The businesses in Thailand welcomed a new law announced by the Thai government on 1 January 2016 that they may be eligible for being exempt from an audit by the Revenue Department on their income incurred within the accounting periods beginning before 1 January 2016. Here are the conditions:
- Being a company or juristic partnership that did not have gross income exceeding THB 500 Million in the accounting period of 12 months ended within 31 December 2015;
- Being a company or juristic partnership that is not being audited by the Revenue Department before 1 January 2016; and
- Not being a company or juristic person that issues or uses fake VAT invoices or presents false expenses to the Revenue Department.
What do you have to do to enjoy this measure?
The company or juristic partnership must register for this measure on the website of the Thai Revenue Department between 15 January to 15 March 2016.
After the registration on the website, the company or juristic partnership must:
- prepare its accounts and financial statements to reflect the real position of its business operation from the accounting period beginning on or after 1 January 2016;
- file all tax returns applicable to its operation and submit taxes and duties completely from 1 January 2016 onward; and
- not do anything to avoid paying taxes and duties.
If you do not fully comply with the above, the Revenue Depart will have the right to audit you.
Please note that even though your company has complied with all the above, if you seek a tax refund, the Revenue Department is empowered by the law to audit you for the purpose of processing the tax refund.
Consult with MSNA for your accounting and tax needs in Thailand.