In Thailand, every business is required to comply with the reporting requirements for each accounting period. The requirements include preparing financial statements and maintaining the book of accounts and statutory records.
This article walks you through what you need to know about the reporting requirements for companies registered in Thailand.
Requirements for maintaining accounting books and statutory records
All Thailand companies have to keep books and abide by the accounting process required by relevant Thailand regulations, including the Accounts Act and the Revenue Code. While business owners can prepare the documents in any language, a Thai translation must be attached to the documents.
Every accounting entry must be typewritten, written in ink, or printed. The Accounts Act of 2000’s Section 12 particularly lays down rules on maintaining the accounts properly.
The staff obligated to keep accounts must submit complete and accurate documents for making accounting entries to the bookkeeper to ensure the accounts show correct operations’ outcomes, financial state, and accounting standards.
Accounting principles and period
In Thailand, the authoritative group for promoting the generally accepted accounting principles’ application is the Institute of Certified Accountants and Auditors of Thailand. A company must consistently use its accounting technique and can only change it after obtaining the Revenue Department’s approval.
Examples of accounting policies include depreciation, consolidation, statutory reserve, accounting for the pension plan, and stock dividends.
The accounting period must be twelve months. A newly registered company should close their accounts within twelve months of its incorporation unless stated otherwise by the Articles of Association. After that, companies should close the accounts for every twelve months.
Before changing the accounting period, a company must get written approval from the Revenue Department’s Director-General.
Reporting requirements for Thailand companies
Every juristic company, partnership, foreign companies’ branches, and joint ventures need to prepare financial statements for every accounting period. The financial statement must be subjected to the opinion and audited by a certified auditor.
However, this ruling does not apply to the financial statement of a registered partnership formed under the country’s law, whose total assets, capital, and revenue do not exceed the value prescribed in the Ministerial Regulations.
The company’s auditor must certify the performance record, whereas the shareholders have to approve it. After that, the record needs to be submitted to the MOC’s Commercial Registration Department and the MOF’s Revenue Department.
In a private limited company, the director will be responsible for arranging a shareholders’ annual meeting. During this meeting, the company’s audited financial statement within four months of the fiscal year’s end will be approved. The financial statements and supporting documentation, which includes the shareholders’ list during the meeting, will be submitted to the Registrar within one month following the meeting’s date.
Similar to a private limited company, the director of a public limited company is obligated to arrange an annual meeting for shareholders for the approval of audited financial statements within four months of the financial year’s end.
The director should certify the copy of the audited annual report and financial statements, along with a copy of the meeting minutes, approving the statement. After that, the director has to file the statements and necessary documents, including the shareholders’ list on the meeting’s date, to the Registrar within one month following the meeting’s approval.
Moreover, a public limited company needs to publish the balance sheet for public information in the newspaper for a minimum of one day within one month of the date the sheet was approved at the meeting.
On the other hand, for a foreign company, including the representative office, branch office, and regional office, the office’s Managers will be responsible for submitting a copy of the financial statement to the Registrar within one-hundred fifty days following fiscal year’s end. For these types of incorporations, approval in the shareholder meeting is not necessary.