Referral program refers to a sales promotion in which referring customers ("referrers") can receive a reward in a form of a commission if their referee successfully completes digital asset trading on the Bitkub Exchange's platform.
As the aforementioned commission is classified as service fee income, Bitkub Exchange is required by law to submit the 3% withholding tax from the income that a referrer earns from the program to the Revenue Department. Meanwhile, the income from the referral program is considered taxable income, thus, it is applicable to the personal income tax as well as valued added tax. For your benefit, kindly study the details below.
1. Personal Income Tax and Corporate Income Tax
As the income from the referral program is considered income from sources other than your regular income, therefore, it must be submitted through the P.N.D.90 (personal) or P.N.D.50 (corporate) form with "the income from business or any other activity under Section 40(8) of the Revenue Code" specified.
To file this tax, you can request "the withholding tax certificate (50 BIS)" from Bitkub Exchange to assemble the income that must be filed and to use it as an additional document for tax submission. To request the document, please specify the month(s) that you receive the referral commission or your desired period so that our team can check and prepare the document for you.
2. Value Added Tax (VAT)
According to the law, any individual or corporate entity that has an annual turnover exceeding 1.8 million THB from selling or providing goods or services must be registered and is subject to VAT whether they are an individual or a corporate entity.
Moreover, the income from the referral program is subject to VAT. As a result, if your annual income from the referral program combined with other income from good supplies and services that is subject to VAT exceeds 1.8 million THB, you must register for VAT by submitting the Phor.Por.01 form within 30 days from the day your annual income exceeds 1.8 million THB at the Revenue Department or the Revenue Department's website.
After registering for VAT, you must pay the 7% VAT for the income you earn from the referral program each month to the Revenue Department by using the Phor.Por. 30 form. Please note that you can reclaim the 7% VAT from Bitkub Exchange by submitting (1) proof of your VAT registration (Phor.Por. 20) and a tax invoice showing the total earnings from the referral program to Bitkub Exchange. Furthermore, you can request us to prepare a monthly summary of your total referral program earnings for you.
Lastly, kindly note that in order to reclaim 7% of VAT, we must deduct the 3% withholding tax that we pay to the Revenue Department on your behalf. As a result, Bitkub Exchange can refund you the net amount of VAT deducted from the withholding tax to you.
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