Foreign businessmen who intend to open a company in Thailand should be familiar with the local accounting legislation, which designates the way in which various areas referring to accounting can be performed and registered in the company.
Our team of accountants in Thailand assists all those interested in professional accountancy services.
Accounting activities can be carried out by professionals hired as employees of the company, but it is important to know that there is a trend in outsourcing accounting services to specialized companies or to accounting specialists, thus reducing the level of costs of the business.
Working with an accountant in Thailand in an outsourced manner can provide multiple advantages for the business, among the most important being significant cost savings (as opposed to having an in-house accountant or bookkeeper).
Investors who need to receive more details about this matter can address our team of Thai company formation specialists.
|Bookkeeping services||Complete records of the company's financial transactions, up to date accounts payable and accounts receivable
|Payroll in Thailand
|Calculating payroll, issuing payslips, making the payments to the employees as well as the
social security contribution payments
|Issuing invoices, tracking issued invoices, invoice management|
Managing cash payments received from customers, managing cash payments made by the company
|Reporting||Our accountant in Thailand prepares the company's annual financial statements for the mandatory
reporting with the authorities
Company performance analysis based on profitability ratios and other relevant financial ratios
Services suitable for companies involved in money laundering investigations or other types of criminal proceedings
|Tax compliance||Complete services for companies in Thailand that wish to ensure their tax compliance, annual tax filing and reporting|
|VAT compliance and reporting||VAT registration according to the applicable threshold, VAT filing
and payment as needed
|Audit offered by our accountant in Thailand||Audit for the annual financial statements of public and private companies, according to the requirements of the
Department of Business Development
|Property financial matters||Real property tax compliance according to the nature of the land or building (commercial land, residential land, etc.)|
|Complete information on and assistance for compliance with the Thai Accounting Standards for companies|
|Tax authority assistance||Representation in front of the Thai Revenue Department, if required and relevant for the matters concerning the client|
|Support for voluntary dissolution||Assistance in preparing the liquidation of the company (converting the assets to cash, settling the obligations with the creditors, etc.)|
Services for foreign companies offered by our
|Information on foreign company taxation in Thailand, foreign income treatment, double tax treaties and more|
Table of Contents
General accounting services in Thailand
Our team of accountants in Thailand can provide a wide area of accounting services, performed in accordance with the International Financial Reporting Standards. Some of the most common accounting services required when you open a company in Thailand are the following:
- payroll services – a monthly procedure referring to the salaries of the employees and the taxes incurred for their income;
- personal income tax reporting: for entrepreneurs who derive income from a Thai source and with to know how they are required to report it;
- submit a monthly Value Added Tax (VAT) report for sales and other business transactions carried out by the company; • a team of accountants in Thailand can also assist with the VAT registration requirements when the company exceeds the turnover for registration on any given annual tax period;
- reports: monthly report for the withholding tax at the Revenue Department; annual submissions and the filing of the required documents and tax payments;
- bookkeeping services, performed on a monthly basis; bookkeeping refers to the record of all financial transactions incurred by the company;
- audit – according to local legislation, the audit is performed on a yearly basis; the company’s management is required to file an audit report at several tax institutions, including the Commercial Registration Department.
When choosing to work with a team of accountants in Thailand, clients have access to all of these services, or only a part thereof, as agreed in the selected package.
Investors should note that the accounting, auditing, and reporting requirements differ according to the type and size of the business, with public companies being subject to more stringent requirements.
In case you need any of the services described above in another country, for example in Malta, we can put you in contact with our partner accounting firm in Malta.
An accountant in Thailand is a certified professional who has undergone training and has diplomas and certifications.
The profession is regulated through a special legal act and the authority in charge of regulating the professionals in the field is the Accounting Professions Regulatory Commission, with the help of the Federation of Accounting Professionals.
Both accountants and bookkeepers in Thailand need to obtain licenses, according to the Accounting Professions Act. Those who fail to observe the ongoing requirements can be subject to warnings, probation, or even suspensions from their activity.
We invite you to watch a video about our services:
Bookkeeping services offered by our accountants in Thailand
Our company registration specialists in Thailand can provide businesses withbookkeeping services, tailored in accordance with the size of the company. General bookkeeping services can refer to the registration and processing of the following types of documents:
- accounts payable and receivables;
- maintenance of the general ledger;
- processing payroll documents;
- tax filing.
Bookkeeping services are available for both newly formed companies in Thailand, and also for shelf companies, which are ready-made businesses that have to comply with the general specifications imposed on all types of companies.
Our experts in company registration in Thailand can give you more details about the advantages of ready-made companies. Setting up a new company in Thailand is also another way of doing business in this country and our incorporation agents can help you.
Accounting and auditing requirements in Thailand
The Accounting Act sets forth the requirements for all types of business entities in the country, including partnerships, joint ventures, public and private limited companies, and foreign companies that conduct business in Thailand.
Some of the key issues are summarized below by our team:
- Business entities must prepare their annual financial statements in accordance with the Thai Financial Reporting Standards;
- The annual financial statements are audited by a certified public accountant, as per the Thai Standards on Auditing;
- Legal entities that are not subject to auditing include registered partnerships with total revenue, assets and capital under a prescribed threshold.
Working with a team of accredited accountants in Thailand, such as our experts, will allow investors to rest assured that they observe all of the abovementioned requirements, as well as any other subsequent changes to the accounting and reporting laws that may enter into force.
Taxation in Thailand
Tax and reporting obligations are among the most important issues taken into account by local and foreign investors.
An accountant in Thailand from our team can give you more details about the main taxes for corporations, as well as about individual taxation. The most important ones are summarized below:
- 20% corporate income tax, with resident companies being taxed on their worldwide income; lower, progressive rates of 0% or 15% can be available to small and medium limited companies;
- 10% withholding tax on dividend payments to another Thai company or non-resident company; this payment made to a non-resident can be reduced under a tax treaty;
- 7% value-added tax (reduced from 10% until September 2023) and a 0% rate for certain types of rated goods and services;
- 5% social security contribution made by the employer (calculated as a percentage of the monthly salary); a certain cap applies to this contribution.
Other rates apply in Thailand, such as the stamp duty, the inheritance or estate tax, and the real estate property tax, calculated as a percentage of the land/building appraisal value.
Thailand has signed more than 60 double tax treaties which have implications on the reduction or elimination of a tax in the case of foreign companies and/or foreign individuals who derive income from a Thai source (that would also be taxed in their country of origin).
Working with an accountant is useful for both companies and individuals who wish to remain compliant with the ongoing taxation requirements.
If you need further information on the accounting services available in this country, please contact our team of accountants in Thailand, who can offer consultations on this matter.
They can also help you open a bank account in Thailand.