Thailand has improved its economy tremendously from 1985 to 1996. During this period, the economy of Thailand rose to an average of 12.2% annually. However, it has also experienced some crisis that helped modify the processes for industrial growths. In recent years, the country has emerged to become an industrial hub catering to many opportunities for industrialists and its people. And to improve the processes, it will need a high quality accounting company in Bangkok to record and monitor the growth.
Presently, the accounting and auditing standards in Thailand are created by the ICAAT (Institute of Certified Accountants and Auditors in Thailand). The guidelines for accounting and auditing especially for government taxes and financial statements abide by the ICAAT standards.
Up till today, the ICAAT have issued a number of accounting standards to regulate accounting policies, income statements, EPS, government taxes and various accounting modifications which have developed in recent years. The accounting system is regulated by the board of supervision for auditing practices, which oversee the accounting and auditing standards implemented and may make alternations when required. So here’s how some accounting company in Bangkok does the processes:
- Accounting for a newly incorporated company
All companies operating in Thailand must have a TIN within sixty days of its incorporation.
- Personal and corporate income tax falls under the direct tax
Accounting in Thailand is somehow different from other countries. Here you’ll notice that the CIT and PIT are parts of direct taxes. The corporate income taxes are charged to a partnership firm or company, which has been formed under the Company Act of Thailand. The same rules apply even if they are owned by foreign investors. However, foreign companies must accomplish a quarterly profit and loss statements and submit it to the regulating bodies.
- The need to prepare accounts
All companies operating in Thailand will have to prepare transaction records. It can either be credit or debit transactions. The companies also need to prepare a list of transactions done in purchasing things outside Thailand. This rule is applicable to all types of business entities.
- All records must be reviewed by an accountant
Business obligations and transactions must be carefully monitored by a certified accountant to ascertain any type of errors. These records must be submitted within few months after the end of a financial year.