Fine rate – Late submission of financial statement in Thailand
(For company limited / public company / limited partnership / joint venture)
Under Accounting Act B.E. 2543 Section 11 Paragraph 1, the company will be responsible to pay for the penalty upon late submission of Financial Statements to the government department which this fault has mistaken to the company which needs to pay penalty of not exceeding Baht 50,000 and the position of Managing Director still has the responsibility on penalty for another Baht 50,000.
In the usual practice, the company can submit the Financial Statements and pay the penalty at the Department of Business Development (DBD) according to the below rates (since year 2012 and onward):
Penalty Rate
1.Penalty rate for late submission not exceeding 2 months.
| Penalty Rate | ||||
| No. | Type of person having duty to keep account | Person having duty to keep account | Managing Director/Managing Partner | Total |
| 1 | Limited Partnership | 1,000 | 1,000 | 2,000 |
| 2 | Company Limited | 1,000 | 1,000 | 2,000 |
| 3 | Foreign Company Limited | 2,000 | 2,000 | 4,000 |
| 4 | Public Company Limited | 2,000 | 2,000 | 4,000 |
| 5 | Joint Venture | 2,000 | – | 2,000 |
2. Penalty rate for late submission over than 2 months but not exceeding 4 months.
| Penalty Rate | ||||
| No | Type of person having duty to keep account | Person having duty to keep account | Managing Director/Managing Partner | Total |
| 1 | Limited Partnership | 4,000 | 4,000 | 8,000 |
| 2 | Company Limited | 4,000 | 4,000 | 8,000 |
| 3 | Foreign Company Limited | 24,000 | 24,000 | 48,000 |
| 4 | Public Company Limited | 24,000 | 24,000 | 48,000 |
| 5 | Joint Venture | 24,000 | – | 24,000 |
3. Penalty for late submission over than 4 months OR not yet submission of previous financial statement
| Penalty Rate | ||||
| No | Type of person having duty to keep account | Person having duty to keep account | Managing Director/Managing Partner | Total |
| 1 | Limited Partnership | 6,000 | 6,000 | 12,000 |
| 2 | Company Limited | 6,000 | 6,000 | 12,000 |
| 3 | Foreign Company Limited | 36,000 | 36,000 | 72,000 |
| 4 | Public Company Limited | 36,000 | 36,000 | 72,000 |
| 5 | Joint Venture | 36,000 | – | 36,000 |
Anyway, if the company did not take further actions regarding its Financial Statements and fine payment, the Royal Thai Police Office will issue the Summons and send to the company address to invite the Managing Director for investigation the within specified date on the Summons letter. Normally Police will request the company to pay penalty to DBD office then bring the receipt for the penalty’s payment to show for close the case (not send to court).
Summons issuing is two times. In case the company will not contact back, police will send the case to court.
Remark:
- After the fine payment, the company has responsibility to submit financial statement and file its tax to the Revenue Department also.
- AT the Revenue Department, there’s still have the penalty for corporate income tax (CIT) if did not submit Financial Statements with CIT for Baht 4,000 (late submission over 7 days), and Baht 3,000 (late submission within 1 – 7 days) which is not included tax’s surcharge at rate 1.5% per month and also maybe there’s still have fault from the case of late AGM.
Other articles which related with financial statement submission
Article – submission financial statement in Thailand, procedure, requirement, place and channel. – Click here
Article – Fine rate or Penalty rate for late submit the financial statement over than the specific period – (started using from year 2012) – Click here
Article – Police Summons (Royal Thai Police) – For the case of do not submit the financial statements. – Click here
Article – Comparing the rate of penalty charges / tax fine, punishment under the act of Registered partnership, Limited partnership, Company limited (For the case – do not submit the shareholders list within 14 days since the date of Annual Ordinary Shareholders Meeting; quoted to the number of 19th in the Article No. 1179 2nd paragraph)
Article – Annual Ordinary Shareholder Meeting – regulation and procedures – Click here
Article – Defunct company or unoccupied company means the company that the Registrar crosses the company name from the register so as to the company status will be close down or no longer exist since it has been announced in the Government Gazette. – Click here
Article -Dormant Company, Shelf company (sleep company) in Thailand – Click here
Q&A
Q1: Our office just receives a First Summons from Police (Royal Thai Police), asking the directors of ..(Our)… Company to meet on 28/04/2018. Wish to ask your opinion that should we send someone to explain with Police Dept that we never start any business, and we can’t even contact with their directors so far, & what will happen by then?
Panwa: Of course you should send someone to meet the police as requested follow their Summons (notice) But the reason “your company never start any business and can’t contact with the director” is not appropriate due to they want you to clean up and filing the late of financial statement and also pay the penalty, anyway you should send someone with authorization letter (issued by your director with company’s affidavit and copy of ID card or Passport) to meet and negotiate with the police first and then discuss with them(police) how to solve it, actually they will ask you the time when you can clean up and submission.
Anyway, I can brief you a rough that police did in the past; they treated to one of my clients who did not file the financial statement of year 2009 (2542) for your further consideration.
around March 2018, police will issue you the first notice.
around April 2018, police will issue you the second notice (case of ignore the first notice).
within end of May 2018, the case will be submitted to the court proceedings (case of ignore the second notice).
when already judge by court the legal age of your guilt is one year that’s mean during the unexpired period of legal age your director may be arrest when coming to Thailand at air port or anywhere in Kingdom of Thailand.
Q2: I just got the letter issued by DBD to remind me for the late submission of the financial statement of year ended Dec 31, 2017, which actually I never file anything since incorporated in year 2016, please let me know the provision cost including your fee. (Obtaining dated July 12, 2018)
Panwa: I assume that your company is non-VAT registration, and today is July 30, 2018, which is not over 2 months of late submission.
| Details | Penalty | Service Fee | ||
| Year 2017 | ||||
| – Penalty for late submission at DBD | 2,000 | – 0 – | ||
| – Penalty for late submission at RD for yearly CIT | 4,000 | – 0 – | ||
| – Penalty for late submission at RD for half-year CIT | 2,000 | – 0 – | ||
| – Service fee for Accounting, Auditing and CIT | 15,000 | |||
| Year 2016 | ||||
| – Penalty for late submission at DBD | – 0 – | – 0 – | ||
| – Penalty for late submission at RD for yearly CIT | – 0 – | – 0 – | ||
| – Penalty for late submission at RD for half-year CIT | – 0 – | – 0 – | ||
| – Service fee for Accounting, Auditing and CIT | 15,000 | |||
| Total Provision Cost | 8,000 | 30,000 |