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Bookkeeping in Thailand: Compliance & Standards 

Bookkeeping in Thailand: Compliance & Procedures

Overview of Bookkeeping in Thailand

Navigating Thailand’s competitive market can be tough, particularly due to the country’s unique tax and accounting regulations. To maintain compliance and streamline business operations, it’s crucial to understand and utilize professional bookkeeping services. This guide delves into the essential aspects of bookkeeping in Thailand, highlighting their significance, standards, and requirements.

Table of Contents

What is bookkeeping in Thailand?

Bookkeeping in Thailand is a method of organizing a company’s financial information, giving an ongoing and real-time view of its financial status. It involves tracking all financial activities of a company, including income and various expenses. The main documents created through bookkeeping are the financial statement and the income statement, which provide a clear picture of the company’s financial growth and performance.

The standards for bookkeeping in Thailand

Companies in Thailand must adhere to specific accounting procedures and the standards of bookkeeping in Thailand are outlined by the civil and commercial code, the tax code, and relevant laws. Key aspects include:

  • Depreciation: Variable depreciation rates depending on asset classes, which may be shorter than the assets’ useful life.
  • Pension Plan Accounting: Tax-deductible contributions only if paid to employees or approved by the Revenue Department.
  • Consolidation: Required for publicly traded companies, not for private ones.
  • Statutory Reserve: Allocation of at least 5% of annual net profits until the reserve reaches 10% of the company’s authorized capital.
  • Stock Dividends: Taxable as ordinary dividends, declared only with an approved increase in authorized capital.

What are the essential documents for bookkeeping in Thailand?

For bookkeeping in Thailand, each company must maintain and present its account book, including:

  1. Financial Statements: Comprising the income statement and balance sheet, prepared annually.
  2. Annual Tax Return (PND 50): Includes VAT and withholding tax returns.
  3. Legitimate Receipts: Necessary for tax-deductible expenses, containing specific details like the seller’s tax identification number and transaction information. According to Thai law, a receipt is valid if it includes the following details:
    • The seller’s tax identification number
    • The seller’s name
    • The serial numbers of the book and receipt
    • The date the receipt was issued
    • The amount of payment received
    • The type, description, quantity, and price of the goods

Fiscal year and obligations for bookkeeping services 

For bookkeeping in Thailand, the fiscal year usually spans 12 months, beginning on January 1 and ending on December 31. However, companies can select their own fiscal year period, which must be consistently followed unless changed with approval from the Revenue Department.

Corporations must have a qualified accountant to maintain accurate financial records in Thai or with a Thai translation. Financial statements must be annually approved by the general assembly and submitted to the Department of Business Development (DBD) and the Revenue Department for tax purposes. Companies must pay corporation tax, VAT, withholding tax, and social contributions, and keep all accounts and documents at the registered office for at least five years.

How to make your annual and monthly declarations for your company?

Bookkeeping in Thailand requires for your company’s annual and monthly declarations of the accounts. The information provided below are the bookkeeping procedures and documents needed for these declarations.

Annual Declarations:

  • Approve your company’s annual accounts each year after they have been certified by an accountant.
  • Hold an extraordinary general meeting to approve the annual accounts within four months of the end of the fiscal year (by April 30).
  • File the approved financial statements with the Department of Business Development (DBD) within one month of the meeting, and no later than May 27.
  • Submit the audited and approved financial statements, along with the corporate income tax return, to the Revenue Department using the “PND 50” form within 150 days of the fiscal year’s end, and no later than May 27.
  • File the semi-annual corporate tax return using the “PND 51” form to the Revenue Department within two months after the first semester of the accounting year (by August 31).

Monthly Declarations:

  • Withholding Tax Declarations: Must be submitted within the first 7 days of the month following the payment.
    • PND 1: For taxes withheld on employee salaries.
    • PND 2: For taxes withheld on interest and dividends paid to beneficiaries.
    • PND 53: For taxes withheld from vendors who are legal entities.
    • PND 3: For taxes withheld on payments to individual sellers.
  • VAT Declarations:
    • PP 36: Must be filed within the first 7 days of the following month for payments to foreign suppliers.
    • PP 30: Must be filed within the first 15 days of the following month, summarizing VAT collected and deductible.
  • Social Contribution Declarations:
    • SSO 1-10: Must be filed with the Social Security Office (SSO) within the first 15 days of the following month, detailing all social security contributions from the previous month.

For more information or personalized consultation, contact Benoit & Partners. We are here to provide and assist you with all your bookkeeping information and needs to ensure your compliance with Thai regulations.