VAT Application after Company Registration in Thailand

 

If your new business in Thailand projects to make more than 1,800,000 Baht in revenue per year, then you must go for Value Added Tax (VAT) Registration with the Thailand Revenue Department. Any Thai business that wants to sponsor a foreign worker’s work permit must also register for VAT. A Thai corporation must also register for VAT to obtain some sort of business permit.

Otherwise, it is optional to register for VAT. If a Thai business has significant start-up costs, such as office equipment and design/fit-out services, it may choose to voluntarily register for VAT.

Remember that it is difficult to revoke your VAT registration once you have registered for it. Hence, if you’re thinking about registering voluntarily, don’t make this decision hastily.

If you have decided to go for VAT Registration for your business in Thailand, let us guide you through the process.

Process of VAT Registration in Thailand

The following paperwork needs to be ready to register for VAT:

• Three sets of the P.P.01 form. This is an application form for VAT registration.
• A housing registration letter showing where the company is located with the signature of the building owner (if renting, you must also give a signed copy of your landlord’s national identification card)
• A copy of the passports, visas, and work permits of company directors with their signatures
• A photograph of company headquarters, including a signboard and inside of the offices
• Rental agreement (for rented premises)
• The company registration certificate.

Your landlord might charge you extra if you rent an office so they can issue you a house registration and other necessary paperwork.

You have to send the registration application to your local Area Revenue Office for Bangkok, or to the local Area Revenue Branch Office if elsewhere in Thailand.

However, now you can register online under the guidance of a local Thai tax consulting firm.

What to do after VAT Registration for your Business in Thailand?

Businesses that register for VAT have to do the following on mandate:

• Provide a tax invoice for every sale, charge 7% output VAT on products and services, and send the money you make back to the revenue department.
• A 7% input VAT is also applied to purchases made by the company; this VAT can be deducted from sales VAT. VAT paid on certain goods and services might be subtracted from the VAT that is levied and collected. The business must save the tax invoice from purchases as evidence of the tax credit that can be applied to deductions.
• The P.P. 30 form is mandatory to pay VAT for the previous month by the 15th of every month.
• When paying for a service that is VAT registered, you must file a P.P.3 or P.P.53 form, issue a withholding tax certificate, and withhold tax.
• Together with your company registration, the VAT registration certificate needs to be on display at your company’s physical location.

If you fail to file the P.P.30 form for more than six consecutive months, your VAT registration will be automatically terminated. Also, you will be fined.

Is your business exempted from VAT Registration in Thailand?

Use the list below to see if your business qualifies for VAT registration in Thailand. All business operations with a zero percent VAT rate or exemption from VAT are as follows:

1. Small enterprises whose annual turnover is less than 1.8 million baht
2. Exported goods
3. Services provided in Thailand and consumed out of the country
4. Businesses that sell or import unprocessed agricultural products and related goods
5. Businesses that sell or import newspapers, magazines, and textbooks
6. Businesses that offer the following activities:
   – Domestic and international transportation;
   – Healthcare provided by the government and public hospitals;
   – Education provided by the government and recognized educational institutions;
   – Medical auditing services;
   – Lawyer services in court;
   – Institutions that offer cultural services such as sports, museums, zoos, etc.
   – Institutions whose income comes from commerce, agriculture, transport, etc.
   – Institutions of investigations, research, and other technical services;
   – Activities kept under the supervision of the Customs Department;
   – Religious and charitable services;
   – Services of government agencies;
   – Services of local authorities. 

If your business in Thailand commits to yielding a turnover of more than 1,800,000 Baht annually and it is not in the list above, you have to go for VAT Registration in Thailand. 

The Bottomline

All entities that are in good legal standing in Thailand must register for VAT. You must retain your company’s books on an annual basis after registering for VAT in Thailand. Consultants and advisors at  Konrad Legal will keep your documents up to date while adhering to legal requirements.

Contact our company for more precise details regarding VAT certification in Thailand. Allowing us to assist you with the Value Added Tax will result in successful registration, timely and accurate documentation preparation, and regular, accurate financial record-keeping.

We offer financial management to international companies. So, as quickly as feasible, we can assist you in obtaining the VAT registration number and certificate in Thailand. Financial management for international businesses is one of our services. As a result, we can assist you in obtaining the VAT registration number and certificate in Thailand as soon as feasible. By doing this, you can ensure that you won’t miss the registration deadline or run into problems getting the VAT registration number.

