Starting and maintaining a business in Thailand requires proper book-keeping and compliance with Thailand’s tax, accounting and other regulatory laws as specified in the Civil and Commercial Code, Public Limited Company Act, Revenue Code, Accounting Act and other related laws.
Thailand tax
The type of business in Thailand will affect tax rates and tax benefits according to the rules and regulations prescribed in the Thai Revenue Code. Foreign companies in Thailand have special tax requirements.
Thai company
Thai companies are registered under Thai law and are generally taxed 30% of net profit. However, the following types of Thai company are taxed at a lower rate:
- Thai company with less than 5 million baht paid-up capital
- Thai company with Stock Exchange of Thailand (SET) registration
- Thai company recently registered with the Stock Exchange of Thailand (SET) and Market for Alternative Investment (MAI) within 3 years from 6th September B.E.2545
- BangkokInternational Banking Facility and Regional Operating Headquarters
- Association and foundation
Foreign companies operating in Thailand
In general, companies conducting business in Thailand, whether majority Thai owned or foreign owned, are taxed at a rate according to their profit and their registered capital.
Thailand Tax Registration
Foreign companies seeking to set-up a branch or an office to conduct business in Thailand are required by Thai law to apply for tax identification number from the Thai Revenue Department.
Thailand tax Filing and payments
Thai and foreign companies in Thailand are required to comply with the following tax returns and payments procedure two times in a year.
- Submit semi-annual tax return (CIT 51 form) within two months after the end of the first six months. Tax due shall be half of the entire year projection of the company’s annual net profit.
- Submit annual tax returns (CIT 50 form) within 150 days after the closing date of its accounting period.
Thailand accounting standard
Thailand accounting services generally conform to Thai accounting standards and financial reporting standards formulated by the Thai Federation of Accounting Professions (FAP) and the Institute of Certified Accountants and Auditors of Thailand (CAAT) corresponds with international accounting and financial reporting standards.
Companies in Thailand will need to prepare and keep accounts drafted according to the Thai Accounting Standards formulated by the FAP and CAAT:
Accounting:
- Monthly financial reports (Balance Sheet, P&L)
- Withholding tax (PND 3, 53)
- Value added tax (PP 30)
- Withholding tax return (PND 54)
- Mid-year tax return (PND 51)
- Annual tax return (PND 50)
- Annual financial statement submission to the Thai government
- Record accounting transactions
- Supporting schedules for financial statements
Payroll:
- Payment transfers
- Payroll calculations
- Report distribution
- Pay-slip creation
- Banking of employee net salary
- Withholding tax (PND 1)
- Social security (SPS 1-10)
- Withholding Tax Certificate (BIS 50)
- Provident fund
- Payments to government agencies
