newly-established company or partnership should close
accounts within 12 months from the date of its registration.
Thereafter, the accounts should be closed every 12 months.
The performance record is to be certified by the company
auditor, approved by the Managing Director, and filed
with the Commercial Registration Department at the Ministry
of Commerce within 5 months of the end of the fiscal
year and with the Revenue Department at the Ministry
of Finance within 150 days of the end of the fiscal
In general, the basic accounting principles practiced
in the United States of America are accepted in Thailand,
as are accounting methods and conventions sanctioned
by law. The Institute of Certified Accountants and Auditors
of Thailand is the authority promoting the application
of generally accepted accounting principles. Any accounting
method adopted by a company must be used consistently
and may be changed only with approval of the Revenue
accounting practices of note include:
The Revenue Code permits the use of varying depreciation
rates according to the nature of the classes of assets
which have the effect of depreciating the assets over
periods that may be shorter than their estimated useful
lives. These maximum depreciation rates are not mandatory;
a company may use lower rates that approximate the estimated
useful lives of the assets. But if a lower rate is used
in the books of the accounts, the same rate must be
used in the income tax return.
Accounting for Pension Plans
Contributions to a pension or provident fund are not
deductible for tax purposes, unless these are actually
paid out to the employees or the fund is approved as
a qualified fund by the Revenue Department and is managed
by a licensed fund manager.
A statutory reserve of at least 5 percent of the annual
net profits arising from the business must be appropriated
by the company at each distribution of dividends, until
the reserve reaches at least 10 percent of the company's
Stock dividends are taxable as ordinary dividends and
may be declared only, if there is an approved increase
in authorized capital. The law requires the authorized
capital to be subscribed in full by the shareholders.
Requirements and Standards
Audited financial statements of juristic entities (that
is, a limited company, a registered partnership, a branch,
a representative office or a regional office of a foreign
corporation, a joint venture) must be certified by an
authorized auditor and submitted to the Revenue Department
and (except for joint ventures) to the Commercial Registrar
for each accounting year.
standards conforming to international auditing standards
are, to the greater extent, recognized and practiced
by authorized auditors in Thailand.