We have a wealth of tax service experience in Thailand. You may count on us to create the value-added tax report for you each month if you choose us. Nonetheless, we will assist you in submitting the paperwork to the Revenue Department monthly. 

With our professionals handling every area of your accounting—many of them are native Thai speakers—you won’t have to worry about making any mistakes. Simply email us at officer@konradlegal.com and our team of professionals will get back to you within one Thai working day.

Outsourcing Accounting Services in Thailand

 

Outsourced Accounting Services in Thailand can not only help businesses here save time and effort, but can also protect them from heavy penalties. As a leading accounting and tax service provider in Thailand, we have witnessed many businesses run aground due to their lack of knowledge and experience in Thai Accounting & tax standards, specifically, foreign businesses.

In Thailand, outsourcing accounting, audit, and tax services is a common practice for businesses looking to streamline their operations and ensure compliance with local regulations. Here are some key points to consider when outsourcing these services in Thailand:

Accounting Outsourcing in Thailand

• Bookkeeping: Outsourcing bookkeeping services in Thailand can help businesses maintain accurate financial records, manage accounts payable and receivable, and ensure compliance with accounting standards.
• Financial Reporting: Outsourced accounting firms in Thailand can assist in preparing financial statements and reports, providing valuable insights for decision-making.
• Payroll Processing: Outsourcing payroll services in Thailand will help ensure timely and accurate payment of salaries, tax withholding, and compliance with labor laws.

Audit Outsourcing in Thailand

• Internal Audit: Some companies outsource internal audit functions to ensure independent and objective evaluations of internal controls and processes.
• External Audit: Businesses may engage external audit firms to conduct statutory audits for compliance with regulatory requirements and international accounting standards.

Tax Outsourcing in Thailand

• Tax Compliance: Outsourcing tax services helps businesses stay compliant with Thai tax laws, including filing returns, meeting deadlines, and managing tax liabilities.

• Tax Planning: Outsourced tax professionals can provide strategic tax planning advice to optimize tax efficiency and minimize liabilities.

Choosing Service Providers

• Look for firms with expertise in Thai accounting standards, tax regulations, and audit requirements.
• Consider the reputation and experience of the outsourcing service provider in your industry.
• Ensure that the service provider uses secure and reliable technology for handling financial data.

Regulatory Compliance

• Verify that the outsourcing firm is familiar with Thai regulatory requirements relevant to accounting, audit, and taxation.
• Ensure that the service provider follows ethical practices and adheres to professional standards.

Communication and Reporting

• Establish clear communication channels and reporting structures to stay informed about the progress of accounting, audit, and tax-related activities.
• Define expectations regarding the frequency and format of financial reports and updates.

Cost Considerations

• Evaluate the cost-effectiveness of outsourcing compared to in-house alternatives.
• Consider the long-term benefits and potential cost savings associated with outsourcing these functions.

Data Security

• Implement robust data security measures and ensure that the outsourcing provider follows industry best practices for data protection.

Why Outsource Accounting, Audit & Tax Services in Thailand?

Thailand’s competitive business landscape demands a cost-effective approach. Outsourcing accounting not only reduces overhead costs but also provides access to top-notch professionals without the burden of hiring and training in-house staff. Therefore, it is always wise to free up valuable internal resources by outsourcing non-core functions. By entrusting your accounting tasks to experts, your team can concentrate on core business activities, fostering innovation and growth.

As your business expands, so do your accounting needs. Outsourcing allows for seamless scalability, ensuring your financial processes can adapt to the changing demands of your organization. Navigating Thailand’s intricate financial regulations can be challenging. Outsourcing your accounting, audit, and taxation to us ensures access to our pool of highly skilled professionals well-versed in local regulations and international accounting standards. 

Outsourcing will allow you to tap into this expertise, ensuring accurate financial reporting and compliance. This will surely ensure compliance and minimize the risk of legal issues. All you have to do is simply email us your requirements to officer@konradlegal.com and our team will get back to you with the guidance and best outsourced accounting services in Thailand – Konrad Legal.

