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Accounting and auditing in Thawi Watthana follow national Thai laws and standards, since Thawi Watthana is a district within Bangkok. Businesses here must comply with the Thai Accounting Act, the Civil and Commercial Code, the Revenue Code, Thai Financial Reporting Standards, and Thai Standards on Auditing. The Federation of Accounting Professions regulates CPAs and sets standards, the Department of Business Development oversees corporate filings, and the Revenue Department administers taxes. Public companies and regulated industries have added obligations under the Securities and Exchange Act and sector rules. Most juristic entities must keep proper books, prepare annual financial statements, have them audited by a licensed CPA, obtain shareholder approval, and file them with government agencies by set deadlines.
Many accounting and auditing issues are technical and time sensitive. A lawyer can help you plan and avoid penalties, and coordinate with your accountant and auditor. Common situations include disputes with tax authorities, first year setup of a Thai subsidiary or branch, audit qualifications that may affect banking or investor relations, late filings or noncompliance remediation, internal control or fraud concerns, director liability questions related to financial reporting, transfer pricing documentation and intercompany agreements, transactions such as mergers, liquidations, and capital changes, BOI promoted company compliance, and sector specific rules for listed issuers or financial institutions. Legal counsel can interpret the overlap of accounting standards, tax law, corporate law, and regulatory rules, and can represent you in negotiations or appeals.
Legal framework. Key instruments include the Accounting Act B.E. 2543, the Civil and Commercial Code for company governance and meetings, the Revenue Code for tax reporting and audits, the Accounting Professions Act for CPA licensing, Thai Financial Reporting Standards that align with IFRS, and Thai Standards on Auditing. Public companies also follow the Securities and Exchange Act and SEC notifications.
Who must keep accounts. Juristic persons such as limited companies, public limited companies, registered partnerships, limited partnerships, joint ventures, and branches of foreign companies must maintain accounts and prepare annual financial statements that are audited by a Thai licensed auditor.
Standards. Most entities apply TFRS. Non publicly accountable entities may use TFRS for NPAEs, a simplified framework. Listed companies and entities with public accountability apply full TFRS. Audits are performed under Thai Standards on Auditing.
Language. Statutory filings are in Thai. Many companies prepare bilingual Thai English financial statements, but the Thai version governs for filing.
Deadlines. A company must hold its annual general meeting within 4 months of fiscal year end to approve the audited financial statements, file the approved financial statements with the Department of Business Development within 1 month after the AGM, and file the corporate income tax return with the Revenue Department within 150 days of fiscal year end. Monthly or periodic VAT, withholding tax, and social security filings also apply depending on registration status.
Books and records. Books, source documents, and ledgers must be kept in Thailand and retained for at least 5 years, and longer if ordered by an officer during an investigation.
Auditors. Statutory auditors must be Thai CPAs in good standing with the Federation of Accounting Professions. Independence requirements apply. Listed companies and certain regulated entities are subject to auditor rotation limits and additional SEC oversight.
Transfer pricing. Companies with related party transactions must follow the Revenue Code transfer pricing rules. A disclosure form is required when annual revenue meets the threshold set by law, and contemporaneous documentation is expected to support pricing.
Tax and audit coordination. The audit focuses on financial statement assurance, while tax audits by the Revenue Department focus on tax positions and compliance. Financial audits do not guarantee tax outcomes. Consistency between accounting records and tax filings is essential.
Local practice in Thawi Watthana. Businesses in the district typically file through national e filing systems. Local Revenue Department area offices and Bangkok DBD offices serve Thawi Watthana for in person matters. Many SMEs in the district rely on outsourced bookkeeping and local CPA firms, with lawyers coordinating for corporate secretarial work and dispute resolution.
Penalties. Noncompliance can lead to fines for late financial statement filings, penalties and surcharges for late or incorrect tax filings, and possible liability for directors in cases of willful misconduct or false statements.
Yes. Most Thai juristic entities, including private limited companies, must have annual financial statements audited by a licensed CPA, regardless of size. Certain partnerships and joint ventures also have audit obligations.
Thai Financial Reporting Standards apply. If your company is not publicly accountable, TFRS for NPAEs may be permitted. Listed companies and those with public accountability apply full TFRS. Your auditor and lawyer can help determine the correct framework.
