Corporate Bookkeeping and Accounting Obligations for a Thai registered company

Monthly Reporting Obligations

Once a Thai Company is fully registered and ready to operate the Company needs to set up some form of Bookkeeping and Accounting system. There are many reason for this but if you need just one reason we would suggest you take a look at the Thai Civil and Commercial Code. You will soon reaize that there are a significant number of articles dealing with failure to report. You should also be aware of the complexity of most of the reporting requirements and we would suggest the use of a Corporate Bookkeping and Accounting Firm.

Filing - Income Tax, VAT and Social Security

Typically a Thai Company will file the following every month;

  • PND 1 - Income tax deductions withheld from payroll staff
  • PND 3 - Withholding Tax collected from persons
  • PND 53 - Withholding Tax collected from companies
  • PP30 - for VAT
  • Sor Por Sor 1-10 for Social Security Fund

- PND 1 - Paid to the Revenue Department. The money you pay comes from the employees pay. You collect a percentage and submit it to the the authorities on behalf of the employee.

- PND 3 - Paid to the Revenue Department. The money you pay comes from self employed contracters or freelancers. Your company can withhold a percentage (usually 3% but it can be 5%) of their payment and submit it to the the authorities on behalf of the individual(s).

- PND 53 - Paid to the Revenue Department. The money you pay comes from the company whose invoice your company will pay. You withhold a percentage, usually 3% and submit it to the the authorities on behalf of the company.

- PP 30 - Paid to the Revenue Department. Every invoice you issue may include 7% VAT and the same may be true for every invoice your company will need to pay. Every month you must add up what you paid and what you collected and submit the difference to the authorities. If its a negative amount you may carry over a credit or request money back from the authorities.

- Sor Por Sor 1-10 - Paid to the Social Security Office. Your employees will usually want to have the benefits of Social Security. In order to do so the employer and the employee must make an equal payment to the Social Security Office. The amount of the contribution is 5% of the employee's salary, paid by the employer and an additional 5% paid by the employee. The maximum either one will pay is 750 THB. The employer must collect the 5% from the employee's pay and add the company's 5% and remit both parts to SSO.

Balance Sheets & Profit & Loss Statements (P&L)

All Thai companies should prepare a Balance Sheet and a Profit and Loss Statement every month. The reason for this is that it will certainly help the Accountant and the Auditor with their work for the year end reports. A bookkeeper can easily generate these two documents for your company. It's also very good practice and can keep the shareholders very happy.

The Auditor is responsible to prepare an Opening Balance Sheet, Closing Balance Sheet and the Company's P&L Statements. Then they will prepare audited Financial Statements which need to be submitted to the Shareholders at the Annual Shareholders Meeting. Once the Shareholders approve the Financial Statements they can be submitted to the Department of Business Development.

More Complex Accounting Reports

Semi Annual PND 51
The semi-annual tax return (also referred to as the Half Year Report) or Por Ngor Dor 51 (PND 51) is usually due, August 31st. Any returns filed after this deadline will be subjected to fines. The Por Ngor Dor 51(PND 51) must be prepared by a licensed accountant. The company is required to estimate annual net profit as well as tax liability and pay half of the estimated tax amount within two months after the end of the first six months of the company’s accounting period.

The “Half Year Tax Return (PND.51)” is a prepayment of the tax payable on the forecasted net profit for the year. Basically you will need to estimate what profit you will make for the second half of the year and then pay tax on 50% of the net profit. The tax paid at that time will be credited to your annual tax liability at the end of the year. If you failed to file the half year tax return or underestimate the net profits by a margin exceeding 25% of the full year net profits without any reasonable cause, the company will be liable to pay an extra tax of 20% of the amount of the tax shortfall!

This should clearly show you how important the semi-annual tax return is. And how important it is to forecast as close as possible to the annual corporate net profit. Professional Corporate Services and its accounting team would certainly help you get the numbers right.

Annual Audit Filings PND 50
This is your annual Corporate Income Tax report. It is prepared by an Accountant and are filed with the Revenue Department (RD). A year-end Audit of the company accounts and preparation of the company’s Financial Statements are required and prepared by an Auditor. The Annual Audited Financial Statements should be filed and submitted every year for long as the company is an existing registered limited company, public company, juristic person and registered partnership, whether actively in business or not (trading or not trading).

The deadline for filing and remittance of payment is within 150 days after the closing of the accounting period. Failure to do so will incur penalties and summons from the relevant government authorities.

Both the PND 50 and the PND 51 need careful attention and strict compliance and as always we suggest you hire a good accounting firm to handle your financial affairs.

Summary

Corporate Accounting and Bookkeeping are vital parts of your company. In most cases they require complex formulas and procedures, thus we strongly suggest that clients should consult with a professional at PCS. We certainly do have solutions. And please remember the 1st consultation is totally FREE so don't hesitate to Contact Us! You can simply fill in and send us an inquiry using the contact form below. We are looking forward to helping you.

Contact PCS

Our Address

219/2 Asoke Towers Building, 2nd Floor, Sukhumvit 21 Road

Email Us

info@pcsthai-1.com

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+66 2 120 9480

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