Thailand: Proposed temporary reduction of customs duty surcharge for inadvertent underpayments

The relief is provided in response to the coronavirus (COVID-19) pandemic.

The relief is provided in response to the coronavirus (COVID-19) pandemic.

The Thai Cabinet approved a draft ministerial regulation that would allow a reduction of the customs duty surcharge that otherwise would apply, provided that the customs duty underpayment is resolved within a specific time period. The relief is provided in response to the coronavirus (COVID-19) pandemic.

Currently, underpayments of customs duties attract a 1% per month surcharge. However, if an importer or exporter knows that it has underpaid the customs duty and voluntarily pays the outstanding amount, a reduced surcharge can apply, but is granted on a case-by-case basis. 

The draft regulation proposes a reduction of the surcharge imposed on an importer or exporter that has underpaid an amount of customs duty (there was no intention to evade payment) and makes up the difference and pays the outstanding amount by a certain date. The surcharge reduction is to be available at a rate of 0.25% per month, as calculated from the full or the additional amount of customs duty paid from the day goods were released from customs custody or the date of exportation until the date of customs duty payment.

The surcharge relief is effective from the day after it is published in the official gazette until 30 September 2021.

Read a May 2021 report [PDF 99 KB] prepared by the KPMG member firm in Thailand



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.