Open Bank Account in Thailand: Foreigners’ Guide

 

Foreigners must open a bank account in Thailand if they plan to stay here for a long period of time. Note that, this becomes necessary in order to avoid paying exorbitant bank and ATM fees. Managing your finances, including sending and receiving money from overseas, might be made easier if you have a Thai bank account. It can also make life much simpler for you in Thailand because locals frequently utilize wire transfers as a method of payment.

For foreigners who want to open a bank account in Thailand, there are certain stringent requirements. In this article, we’ll go through the requirements for opening a bank account, the most foreigner-friendly banks, and more.

• Document Requirements to Open Bank Account in Thailand
• Is it Possible to Open a Bank Account in Thailand with Tourist Visa?
• Which Bank in Thailand should you Choose to Open an Account with?
  • Bangkok Bank
  • Kasikorn Bank or KBank
  • Siam Commercial Bank or SCB
• What Types of Bank Accounts can you Open in Thailand?
  • Savings Accounts
  • Current Accounts
  • Fixed Term Account
• Considerations Before Opening a Thai Bank Account
• Our Suggestions for Opening Bank Account in Thailand

Documents You Need to Open Bank Account in Thailand

Depending on the bank, you might need to prepare different documentation. Even the same bank’s branches can have varied documentation requirements. The country’s employers and bank managers vary in how strictly they apply the laws; some may be more rigid than others.

In general, if you want to open a Thai bank account, you might have to get ready the following paperwork:

• A passport
• Any one of the following:
  • Work Permit 
  • Non-Immigrant B Visa for business or work
  • O-A long-stay visa, or,
  • 3 Year Non-immigrant Visa for business.

Additionally, some banks could demand more paperwork. Eventually, they may request the following documents from you:

• For proof of Thai Citizenship, a rental or lease agreement is the simplest. It is possible that your energy bill, Thai Residence Permit, Thai driver’s license, or Thai house registration will also be acceptable.
• As a document attesting to your nationality, you can produce a utility bill, driver’s license, or bank statement.
• Proof of Thai property ownership.
• A letter of recommendation from your home bank, embassy, or Thai academic institution.
• A letter from your employer confirming that you are applying for a work permit.

You may bring any documentation that demonstrates your intention to stay in Thailand for a long period, such as a photo ID or documents proving your pension or pay.

Can You Open a Bank Account in Thailand with Tourist Visa?

With simply a tourist visa, it is feasible to create a Thai bank account. Note that, the majority of banks that permit account opening with merely a tourist visa are often found in tourist destinations.

You might want to visit the banks in the Siam, Silom, and Sukhumvit districts of Bangkok. Also, try to visit Promenada, Central Festival, Nimmanhaemin, and the old town area in Chiang Mai.

It is always advised to compare different banks before choosing one. Compare the costs, interest rates, customer satisfaction scores, and account opening procedures at your leisure.

In Which Bank in Thailand should You Open an Account?

There is a reputation for ease of dealing with Bangkok Bank and Kasikorn Bank. They are also renowned for being friendlier to foreign customers than the majority of other Thai banks. These two are not the only choices you can think about, though. Here is a selection of well-known banks you might want to consider using:

Bangkok Bank

Thailand’s largest and most welcoming bank for foreigners is Bangkok Bank. Bangkok Bank offers the largest branch network globally in addition to having more than 1,200 local branches. Additionally, this bank has a reputation for offering the best exchange rate for international wire transactions.

Kasikorn Bank or KBank

The fourth-largest commercial bank in Thailand is Kasikorn Bank. It is recognized for being the first bank in the world to provide a secure mobile payment system.

Siam Commercial Bank or SCB

Another popular bank in Thailand among residents and foreigners alike is Siam Commercial Bank. With an initial opening sometime around 1907, it is the country’s oldest domestic bank. Because non-residents can open an account with just a passport and money to deposit, foreigners in particular favor the bank.

What Types of Bank Accounts can you Open in Thailand?

Expats can choose from a variety of account categories. They are as follows:

Savings Accounts

For foreigners, opening a savings account is the simplest process. You can even create an account as a visitor with some banks, such as Bangkok Bank. The longer time you have left on your visa—which is unlimited—the better.

Current Accounts

For foreigners with work visas, a current account is available. A current account functions virtually in the same way as a savings account in Thailand. You won’t get a passbook if you have a current account; you’ll just get a chequebook.

