For a foreign-operated company in Thailand, a solid accounting and financial processing is very important. If the financial processing is judged improper, on top of the heavy fines, the foreign citizen employed under working visa will not be permitted an extension of stay. In addition, facing fines from the tax audit can have an impact on the management and operation of the company.
Even if the accounting of the company has fulfilled the general clauses, it is important for the foreign-managed company to also fulfill the financial requirements set by Thai Immigration and the Department of Labour to prevent facing heavy penalty.
From accounting perspective, the following requirements must be fulfilled by the company in order to apply for the extension of the visa:
・The salary of foreign employee is set more than 50,000 THB, and applicable tax has been paid in full.
・Four Thai employee has been hired in relevance to one foreign employee, and all participating in the social insurance.
・Thai employees are to be on full-time contract, with salary of more than 6090 THB and applicable tax has been paid in full.
・The company assets must not be below 1 million THB due to the cumulative deficit in excess debt.
・The annual sales (not the sole profit) of more than the annual salary of the foreign employee is achieved.
For the foreign citizen to safely operate a business in Thailand, it is essential to have financial processing looked after by an experienced accountant.
For further detail on financial planning and processing, please contact us.
On behalf of the customers, Lai Brothers can look after the following accounting-related business so the customers can have much easier and comfortable business in Thailand.
VAT (Value-Added Tax) Clearance
Under the Thai law, foreign-owned company or a company with sales profit of over 1.7 million THB per annum, must register for corporate VAT. VAT (Value-Added Tax) is a consumption tax, and it is required by the law to report to the local tax office the VAT received through sales and VAT spent through the company expense by the 15th day of each month. At Lai Brothers, we will collect the receipt from expenses and sales and on behalf of customers, report to the local tax office.
Payment of Social Insurance
Thai law requires every employee to participate in the social insurance policy and the policy payment must be made by the following month’s 7th day (approximately 609-1,500 THB per employee). At Lai Brothers, we will fully assist the customers for the application as well the transfer of the payment.
Payroll Report and Payroll Tax Payment
In order to report employee’s payroll as a company expense, it is required for the company to report to the tax office the sum of payroll for the employees. On behalf of the customers, Lai Brothers will assist customers on these procedures.
Withholding Tax Report
In Thailand, it is required by the law to withhold portion of the sales and pay the tax office. By withholding the expense, it is possible to have the expense recognized as part of the company’s expense, which could play a very important role from accounting perspective. At Lai Brothers, we provide wide range of support from simple advice to making a payment on behalf.
Monthly Financial Report
The business corporate operating in Thailand must report to a tax office with financial report from a certified public accountant and the tax report within the 5 months from the establishment. At Lai Brothers, we will create a report based on the expense, income, depreciation and other necessary factors and hand in as a written report.
At Lai Brothers, we can provide an assistant on financial documentation such as the drafting of the annual report based on the monthly financial report, drafting of balance sheet, audit by the certified public accountant, and advices on the payment of corporate tax. For further detail, please contact us directly for the assistant.
Interim Financial Balance (required after 2 years from company establishment)
At Lai Brothers, we can also provide an assistant on financial documentation such as interim financial balance, financial forecast report, calculation of interim tax rate and its payment. For further detail, please contact us directly for the assistant.
For further inquiry on accounting and financial documentation service, please contact us directly at any time.
For more information please contact : Hotline 086-844-1313