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Christian with DELSK management team in Beijing June 2016

30 Jun In Beijing J&C meets Delsk and China’s leading law firm

Our German lawyer Christian has travelled to Beijing from 15th to 17th June 2016 to meet with the management team of China's leading second residents company DELSK and with our future partner law firm...
 Tax Incentive for New Startup Businesses

24 Mar Tax Incentive for New Startup Businesses

Another generous tax incentive for investors in Thailand is now launching. On 18th April 2016, Royal Decree (No. 603) was promulgated to support and promote Small and Medium Enterprises (SME) by exemp...
BOI Policy Update, Moving Towards a New Engine of Growth

24 Mar BOI Policy Update, Moving Towards a New Engine of Growth

Last Friday 11th of March 2016, the Board of Investment of Thailand BOI organized an event mainly for new Chinese investors at the beautiful venue of Dusit Thani Hotel in Silom (Bangkok). The seminar...
Regulatory Framework For Accounting in Thailand

Regulatory Framework For Accounting in Thailand

Accounting looks at the heart of each and every business. Financial Statements serve as a crucial source of information for business owners, managers, directors, business partners, investors, creditors and the Revenue Department for calculating the income tax. A modern regulatory framework for accounting is important for foreign investors. According to the World Bank’s report on the Observance of Standards and Codes, Thailand has made great progress in this field. The Thai Accounting standards closely follow international standards (IFRS). This article outlines the regulatory framework for accounting in Thailand.

The following business entities have to keep accounts according to the Thai Accounting Act, B.E. 2543 (here called the Act):

  • Registered partnerships registered under Thai law,
  • Limited Companies registered under Thai law,
  • Public Limited Companies registered under Thai law,
  • Juristic Persons registered under a foreign law if carrying on business in Thailand,
  • Joint Ventures under the Thai Revenue Code, and
  • Natural Persons or Unregistered Partnerships engaging in any kind of business in Thailand as prescribed.

Regulatory Framework For Accounting in Thailand

According to Section 20 of the Act the above business entities must have a qualified bookkeeper (see below) who keeps accounts which must show results of the operations, financial status or changes in financial status in accordance with the facts and accounting standards. According to Section 21 of the Act particulars must be entered in Thai language or accompanied by a translation into Thai language.

According to Sections 9, 10 and 11 of the Act a business must prepare and submit financial statements to the Accounts Office within five months from the day the accounts are closed, but in the case of a limited company or a public limited company registered under Thai law within one month from the day of the general meeting approving such financial statements. The books are closed (end of accounting period) twelve months after the commencement of the accounting period which begins either with the registration date (Thai company or Registered Partnerships) or the date of start of business operations (Joint Ventures and foreign companies).

Additionally, a tax return must be filed together with a balance sheet, operating account and profit and loss account, revenue and expense account on gross revenue within 150 days from the last day of the accounting period according to Section 69 of the Thai Revenue Code, B.E. 2481. These financial statements are the basis for the calculation of the Corporate Income Tax according to Section 65 of the Revenue Code. The financial statement for the Revenue Department might differ from the financial statements under the Accounting Act where prescribed by the law.

The accounting professions in Thailand and their code of ethics are governed by the Accounting Professions Act B.E. 2547 and self-regulated by the Federation of the Accounting Professions (FAP) which also issues the license for the Certified Public Accountants (CPA). The FAP is a member of the International Federation of Accountants. The Department of Business Development (DBD) of the Ministry of Commerce and the Securities Exchange Commissions (SEC) are the competent regulators for accounting and the accounting professions.

When speaking about accountants in Thailand these can be either simple book keepers or (if fulfilling additional qualifications) auditors. Accountants in Thailand must hold a bachelor’s degree in accountancy. Auditors must hold a license as Certified Public Accountants. Both types of accountants, book keepers and auditors, must be members in the FAP. Juristic Persons who offer accounting and auditing services must be registered with the FAP as well. Juristic Persons must even provide a collateral for malpractice liability.

The FAP also issues the Thai Accounting Standards which are closely based on the International Accounting Standards. The ASEAN member states are currently in the process of mutually recognizing and liberalizing the accounting professions in the wake of the ASEAN Economic Community (AEC).

Juslaws & Consult is a competent partner for all questions regarding the regulatory framework for accounting in Thailand and the whole ASEAN region. We can also effectively communicate with company headquarters and mother companies abroad as our international team speaks their language when it comes to accounting question.

Please contact our Bangkok office for further information at support@juslaws.com

 

Christian Moser, Senior Associate at Juslaws & Consult

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