Fixed Term Account

For foreigners, opening a fixed-term account in Thailand can be more difficult. It is because different rates are offered by many Thai banks to “non-residents.” However, there are several methods to go about it. Furthermore, the thirteen-digit social security number on a foreign national’s work visa may be used as an ‘ID’.

You ought to be able to get the “local” rate if you hold a residency permit.

Considerations Before Opening a Thai Bank Account

Please note that, when selecting a Thai Bank account, there are a few considerations to make.

Learn about the Branch Policies of the Bank: In Thailand, a lot of policies tend to be branch-specific. Because of this, just because something doesn’t work out in one branch, it doesn’t necessarily follow that it won’t function in any other bank branches.

Know the ATM & Conversion Fees: The ATM withdrawal fee and conversion rate fees are normally exempt if you use the ATM at your bank. Note that different banks have specific policies in this regard.

Process of Sending Money Abroad: Each bank has a different set of costs for sending money outside of Thailand. However, no matter how you make the transfer, the majority of institutions in the nation charge a minimum of 150 Thai Baht. Some banks, including Kasikorn Bank, don’t impose a fee if the transaction is completed online.

Our Suggestions for Opening Bank Account in Thailand

The following three points cover a major portion of our suggestions as these evolved from a decade of our experience in facilitating foreigners to open Bank Accounts in Thailand:

• It might only be possible to open an account at the bank’s main branch in person if you’re a non-resident.
• Thai ATMs are far more useful and may be used to pay bills, transfer money between banks, and withdraw cash.
• Foreign nationals who want to open a bank account in Thailand must adhere to some stringent rules.

Many a time, the process of opening a bank account in Thailand becomes cumbersome for foreigners. The reason behind this is the secure banking policies and stringent revenue code of the kingdom. In case, you are facing any such issues, feel free to consult us. Simply email us at officer@konradlegal.com for expert and professional guidance.

How to Hire the Best Accountants in Thailand?

Are you planning to hire the best accountants in Thailand? Then there are many checkpoints that you have to pass through to make the proper selection. Accountants provide a range of services. They help your business stay compliant with Thai corporate laws and steer clear of tax blunders. Additionally, they can facilitate the numerous legal processes in both your professional and private lives.

Let us run you through the points that you must check to verify the capability and reliability of an accountant or accounting firm in Thailand. This will help you to stay assured that your accounts and financial records are maintained well enough. 

Check the Basic Qualities

What Services should you expect from Accountants in Thailand?

Company Registration in Thailand

Tax Filing in Thailand

Corporate Tax Advice

Handle Accounting Transaction

Financial Records & Statements

Payroll Services

Social Security Services

Company Audits

Business Licenses

Visas and Work Permits

Personal Tax Consulting

Judge them by the price they offer

Here you got the Best Accountants in Thailand!

Basic Qualities to Check to Hire the Best Accountant in Thailand

Thai accountants will be responsible to create your financial accounts and taxes if you own a business in Thailand. To execute this action, the accountant must have the following basic qualifications:

• Have recognized degrees in accounting
• Have a proper understanding of Thai corporate laws, norms, and tax laws
• Knowledge and expertise to complete the necessary paperwork to incorporate your company 
• Have practical experience in compiling financial accounts to prevent submitting taxes wrongly
• Capability to undertake yearly company audits

Professional accountants are listed as certified accountants by the Department of Business Development in accordance with Thai law. 

Please note that you have to hire an auditor every year to check the financial records and statements of your company. If the accountant or accounting firm you hire for the regular services is unable to prepare the documents and do the filings properly, auditors will decline to audit your company. 

Services That You Must Get From the Best Accountants in Thailand

An accountant will be the best only if they can provide a wide array of services to keep you away from legal and accounting needs. This will help you to focus on the operations and growth of your business in Thailand. This wide array of services must include the majority or all of the ones mentioned below:

Company Registration in Thailand

When you wish to register a company in Thailand, you can also hire an accountant in addition to a corporate lawyer. Most accountants are able to register businesses. Give them the relevant details, and they’ll take care of the paperwork.

Additionally, accountants can provide broad guidance on corporation legislation. Speak to a lawyer about complex topics. You can engage another accountant to handle your financial accounts and taxes after using one accountant to register your business.

However, using the same accountant throughout is simpler.

