All Thai registered companies are subject to corporate income tax (CIT) on net profits are also required to make tax prepayment in the form of a half-year report (form PND 51). The deadline of PND 51 filing is within 60 days of your half year financial operation. Most companies in Thailand financial period is from Jan 1 to Dec 31 unless special provision is made. This means that 99.5% of all Thai registered companies is obligated to file their PND. 51 between July 1 to August 31 otherwise you will risk being fine.
Bi-annual accounting compliance in Thailand.
A company is obliged to estimate its annual net profit as well as its tax liability and pay half of the estimated tax amount within two months after the end of the first six months of its accounting period. The prepaid tax is creditable against its annual tax liability.
Example: If a company’s accounting period ends at the end of the calendar year – December 31 – the first six months constitute months of January – June. The company’s half-year report will then be due within two months after June, that is to say by the end of August.
If you are a company is trying to pay less half-year tax by forecasting lower annual profit or simply underestimating its earnings lower annual profit, then when the actual year-end profitability comes out to be 25% higher than your forecast, you it will have to pay an extra 20% tax on the difference amount between the forecast and the actual tax.
A reasonable exception to this rule is when the company files a half-year report on an estimated amount of net profit that is greater than or equal to one half of its actual net profit from the previous accounting year (as filed in the corporate income tax return). Therefore, if this holds true and the company happens to underestimate its earnings beyond the acceptable threshold, this shall still be treated as a sensible approach.
UnionSPACE can assist your company in estimating and submitting your company’s half-year report along with your tax payments to maximize tax saving.
