Accounting & Tax
Accounting Standards
- Businesses in Thailand must follow Thai Financial Reporting Standards (TFRS), aligned with International Financial Reporting Standards (IFRS).
- Small and medium enterprises (SMEs) may follow specific simplified accounting standards.
Bookkeeping
- Language: All accounting records must be maintained in Thai or with Thai translations.
- Currency: Records must be in Thai Baht unless approval is granted for another currency.
- Records: Includes journals, ledgers, financial statements, and supporting documents.
- Retention Period: At least 5 years.
Annual Financial Statements
- Financial statements must be prepared annually and audited by a licensed Thai auditor.
- The documents include:
Statement of Financial Position (Balance Sheet)- Statement of Comprehensive Income
- Statement of Cash Flows
- Notes to Financial Statements
- Statement of Comprehensive Income
- Statement of Cash Flows
- Notes to Financial Statements
Tax System in Thailand
Corporate Income Tax (CIT)
- Rate: 20% for most companies.
- SME Concessions:
- 0% on the first 300,000 THB of net profit.
- 15% on profits between 300,001 and 3,000,000 THB.
- Tax Filing:
- Annual: Within 150 days of the fiscal year-end.
- Half-year: Estimated return (Form CIT 51) within 2 months of the first 6 months.
- 0% on the first 300,000 THB of net profit.
- 15% on profits between 300,001 and 3,000,000 THB.
- Annual: Within 150 days of the fiscal year-end.
- Half-year: Estimated return (Form CIT 51) within 2 months of the first 6 months.
Withholding Tax (WHT)
- Applies to payments such as dividends, interest, and royalties.
- Rates:
- Domestic payments: Typically 1%–5%.
- Payments to non-residents: 5%–15%, subject to tax treaties.
- Domestic payments: Typically 1%–5%.
- Payments to non-residents: 5%–15%, subject to tax treaties.
Value-Added Tax (VAT)
- Rate: 7% (temporarily reduced; standard rate is 10%).
- Threshold: Mandatory for businesses with annual revenue exceeding 1.8 million THB.
- Filing: Monthly VAT returns (Form VAT 30).
Personal Income Tax (PIT)
- Applies to individuals earning income in Thailand.
- Rates:
- Progressive tax rates from 5% to 35%.
- Filing:
- Annual tax return by March 31 of the following year.
- Progressive tax rates from 5% to 35%.
- Annual tax return by March 31 of the following year.