Reporting requirements and accounting procedures are specified by the Civil and Commercial Code, the Revenue Code and the Accounts Act. In Thailand, the accounting standards have been issued by the Institute of Certified Accountants and Auditors of Thailand. These standards have usually been developed from International Accounting Standards (IAS), or from generally accepted accounting standards (GAAP) used in the United States.

There are two main taxes that directly affect businesses operating in Thailand:

Corporate Income Tax - All business establishments must have a taxpayer identification card within sixty days of incorporation. The corporate income tax rate is 30% of net profit. Corporate taxes are due semi-annually. Financial statements must be prepared annually by a company auditor. The Revenue Department requires that accounts be in the Thai language. The books must be kept at the place of business for ten years.

Value Added Tax - Created in 1992, the VAT is applied to each stage of the production process, and is paid on a monthly basis. The VAT rate is 10%. Exports, domestic transportation and certain other sales are exempted from VAT.

Other taxes to consider include : the Specific Business Tax, which applies to certain industries such as banks, finance and insurance companies, the Remittance Tax, which affects branch offices, the Withholding Tax, the Personal Income Tax, which is 30-37% for income in excess of $40,000, and the petroleum, stamp duty on certain transactions, excise taxes on a number of goods such as liquor and tobacco, and property taxes.

Impact of Double Taxation Treaty - The U.S. and Thailand signed a tax treaty in 1996. The treaty will eliminate double taxation, giving U.S. investors a credit against their U.S. tax obligations for taxes paid in Thailand, as well as other benefits. The treaty will come into force in 1998.

Contact :
Revenue Department
2 Chakrapong Road
Chanasongkram, Pranakorn
Bangkok 10200
Tel: (662) 281-5777, 280-0140/9
Fax: (662) 280-0304

Excise Department
1488 Kakhon Chaisri Road
Bangkok 10300
Tel: (662) 241-5600/19
Fax: (662) 241-1030

Disclaimer: Although the information in this report has been obtained from sources believed to be reliable, we do not guarantee its accuracy and such information may be incomplete or condensed. Please seek professional advice for more specific information.