ACCOUNTING & TAXATION
++ If you set up a good system of Accounting & Taxation systems in your business, your administrator will easily to understand the financial repot and can evaluate further company’s administration and prevent corporation and mistakes that will happen. A good strategy of business will help you to run your business effectively. Good taxation system is able to control tax payment and decrease tax capital.
++ To run business it is very important to have good consultation to advise and plan in your financial and management system.
A Thai company is a company incorporated under the law of Thailand. Thai company is subject to tax in Thailand on its worldwide net profit at the end of each accounting period (12 months) and has to engage with the Revenue Department of Thailand and Ministry of commerce.
1. Revenue Department of Thailand : must to submit forms e.g.
- Por. Por.30 must be submit within the 15th of next month.
- Por. Ngor.Dor.1 must be submit within the 7th of next month.
- Por. Ngor.Dor.3 must be submit within the 7th of next month.
- Por.Ngor.Dor.53 must be submit within the 7th of next month.
- Por.Ngor.Dor.51 must be submit within 60 days from the half-year of accounting period.
- Por.Ngor.Dor.50 must be submit within 150 days from the end of accounting period. etc.
2. Ministry of commerce : The company has to submit the annual report of each year or accounting period.
Our company will support you about General Journal, Input - Output Tax, Balance Sheet , Profit and Loss Statement, Trial Balance, Annual Report, etc.
Under Thai law we have many kind of TAX ; Corporate Income Tax ,Personal Income Tax ,Value Added Tax and Specific Business Tax, etc. After finishing the company establishment, you have your own company and you have to submit the Corporate Income Tax which a direct tax levied on a juristic company or partnership which is established under Thai or foreign law and carries on business in Thailand or derives certain types of income from Thailand .
Some types of taxation;
1. Por.Por.30 is a Value Added Tax .Which it’s general rate is 7 percent , and it shows the income and expenses of the company on each month . The company has to submit within the 15th of next month.
2. Por.Ngor.Dor.1 is withholding tax from Employment income. It shows the salary, wage and profit which the company has to pay for employees each month and have to submit within the 7th of next month.
3. Por.Ngor.Dor. 3 is a withholding tax for certain categories of income between the juristic person and natural person .The payer of income has to deduct withholding tax at sources and submits the amount of tax the District Revenue Office. The tax withheld shall then be credited against tax liability of a taxpayer at the time of filing PIT return, The followings are the withholding tax rates on some categories of income.
1. Rents and prizes 5 %
2. Services and professional fees 3 %
3. Advertising fees 2 %
4. Ship and charges 1 %
4. Por.Ngor.Dor.53 is a withholding tax which is similar with Por.Ngor.Dor.3 but it is a contact between juristic person and juristic person .
5. Por.Ngor.Dor.51 (Half -year tax) is a half-year income tax of the company which it is the forecast of net income, expenses, profit and loss to submit the half - year net profit within 60 days after a half-year tome.
6.Por.Ngor.dor.50 (Annual tax) is a year income tax of the company which it is the net income and expense that shows profit and loss of worldwide net profit. It’s is submitted within 150 days validated from the date of closing account.
7. Por.Ngor.Dor.91 or Personal Income Tax. Is a assessable income .The term covers income both in cash and in kind. Therefore any benefits provided by an employer or other persons, such as a rent - free house or the amount of tax paid by the employer on behalf of the employee, are also treated as assessable income of the employee for the purpose of personal income tax. And taxpayers are any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. Taxpayer is liable to file Personal Income Tax return and makes a payment to the Revenue Branch Office within the last day of March following the taxable year.
The Social Security means the security which society provides for its members by sharing risks form the stoppage on reduction of earning resulting from sickness, maternity, death, invalidity, old age and unemployment, the provision of medical care and the provision of child allowance. The insured person is the employee who starts working in the enterprise with 1 or more employees. The employers have to submit the Registration Form within 30 days. In case the number of employees is increased, the employer will submit for new employee Registration Form if he/she has never received social security card before.
The Employers can submit the Registration Form by themselves, or by the authorized officer. Social security fund at the rate of 5% of employee's wage calculated from employee's monthly wages. The highest rate is 15,000 Baht per month . Moreover, the government has to pay one part. Employers must deduct wages of an employee at the amount to be paid for contribution, and pay contributions on the part of employers at the same amount of employee.
:: And the insured persons will get 1 cards ;
Medical Card. The insured persons will receive the Medical Card after registration and pay contribution for 3 months. They have to select hospital by their own. The SSO will send medical card to them so that they can receive free medical treatment at the registered hospital indicated in medical card.
.:: The qualify conditions are as follows :
1. Sickness : pay contributions for not less than 3 months within 15 month before the date of receiving medical treatment.
2. Invalidity benefit : an insured person will receive the actual cost of health care as necessary but not more than 2,000 baht/month, and cash benefit at the rate of 50% of wage/month for the whole life, and in case of death, the funeral manager and survivers will receive death benefits.
3. Maternity benefit : pay contributions for not less than 7 months within 15 months before the date of confinement.
4. Death benefit : pay contributions for not less than 1 month within 6 months before death.
5. Child allowance : pay contributions for not less than 12 months within 36 months before the month of receiving benefits.
6. Old-age pension : pay contributions for not less than 180 months, 55 years of age and cessation of being an insured person.
7. Unemployment Insurance : pay contributions for not less than 6 months within 15 months before the month of unemployed.
And must be paid before the 29th of every month.
When you run your business or has some business contact such as commercial contract, Hire contract, Sale, adept payment and notice, etc. ,to prevent legal and commercial disadvantage or problem that will happen in the contract, you should consult the Attorney or Lawyer to get advise in contracting or checking contract before drafting the contract.