Bookkeeping, financial statements and corporate income tax

A resident taxpayer may claim the same allowances as a Thai national where the conditions are met: the personal allowance, a spouse with no income, children, qualifying parents, health and life insurance premiums with Thai insurers, social security contributions, provident fund contributions, and mortgage interest on a Thai home. Supporting foreign documents such as a marriage certificate or birth certificate must be accompanied by a certified translation when officials request one.

Under the Accounting Act B.E. 2543, the company must appoint a bookkeeper with the qualifications prescribed by the Director-General of the Department of Business Development, keep accounts in accordance with Thai financial reporting standards, close the books and prepare financial statements at least once a year, have them audited by a licensed CPA, and retain the accounts and supporting documents for at least five years.

A limited company's financial statements must be audited by a licensed CPA and approved by the annual general meeting of shareholders within four months of the financial year end, then filed with the Department of Business Development within one month of that approval, currently through DBD e-Filing. The shareholder list, form BOJ 5, is filed within fourteen days of the annual general meeting.

PND 50 is the annual corporate income tax return, filed within 150 days of the end of the accounting period together with the audited financial statements. PND 51 is the half-year return, filed within two months after the last day of the first six months of the accounting period. Under-estimating net profit by more than 25% without reasonable cause attracts a surcharge under the Revenue Code, so the half-year estimate should be prepared conservatively.

Yes. A registered company that has not started trading or has no revenue must still keep accounts, close its books, have them audited, file financial statements with the Department of Business Development, and file corporate income tax returns on time. Neglecting this accumulates fines and blocks later transactions such as opening bank accounts, renewing work permits, or selling the business.

An employer with one or more employees must register as an employer and register its insured employees with the Social Security Office within thirty days of hiring, and remit contributions by the 15th of the following month. Lawfully employed foreign staff are inside the social security system on the same basis as Thai employees, and the employee's contribution is deductible on the personal income tax return.

The usual sequence is: obtain the original from the issuing body — a Revenue Department certificate of tax payment, or financial statements certified as true copies; prepare an English translation; have the translation certified by the Legalization Division of the Department of Consular Affairs; and, where the destination requires it, have the destination country's embassy legalise it afterwards. Some destinations accept certification by a Notarial Services Attorney directly, so confirm the recipient's requirement before you start.

The Legalization Division of the Department of Consular Affairs certifies that a translation is complete and faithful to the original; it does not restrict who may translate. The translation must be accurate, spell personal and corporate names exactly as they appear in the passport and the company affidavit, and reproduce every figure and caption in the financial statements. Some destination authorities, particularly European tax offices, additionally require a translator registered in that country.

A company files the half-year return PND.51 within two months after the end of the first six months of its accounting period, and the annual return PND.50 with audited financial statements within 150 days after the year end. Financial statements must be submitted to the Department of Business Development through DBD e-Filing within one month of shareholder approval, and the annual general meeting must be held within four months of the year end.

Foreign employees working legally for a registered employer must be enrolled under Section 33 like Thai staff. The standard contribution is 5% from each side, computed on a wage base capped between THB 1,650 and THB 15,000 per month, so a maximum of THB 750 monthly. Benefits cover sickness, maternity, invalidity, death, child allowance, unemployment and old age; the old-age portion can be claimed on leaving employment and the country under Social Security Office conditions.