Hold the AGM within 4 months after fiscal year end to approve the audited financial statements. File approved financial statements with the Department of Business Development within 1 month after the AGM. File the corporate income tax return within 150 days after fiscal year end. VAT, withholding tax, and other filings follow monthly or periodic schedules.
No. Statutory filings must be in Thai. Many companies prepare bilingual Thai English statements to serve both regulatory and investor needs. Confirm with your auditor and the DBD that your Thai version meets filing requirements.
Verify that the firm and signing partner are licensed CPAs in Thailand and independent from your company. Consider industry experience, capacity to meet deadlines, and whether your company is subject to any rotation or regulator approval rules. Use a clear engagement letter that defines scope and fees.
A financial audit provides an opinion on whether the financial statements are fairly presented under TFRS. A tax audit by the Revenue Department evaluates tax compliance and may challenge positions, request documentation, and assess additional tax, surcharges, or penalties. Passing a financial audit does not guarantee acceptance by the tax authorities.
Foreign owned entities must follow the same accounting and audit rules as Thai entities, plus any conditions under the Foreign Business Act, BOI promotion, or sector licenses. Branches must keep Thai accounts and file audited financial statements in Thailand. Intercompany transactions require transfer pricing documentation.
Revenue recognition, inventory counts and valuation, cash handling, related party transactions, cut off around year end, payroll and withholding taxes, and VAT reconciliation. Weak documentation and controls increase the risk of audit adjustments or tax challenges.
If you have related party transactions, you must apply the arm's length principle. When your revenue meets the statutory threshold, you must submit a related party disclosure form and maintain documentation to support pricing. Even below the threshold, documentation is a prudent risk management step.
You may face fines for late financial statement submissions to the DBD, tax surcharges and penalties from the Revenue Department, and potential director liability for serious noncompliance. Prompt remediation and voluntary disclosure can reduce exposure. Seek legal advice quickly if you are late.
Department of Business Development - for company registrations and annual financial statement filings, AGM minutes, and corporate records.
Revenue Department - for corporate income tax, VAT, withholding tax, transfer pricing forms, and tax audit procedures.
Federation of Accounting Professions - for CPA licensing, Thai Financial Reporting Standards, and Thai Standards on Auditing.
Securities and Exchange Commission, Thailand - for listed company reporting, auditor approval lists, and rotation rules.
Bangkok Metropolitan Administration district offices - for local administrative matters that may interact with business operations.
Board of Investment - for BOI promoted companies with special accounting and reporting conditions.
Social Security Office - for payroll related filings and employer compliance.
Thai Commercial Banks and lenders - for covenant compliance and financial statement requirements in loan agreements.
Define your needs. Identify whether you need bookkeeping setup, statutory audit, tax planning, remediation of late filings, or dispute representation.
Gather documents. Prepare articles of association, shareholder and director registers, trial balance, general ledger, bank statements, sales and purchase invoices, tax returns, prior audit reports, major contracts, and transfer pricing agreements.
Confirm standards and scope. Decide with your auditor whether TFRS or TFRS for NPAEs applies. Align audit scope and reporting deadlines with tax filing calendars and your AGM date.
Engage licensed professionals. Select a Thai CPA for the audit and a lawyer experienced in accounting, tax, and corporate law. Verify licenses and agree on engagement terms in writing.
Set a compliance calendar. Map monthly VAT and withholding filings, payroll, year end close, stock counts, audit fieldwork, AGM, DBD filing, and tax return deadlines.
Address risk areas early. Review revenue recognition, inventory controls, related party transactions, and tax sensitive items. Prepare transfer pricing documentation if needed.
Local coordination in Thawi Watthana. Confirm the correct Revenue Department area office for your location, and plan for any in person submissions if e filing is not available for a specific form.
Document retention. Implement a records policy to retain books and source documents in Thailand for at least 5 years, with secure backups.
Monitor changes. Thai accounting and tax rules evolve. Ask your advisors to brief you on new TFRS updates, e tax systems, or filing rule changes that affect your business.
Escalate issues promptly. If you receive a tax notice or anticipate late filings, contact your lawyer immediately to manage responses, extensions, and mitigation strategies.
