Finance

Importance Auditing, accounting, and tax compliance in all aspects of business

According to Thailand’s Accounting Act, all Thai commercial entities must keep books of accounts and supporting papers in Thailand and prepare yearly financial reports in compliance with Thai Accounting Standards. All Thai corporate organizations must also engage a Thai national accountant with a Bachelor of Accountancy degree and a Thai national auditor to audit their books and records and annual financial statements in Thailand, according to the Thai Accounting Act.

As a result, irrespective of whatever Thai firm is picked, the Thai entity must engage a Thai national accountant and a Thai national auditor who possess the requisite qualifications. Click here to learn more about National Accounting: https://www.nationalaccounts.com.au/.

  1. Submitting an annual report to a regulatory authority

The Ministry of Commerce’s Institute of Business Development requires all business types to file two sets of audited financial statements and an annual return. Audited financial statements and statutory annualized returns must be filed within five months of the entity’s fiscal year-end date. In Thailand, in addition to the audited accounts and statutory yearly report, a private limited company and an ROH entity must have an annual general meeting of shareholders.

Importance Auditing

  1. Corporate income tax compliance

All entity types must prepare and submit an annual corporate income tax report to the Thailand Revenue Department within five months of the business’s financial year-end date. The Thai Revenue Code doesn’t allow for extensions, and all late tax records are subject to an automatic 1.5 percent monthly surcharge (interest penalty).

The entity’s annual corporate income tax filings are accompanied by one set of audited accounts and a declaration of tax conformity from the entity’s director or management (as applicable). As previously stated, in Thailand, a representative office and regional office entities are not subject to corporate income tax, and yearly corporate income tax returns are solely created and submitted with the Thai Revenue Department to monitor the firm.

 

  1. Payment of value-added taxes

The firm is liable for VAT when items or services are sold or delivered to Thai consumers. All entity types must account for themselves (except regional and regional offices exempt from VAT in Thailand). Fill up and submit VAT returns to the Thai Tax Authority.

Finally thoughts

Every month, VAT returns are accounted for and filed. A VAT-liable company must account for its monthly VAT collections, submit its VAT for that month, and pay the amount of its VAT obligation to the Thai Revenue Department by the 15th day of the following month. All late VAT returns will be levied a 1.5 percent per month surcharge due to the Thailand Revenue Code’s limitation on extensions.  the advantages of a national account.