Accounting, Tax, Audit & Payroll

What a Thai company owes the authorities from day one

Accounting obligations start on the date of registration, not on the date of the first sale. For a Thai limited company, the Accounting Act B.E. 2543 requires books from registration and a qualified bookkeeper. Annual financial statements need an independent audit and filing with DBD even without trading. Other entity types can have different audit rules; do not apply the limited-company requirements to every registered partnership.

Tax obligations run on a separate calendar from company law. Check payments subject to withholding, registered VAT status, accounting-period exceptions and social-security coverage before selecting returns. A payroll record does not itself establish every employee’s contribution obligation.

Most penalties we are asked to fix are not the result of aggressive positions on tax. They come from missed dates, from books that were never opened for a dormant entity, or from a director who assumed the corporate agent who registered the company was also filing its returns.

The compliance calendar in one table

For a Thai limited company, audited statements, the annual general meeting and the shareholder-list submission have separate legal deadlines. Confirm each with DBD rather than treating the shareholder list as a single filing alongside the statements. We work backwards from those dates: audit fieldwork is scheduled so that the meeting, the DBD filing and the PND.50 return do not collide in the same fortnight.

Electronic extensions, public holidays and special announcements can change a filing date. Check the Revenue Department calendar for the form and period concerned; a portal problem does not automatically excuse late submission.

What our monthly engagement actually covers

• Bookkeeping in line with TFRS for NPAEs, with a chart of accounts built for the client's own reporting
• Preparation and submission of PND.1, PND.3, PND.53 and PP.30, with proof of filing returned to the client
• Social security registration and monthly contribution filing for Thai and foreign employees
• Payroll processing, payslips and withholding certificates for staff
• Bank and VAT reconciliations, so the input and output tax positions match the ledger
• A monthly management pack: trial balance, profit and loss, balance sheet and a short commentary
• Deadline tracking with reminders before, not after, each filing date

1. Documents collected: Invoices, receipts, bank statements and payroll changes are uploaded in the first week of the following month.
2. Books posted: Entries are recorded and coded, and any missing tax invoice is queried immediately rather than at year end.
3. Reconciliations: Bank, VAT and withholding positions are reconciled before any return is prepared.
4. Returns prepared and approved: Draft returns go to the client for approval with the tax payable clearly stated.
5. Filing and proof: Returns are submitted and the filing receipts are returned to the client's file.
6. Management pack issued: The monthly reporting pack is delivered with commentary on anything unusual.

Outsourcing or hiring: compare responsibility and document flow

The break-even point is about volume and the need for same-day internal reporting, not about company size in headcount. Groups often run a hybrid: an internal finance person who owns approvals and cash, with the statutory bookkeeping, filings and audit coordination outsourced.

For foreign-owned entities there is a second factor. Work permit and BOI reporting have to stay consistent with payroll and the financial statements, so the same team should see both.

Tax planning that stays inside the rules

Legitimate tax planning in Thailand is mostly about documentation and timing. Check business purpose, acceptable supporting evidence and the correct accounting period for each expense. Corporate-tax deductions and input-VAT credits have different evidence rules; a full tax invoice is not the only possible support for every business expense. Where a deduction is available — small-company rates, approved training, certain capital allowances — it has to be claimed on evidence that would survive a Revenue Department review.

We do not structure transactions whose only purpose is to reduce tax, and we do not accept instructions to post expenses without underlying documents. Where a client asks for a position that is arguable but not settled, we set out the risk in writing and let the client decide with full information.

The half-year PND.51 return deserves particular attention. An estimate that understates the full-year profit beyond the statutory tolerance attracts a surcharge, so mid-year forecasting is part of the engagement rather than an extra.

• Keep a compliant tax invoice for every input VAT claim, including the buyer's tax ID and address
• Record director expenses through the company only where they are genuinely business expenses
• Reconcile withholding certificates issued and received before the annual return
• Review the half-year profit estimate against actual results before filing PND.51
• Document related-party pricing where transactions cross a border

Audit, and what auditors ask for first

Every registered company in Thailand must have its annual financial statements audited by a licensed auditor, regardless of turnover, and a dormant company is no exception. The auditor is independent of the bookkeeper, which is why we coordinate the audit rather than sign it ourselves.

Fieldwork goes fastest when four things are ready: bank confirmations, a fixed-asset register agreeing to the ledger, an aged receivables and payables listing, and supporting contracts for material balances. We assemble these during the year instead of reconstructing them in the final month.

Common mistakes and how we avoid them

More questions we are asked

When must a new company start keeping accounts?

From the date of incorporation. The Accounting Act requires a registered juristic person to keep books, appoint a qualified bookkeeper and have annual financial statements audited, even where no trading has begun.

Does a company with no revenue still file?

Yes. A dormant entity files audited financial statements with the Department of Business Development and an annual corporate income tax return, and remains liable for penalties if it does not.

When is VAT registration compulsory?

For activities subject to VAT, check the Revenue Department’s threshold, registration timing and exemptions. Voluntary registration has its own conditions. VAT registration is neither a work permit nor a guarantee that an immigration or employment application qualifies.

How much social security does the employer pay?

The employer contributes a percentage of wages within the statutory wage band, matched by the employee, with workmen's compensation charged separately at a rate set by industry risk. The exact figures follow the current ministerial announcements, which we apply each month.

What does the half-year PND.51 return involve?

It is an estimated corporate income tax filing for the first six months, due within two months of the end of that half-year. If the estimate understates the full-year profit by more than the tolerance in the Revenue Code, a surcharge applies to the shortfall.

Can you take over books that are behind?

Yes. We review what has been filed, quantify the outstanding returns and surcharges, and file the backlog in the order that limits penalties. Transparency about past filings at the start is what makes this predictable.

Do foreign directors and employees change the payroll work?

They add work permit, visa and, in some cases, BOI reporting that must stay consistent with payroll records and the financial statements. We keep those records aligned rather than treating them as separate files.

Is e-Tax Invoice required for our company?

Do not infer a universal e-Tax Invoice obligation from turnover alone. Check the Revenue Department’s current e-Tax Invoice and e-Receipt rules, eligible channels and any measure specific to the business. Confirm system and registration requirements before changing invoicing.

Who signs off the audit?

An appropriately licensed auditor who must meet the applicable independence requirements. Separate preparation of accounts from audit judgement, and ask who will sign and how conflicts and self-review risks are addressed before appointment.

What do you need to give a fee quotation?

Monthly transaction volume, headcount, VAT status, the accounting year end and whether there is any backlog. Send a sample month of records as well. Ask our team for a quotation, with bookkeeping, payroll, backlog and independent audit work distinguished.