Tax Filing in Thailand

Tax Preparation is an accountant’s primary duty. Your business must file taxes according to Thai revenue codes at particular intervals based on the sort of tax you are subject to. Because you must accurately compute your taxes and file them on certain dates, filing taxes is challenging.

For instance, you must submit Forms PP 30 and 36 each month. But just PND 50 and PND 51 are required to be filed, with PND 50 due in the middle of the year and PND 51 due at the start. You could have to file additional taxes, depending on your business. If you don’t, you may have to pay penalties or go to jail.

Give your bills and receipts to the accountant you hired to file your taxes, and they’ll take care of the rest. And you can make simple dishes.

Corporate Tax Advice

Thailand’s Corporate Tax Laws and Processes are intricate, especially if your business receives a BOI promotion. You might not be familiar with the tax laws and regulations that apply in Thailand. For instance, when paying for services in Thailand, VAT-registered businesses must present their Withholding Tax Certificate, or WHT, to the business.

Additionally, each month the WHT must be paid for and turned in to the Revenue Department. Even worse, withholding taxes vary depending on the services you purchase. Depending on the services, withholding taxes are typically in the range of 2% to 5%.

Invoicing, payroll, and other accounting procedures that your business handles are not included in this. Neither are personal income tax and personal property tax forms.

You risk receiving a fine, having your property seized, or even going to jail if you break these rules and regulations. Furthermore, it won’t help if you claim that you weren’t aware of these laws and rules. You can seek guidance from accounting firms on how to file taxes, how to legally reduce your taxes, and how to get a tax refund from the Revenue Department.

They can assist you in avoiding paying excessive taxes. Because it might take years for the Revenue Department to refund any overpayments. The Revenue Department may contact you occasionally to ask you questions and to have a conversation.

The Revenue Department may occasionally want to speak with you and inquire about your situation. And they might visit your office to look around. Accountants can assist you in these circumstances and respond to inquiries on your behalf so you don’t provide incorrect information that might get you in trouble.

Handle Accounting Transactions

Your company’s income and costs, such as office rent and wages, must be supported by receipts and invoices. Cash cannot be given or received without a paper trace. Additionally, you must demonstrate to the Revenue Department where you obtained the funds and how you used them.

This transactional justification is required. Without a valid reason, you cannot transfer money to another person. For that particular form of revenue or expense, you must account for your income and expenses correctly. Additionally, every source of income and expense operates in a different way.

You must demonstrate to the Revenue Department how you accounted for them, so knowing this is crucial. You could have to give these accounting transactions to the Revenue Department yourself if your accountant isn’t in charge of them. However, an accountant should provide you with guidance, provide you with examples, and ensure that your transactions are accurate.

Manage and Maintain Financial Records & Statements

In Thailand, running a business involves making and spending money simultaneously. It’s not always possible to see your income or the amount of money you have set aside for upcoming tasks.

You can see where your hard-earned money is coming from and going each month when you engage with an accountant who creates your financial statements. Accountants also provide information about your income and operating expenses.

However, these services might not be paid for by accountants at standard accounting rates. Therefore, to find out what is included in your accounting fees, be sure to contact your accountant.

Payroll Services

Accountants assist you with the payroll services for your business. Payroll services, among other things, entail:

• paying your staff each month
• paying for Social Security, 
• calculating and reporting personal income taxes, and,
• providing pay slips and tax certificates

Some accountants will even pay your staff after you’ve given the go-ahead for their compensation.

Social Security Services

Your employees must be registered with Thailand’s Social Security System. Health insurance, pensions, and unemployment benefits are provided by Social Security to employees.

By 2020, every one of your employees who make at least 15,000 Baht will be required to contribute 750 Baht per month to Social Security. Additionally, your business contributes 750 baht to each worker to Social Security.

A new employee must be registered with Social Security each time they are hired. Additionally, you must notify Social Security if they quit your business. Therefore, accountants often handle all Social Security-related matters.

Company Audits

You must engage a certified auditor each year to review your financial accounts so you may submit them to the appropriate government agencies.

If you prepare the statements, finding an auditor will be challenging. Note that, if you aren’t an accountant certified by the Revenue Department, they won’t review or audit the financial statements you prepare.

In Thailand, accountants and auditors frequently collaborate. Your accountant prepares and sends an auditor your company’s annual financial statements for check and inspection. There is nothing that needs attention from your end.

