Setting up a Thai company is a real challenge for foreign investors. However, it is possible with the right help of J&E Concierge Pattaya. Our experts are beside you for a company registration in Pattaya. We can send on your behalf all the necessary documentation, deal with Thai authorities, and do all it takes until you succeed to register your company in Pattaya. But what happens after formalizing your business? We are here to support you after company registration with the best accounting services in Pattaya.

As in many other countries, Thailand requires that companies registered in Thailand should meet the accounting requirements to stay compliant. Managing accounting in Thailand requires periodically completing complex processes, depending on the type of entity. Do not be scared! Although at first sight, it seems to be very difficult, we will make it easier for you and your company.

In this article, we will discuss accounting in Thailand and we will reveal the most important aspects related to it.  We will take the process of accounting in Thailand step by step. So, you will know all you have to do to deal with accounting correctly and easily.

Once you complete your company registration in Pattaya, you can officially run your business smoothly. At the same time, there are several things to consider before it. The most important one is Thailand’s accounting.

Staying compliant with the accounting laws represents a serious problem for new foreign investors. We are offering complete accounting services in Pattaya and want to help you better understand Thai accounting requirements and procedures. So, we will provide you with a detailed overview of Thailand’s accounting.

Accounting is a wide area of taxes and documentation that puts many business owners in difficulty. Fortunately, our accounting services in Pattaya will take care of your monthly responsibilities such as VAT and withholding tax filing, bookkeeping, and others. Take a look below at the most important steps to take after registering your Thai company in Pattaya. 

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Every company in Thailand must have a business bank account. So, if your registration is over, take immediately the next stop to the bank and open a Thai bank account for your company. Our advice is to choose an entry-level business bank account that has a less expensive account fee. A bank account is both necessary and helpful. It will help you manage your cash flow and maintain your finances safely and well-organized.

Read more about tax accounting for foreign companies and individuals

VAT is the acronym for Value-added tax. Every country applies it differently, according to its law. To be more specific, VAT is a consumption tax for goods and services that presents you as a licensed service provider. Therefore, registering for VAT not only will make your clients trust your business, but it will also keep you compliant in front of the law.

Although it is considered a costly tax, VAT brings many benefits to a Thai company. After you become eligible for paying VAT, you have the possibility to apply for tenders and contracts. Also, you can claim back for some taxes, such as the tax paid for suppliers.

What makes you eligible for paying VAT? As we previously mentioned, you can register your company for VAT only if it is eligible for it. Thai law requires VAT registration only when companies’ total value of turnover reaches R1 million over a period of 12 months. You have the possibility to register your company for VAT before it reaches that value.

The process of VAT registration is quite simple. The owner of the company needs to submit the VAT 101  registration form to a SARS branch within 21 days of exceeding the R1 million THB. In a short time after registration, you will be required to add 15% VAT to your service or product invoices.

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Bookkeeping is very helpful when you want to claim back for certain expenses. There are tracked invoices and receipts that can represent proof of claims. Not having it may cost you time and money. So, be careful and track your finances correctly and on time.

The Institute of Certified Accountants and Auditors of Thailand developed the Thai Accounting Standards which ask all the Thai registered in Thailand to draft their accounts accordingly. The Bookkeeping should reflect a true image of all the company’s expenses and assets. Therefore, all its paperwork has to be correct and up-to-date.

There are many documents, records, accounts, and statements a company must have recorded in the Thai language. They include:

• Accounting journal
• Statement of accounts
• Records of payment
• Receipts
• Profit statements
• Loss statements
• Balance sheets
• Records of electronic funds transfers
• Credit card transactions
• Bank statements
• Cheque records
• Internal or external audit reports

All these documents can be prepared once a year or monthly as the business owner demands. 

The balance sheet.

This document is an overview of the company’s profit and loss. It must be prepared and filed at the end of the financial year. The financial year usually lasts 12 months and ends on the 31st of December. The Balance sheet consists of assets and liabilities records. All these records must be deposited at the company’s registered address for approximately 5 years, as the Revenue Department requires.

Read more about Tax and accounting in Thailand

So, having a Thai company is a profitable business. Here, businesses are developing very fast. Once you discover how to manage your business, you will be worry-free about all your responsibilities. But, until then you have to look for solutions and learn from experienced people how to do it.

Whether you decide to do it by yourself or hire a company for help, you have to inform yourself about what tax requirements you need to follow to stay legal. Most of them are different in terms of value and deadlines. Also, you have to consider their preparation. At this point, to be at the right time and be sure they are correct 100%, have into consideration our accounting team.

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These are the taxes you have to prepare and pay annually:

1. The Corporate Tax (CIT)

The corporate tax applies to all Thai companies, whether based in Thailand or not. The difference between them is that incorporated businesses pay corporate tax on their worldwide income, while the companies incorporated abroad pay tax only for the profits gained inside the country. CIT’s standard rate is 20%.

Corporate Income Tax filing must be done within 150 days from the last day of the accounting period. If you fail to file this file or you are late for it, you will be penalized.

2. Value-added tax (VAT)

VAT is added to all Thai companies that commercialize goods and provide services if their annual income is more than 1.8 million BAHT. Generally, the VAT rate is 10%, but it has been reduced to 7% until September 2023.