operations to be faster, more transparent, and more efficient for all parties involved.
Stirring up a colourful solution for a global chemical company
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.
Within the first month, we saw a reduction of 43% of paper usage in the company, and we’re proud to be advancing in the right direction to improve our efficiency. We are hopeful that with continued support from the government and from our banking partner, we’ll realise our ambitions to be completely paperless, efficient and uphold our group’s commitment to the global economy.
Find out how we’re supporting other businesses on their digital transformation journey in our new client case study booklet.