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Overview of Information about Forming a Business

1. Forming a Business
2. Tax & Accounting
3. Annual Accounts

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Forming a Business in Thailand - Tax & Reporting

Tax Registration
Businesses liable for income tax must obtain a tax I.D. card and number for the company from the Revenue Department within 60 days of incorporation or start of operations. Business operators earning more than 1,200,000 Baht per annum must register for VAT with in 30 days of the date they reach 1,200,000 Baht in sales.

Reporting Requirements
Companies must keep books and follow accounting procedures specified in the Civil and Commercial Code, the Revenue Code and the Accounts Act. Documents may be prepared in any language, provided that a Thai translation is attached. All accounting entries should be written in ink, typewritten, or printed.

Specifically, Section 1206 of the Civil and Commercial Code provides rules on the accounts that should be maintained as followed:

The directors must cause true accounts to be kept:

:: Of the sums received and extended by the company and of the matters in respect of which each receipt or expenditure takes place;
:: Of the assets and liabilities of the company.

Imposition of Taxes

:: Companies are required to withhold income tax from the salary of all regular employees.
:: A value-added tax of 7 percent is levied on the value added at each stage of the production process and is applicable to most firms. The VAT must be paid on a monthly basis.
:: A specific business tax is levied on firms engaged in several categories of business not subject to VAT, based on gross receipts, at a variable rate from 0.1 - 3.0 percent.
::Corporate income tax is 30 percent of net profits and is due twice each fiscal year. A midyear profit forecast entails advance payment of corporate taxes.

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