The services of some accountants include auditing and accounting. However, auditing costs are typically additional for accountants. Over 100 licensed auditors are available to assist with company audits, according to the Securities and Exchange Commission of Thailand.

Business Licenses

Irrespective of the type of business you plan to do in Thailand, you must have the relevant license to do that. That is the token of approval that the Royal Thai Government has legalized your business in Thailand. Therefore, your accountant must have knowledge about the issuance, upgrade, renewal, and surrender of such licenses. The license becomes more crucial if your business is of any of the following types:

• restaurants
• bars
• hotels
• construction companies
• food manufacturers
• recruitment agencies
• travel agencies
• importers and/or exporters
• banks and/or lenders

Knowledge of Visas and Work Permits

Although it may seem weird, accountants can also help you obtain Thai work licenses and visas. They might not be as knowledgeable as immigration lawyers in Thailand, but they could help you and your staff obtain business visas and work permits.

Personal Tax Consulting

Your accountant might also serve as a personal tax advisor for you. They might be ready to handle your personal taxes for an additional fee if they handle your company’s taxes and are aware of your income.

How to check the price of the best Accountants in Thailand?

The following are the three primary factors determining the rates for accountants in Thailand:

• Average monthly accounting transactions
• The complexity of your business 
• Accounting services that you require

The average monthly cost for basic accounting services for startups with few transactions ranges from 4,000 to 5,000 baht.

According to the complexity of your company, accountants charge more. If you established a BOI-promoted company in Thailand, this would be the situation. This is because companies in Thailand receiving BOI promotions, go through more formalities than other business categories.

Finding an Accounting Firm in Bangkok

If you have read through this article and reached this section, you have already found the leading accounting firm in Thailand. We at Konrad Legal Company Limited hold a team of the most efficient and seasoned accountants in Thailand to deliver you the best of services. Our wide array of services includes, but is not limited to the following:

1. Company Registration Documentation
2. Tax Registration
3. Tax Audit and Filing
4. Immigration
5. Payroll Management

Apart from the mentioned ones, we often provide special assistance to our clients in finding a Thai partner, tax schedules, advice to save taxes, and anything and most possible from our end. Feel free to reach out to us by emailing your requirements in detail at officer@konradlegal.com.

Who Are the 10 Top Accounting Firms in Thailand?

Difficult to answer as the largest not always mean the best. Moreover, experiences vary from city to city and client to client. However, I have tried to jot down top 10 accounting firms in Thailand based on my study and experience.

Here goes;

1.  Konrad Legal: Extremely professional, timely delivery and a group of expertise; these are the USPs. Importantly, they have over 15+ experience and have served a wide number of clients. Aside, they offer services at quite a competitive price. Though, my personal favorite is Konrad Legal for a lot of reasons apart from the mentioned above, since the article is about top 10 accounting firms here are some other options. However, you need to meet Konrad Legal and team to know why they are liked by so many, including me of course.

2.  Mazars:  One of the biggest advantages is that they offer a multinational composition of the advisors. Like Konrad Legal, they too offer solutions globally. They provide a full-range service including payroll, audit, company secretarial, business advisory service and legal.

3.  HLB (Thailand) Ltd: It’s been more than 10 years; this company has been in business. They are one of the many accounting firms operating under HLB International that is again a member of Forum of Firms.

4.  B-Accounting: They are familiar enough with the International rules and regulations so that their clients can put their trust in them. As the company has multi-lingual experts they can communicate with the clients in almost all the languages.

5.  M&E (Thailand) Co., Ltd: This German-Thai organization has their close association with the accounting software supplier companies like MAC5 and Quickbooks.

6.  Interactive Associates: The best part about them is that though they have a handful of employees with them they are rendering services to clients globally.

7.  Panwa Group: Apart from accounting, they offer a number of other services too as their experience has led them to a better understanding of the Thai market and culture.

8.  MSNA Group: They have made quite a place for themselves, serving the reputed business organizations in Thailand as well as internationally.

9.  Administration Outsourcing Co., Ltd:  They believe in directing the limited resources of the clients to a productive market area. They are constantly pushing their limits to become one of the top Thai accounting companies.

10. PKF Thailand: One of the oldest accounting companies in Thailand who works with a vision; “Right People. Right Size. Right Solution".