Accounting in Thailand.

An Introduction.

Accounting in Thailand.

A Thai company’s financial records are there to provide a true, fair and accurate account of its financial state. 

Companies in Thailand must be registered and they must adhere to strict accounting requirements and standards as per the Thai Accounting Standards and Accounting Act. 

Accounting in Thailand and The Accounting Standards of Thailand.

TFRS refers to the Thailand Financial Reporting Standards For accounting.

These are essentially a set of rules that each and every business must follow when it prepares Company financial statements when the company itself is a public accountable entity.

Any non-publicly accountable entity  NPAE can choose whether they apply the Thai financial reporting standards or not.

With regard to small and medium sized companies there are two accounting standards that may be applied.

The first. The Thailand Financial Reporting Standards.

The second. The Thailand Financial Reporting Standards for Non Publicly Accountable Entities.

Foreign businesses, however, can also apply the International Financial Reporting Standards. 

Non publicly accountable entities, what are they? 

If the company Itself is not an entity that has a primary business interest, Or holds assets for any fiduciary or broader group, such as insurance companies, mutual funds, securities and financial institutions. Or, is not a public company or does not have any equity investment or bonds that are traded in the public market or domestic/ foreign Stock Exchange then the company is not a publicly accountable entity.

Requirements for accounting compliance in Thailand. 

The accounting and financial year for accounting in Thailand runs from the 1st of January through to the 31st of December yearly. 

Each company has a requirement for bookkeeping. All company accounts must be an accurate assessment of the accounts and expenses of the company. These should adhere to the accounting standards of Thailand as agreed per the Institute of Certified Accountants and Auditors within Thailand. 

Companies will have to prepare and file Liabilities and Asset overviews of the company together with balance sheets. These must include all loss and profit accounts which have to be submitted at the end of the financial year period. 

Companies will also be required to keep any relevant documentation with regards to their finances and accounts for a period of five years. 

The records that must be kept for accounting in Thailand purposes are as follows,

All bank statements and check records.

Internal and external audit reports.

Credit and Debit Card Transaction receipts.

Balance sheets

Profit and loss account statements.

Any payment or receipt records

Any salaries?

An accounting journal.

All accounts statements.

All financial documents for accounting in Thailand are to be written in Thai, in ink or printed.

Companies are required to provide their financial statements annually.

An annual report will outline the financial performance of the company or its business activities. These are known as financial statements for accounting in Thailand purposes.

These are important documents as government agencies together with accountants and audit companies can check and audit the financial statements to ensure accuracy for finance and taxation. Therefore, it is essential to have the assistance of a good business accountant.

The financial statements of a company must include.

Any changes to equity.

Notes with regard to financial statements.

A cash flow statement.

A statement with regards to the company’s financial position.

And importantly, the loss and profit statement for the company.

These financial statement must also include.

Additional information with regard to balance sheets, Statements of Income, Changes with regards to equity and cash flow. It must include the company’s criteria which it has applied to the preparation of financial statements together with a description of the company’s accounting policies. 

The annual auditing of financial statements.

Whether the company has traded within the financial year or not. The company is required to prepare financial statements, after which these statements must be audited and certified by an independent auditor to certify the financial year end closing statements themselves.

The opinion of the auditor is required for the submission of financial statements and tax returns and the auditor must provide their opinion on the company’s financial statement.

Within a four month period of the end of the financial year there should be a shareholders meeting with directors and shareholders of any public and private limited company to approve the audited documents for submission.

Within one month of that meeting, and once the documents are approved then these must be submitted along with any supporting evidence or documents. Including that of the shareholders to the Revenue Departments Commercial Registrar.

Penalties for non-compliance can be as high as 200,000.THB.

Balance sheets for public limited companies must be published in newspapers for at least a one day period within the month that the shareholders approved the accounts at the meeting.

Annual reports that are required.

Companies that are both public limited and private are required to provide the documents below at the end of the annual accounting period.

Profit and loss account statements

The company’s business types

The annual meeting duration

Company balance sheets

A list of all company shareholders and directors

The name of the company.

The audited financial statements as approved

Again, these documents must be prepared in Thai.

During the financial year, the accountants for the company will also update company records with regards to shareholders, directors, staff salaries, et cetera and these will be reported to the various government agencies that have a requirement to be kept updated.

Your accountant may also arrange for the payment of your staff Salary, Social Security payments SSO and any withholding tax. VAT registration and compliance for any company with a turnover of 1.8 million THB and above. VAT submissions will also need to be submitted on a monthly basis.

Conclusion

As you can see, accounting has a lot of elements to it with regards to companies and to keep them regulated and compliant. Therefore it is essential to have a good business accountant behind your company.

At Isaan lawyers, we can offer such services to ensure that you are compliant and remain legal within Thailand. We have in-house accountants to assist the businesses we represent.

This overview does not replace the advice of a certified Accountant in Thailand and is for informational purposes only. Specific advice with regards to your business should be professionally sought.

Read more about accounting in Thailand services Accounting services in Korat – Isaan Lawyers – Attorneys and Lawyers in Thailand

If you are in need of accounting and business services. Please do not hesitate to visit our website at www. Isaanlawyers.com

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