Accounting in Thailand: What Expat Entrepreneurs Should Know

Over the years, Thailand has built itself as a promising place for foreigners looking to live and do business in Southeast Asia. However, expats should know that they have rules to follow here if they want to be successful here. That includes abiding by Thailand’s accounting standards. 

To get you started, here’s a quick breakdown of the accounting rules to keep in mind before you launch a business in Thailand. 

Thailand’s Accounting Laws Apply to Foreign Businesses Too

Let’s have a look at the key pieces of legislation that also affect expat entrepreneurs:

• The Accounting Act BE 2543 contains most of the requirements for bookkeeping, financial reporting, and other accounting practices for businesses in Thailand. You ought to read up on these to avoid inadvertently violating them. 

• The Civil and Commercial Code also has more accounting rules for companies, such as the deadline and contents of annual financial statements, auditing, and shareholder access to financial documents. 

• Thailand’s Revenue Code establishes the tax policies for both local and foreign-owned companies. These include corporate income tax rates, filing requirements, provisions for foreign entities, VAT, and withholding taxes. 

Can Expat-Owned Businesses Use the IFRS?

The Thailand Financial Reporting Standards or TFRS are based, for the most part, on the International Financial Reporting Standards or IFRS. While you might think this allows expat-owned enterprises to automatically submit financial reports using IFRS, it’s not so clear-cut. It’s still best to use the TFRS by default, especially if you’re simply running an SME or a private limited company. 

The use of IFRS for reports is typically allowed for non-statutory reasons, such as when an investor requires you to do so. However, statutory filings should be in TFRS. 

Expats Must Submit Documents in Thai

As it is with all legal documents in Thailand, financial statements, audit reports, and other filings should be submitted in Thai. This rule extends to businesses owned by expats as well. If you made the documents in a different language, you need to include Thai translations. 

It’s no surprise that many expat entrepreneurs here hire business services that have translators — not only would they have help with their accounting, but they would also have a team that would help them understand and communicate in Thai. 

Thai Accounting Services Can Be Of Service

Speaking of business services, it would be in your best interest to have such a firm handle your enterprise’s accounting in Thailand. It can be difficult for expats to comply with all the requirements by themselves — as even locals can have a hard time too. 

With an accounting service, you can keep up with various responsibilities, including:

• Monthly bookkeeping and reporting 

• Monitoring your business’s compliance with the Thai legal framework

• Tracking for updates in accounting standards, taxation policies, and so on

• Preparing and filing annual financial statements and tax returns

• Optimising your tax strategy to take advantage of tax incentives, deductions, etc.  

• Coordinate annual audits with certified public accountants

• Ensuring all financial documents are properly translated into Thai

  
  

This helps your company avoid mistakes like missed filing deadlines, poor record-keeping, and other non-compliance issues, which could lead to hefty penalties. In worst-case scenarios, you could even get your business licence suspended or revoked. 

Find Success in Thailand with Accounting Experts 

An expat who wants a prosperous business in Thailand would do well to follow the proper accounting practices here. By doing so, they can manage their finances well while staying compliant with the regulations affecting the company. 

If you need help positioning your business for long-term success, don’t hesitate to engage with a Thai accounting firm. Sometimes, all it takes for a foreigner to thrive here is to have local support.