NGO – Tax Guidance for NGO, Foundation and Association in Thailand
NGO which has been registered in Thailand (except NGO or Public Charitable Institutions, Clinics and Educational Institutions under Section 47 (7) (b) of the Revenue Code) must file its Income Tax Return – PND.55 Form (under Section 68 and Section 69 of the Revenue Code.
Taxable income and tax calculation method
- Assessable Income under Section 40 (8) of The Revenue Code is imposed and calculated by using gross income with the applicable tax rate at 2 % of gross income (before deduction of any expenditure).
- Other assessable income is imposed and calculated with the applicable tax rate at 10% of gross of income (before deduction of any expenditure).
Exempt Income
Under Section 65 bis (13); A foundation or association which carries on business that produces revenue shall not include registration fees or maintenance fees from members, or cash or assets received as donations or gifts, whichever will not impose and calculate as a tax.
Penalty and Surcharge:
- Penalty will be charged at rate of Baht 2,000 when submission of Income Tax Return – PND.55 was delayed.
- Surcharge: the applicable rate is 1.5% for each month of delayed submission.
Deadline
– Income Tax Return – PND.55 must be filed within 150 days after closing date was ended.
NGOs intending to operate in Thailand click here
Below is Sample of auditor report for NGO, Foundations and Associations in ThailandAUDITOR’S REPORTTo ……………………………………………………… We have audited the balance sheet of …………………………………………………………….. as at …………………… the related statements of receipt and expenditures and statement of changes in capital for the period since ……………….. to ………………………. These financial statements are the responsibility of the ………………………… Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. These standards require us to plan and perform the audit task to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of …………………………………… for the project of …………………………… as at …………………….. the receipts and expenditures for the period since ………………….. to …………………… in conformity with generally accepted accounting principles. Since the …………………………………….. that aims for ………………………………. without the purpose of gaining profit, the recording and presentation of financial statement had been adapted for its proper situation as a non-profit organization. PRASERT POOTHONG Bangkok
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