Accounting Period Thailand
Taxable person who is liable to tax from net profit shall calculate net profit arising from revenues of a business or consequence of a business carried on in an accounting period and deducting all expenses in accordance with the conditions prescribed in Section 65 bis and 65 ter of the Revenue Code, whereas the Revenue Code prescribe the accounting period as below:
1. General accounting period as prescribed under Section 65 of the Revenue Code for Corporate Income Tax computation shall be 12 months and shall be started and ended at any date.
2. Accounting period may be less than 12 months for the cases accepted by law which consist of below cases:
A. Juristic company or limited partnership who has just been set up can choose the period from the date of setting up (registration) to any date as the first accounting period but the following period shall be 12 months.
B. Juristic company or limited partnership may apply to change the ending date of accounting period under the approval of Director of Revenue Department , whereas the first accounting period to be allowed shall be less than 12 months.
C. Juristic company or limited partnership who is dissolved shall deem the dissolution date that accepted by registrar as the ending date of accounting period.
D. Juristic company or limited partnership who are merged shall deemed that such juristic company and limited partnership are dissolved therefore the accounting period of the merged juristic entities shall be under item C above which may be less than 12 months.
In case that a company is dissolved but is not complete for “registration of liquidation” and has net profit, such profit shall be subject to corporate income tax due to Civil and Commercial law prescribed that a company shall still be juristic person until completion for “registration of liquidation”.
3. Accounting period over 12 months: the accounting period may be extended longer than 12 months for the case that juristic company or limited partnership is dissolved but liquidator and manager are unable to file tax return within 150 days from the last date of accounting period, and have submitted application to Director of Revenue Department within 30 days from the date that the company’s dissolution has been accepted by registrar, in this case, the Director of Revenue Department may approve the extension of period so this accounting period may be over 12 months.
Q&A
Q1: We registered our company (in Thailand) in April 2010, till now (January 2011) We did not have any income yet, only the loss,
– We are liable to report to the Revenue Department for the first year?
Panwa:
- CIT (corporate income tax) for your limited partnership have to file within 150 days from the end of accounting period, and also need to enclose the audited financial statement.
- Withholding tax will be filed within 7 days of the following month. (Needed to file only in the case of having withheld tax).
- VAT will be filed within 15 days of the following month (either have transaction or not, still need to file the VAT form although no transaction) thus, if you did not apply for VAT, there is no need to file its form.
- Half year tax must be filed within 2 months from the middle of accounting period, for your case is the first year is exempted by law (no need to do filing).
- *** Anyway you can learn more information about “Tax Structure in Thailand” at our website at: http://www.panwagroup.com/knowledeaccountingtax.htm
Q2: Is the accounting period can be ended after December 2010 since the company had registered the accounting period in December of every year?
Panwa:
- Accounting period is not allowed to be over than 12 months, for you case the company was set up on April 2010 so you can extend the accounting period up to the date before the incorporation date of your LTD, so the date of closing (liquidation) company can be extended up to that date also.
- Anyway if you follow our recommendation to extend the accounting period to be date before incorporation date, please be informed that some kind of registered document (incorporated documents) may be needed to re-apply for changing such as Tax ID card, VAT registration (PP.01), from my experience no need to re-apply for changing now.