Today, we got a question from one of our accounting clients regarding audit.

Question:

We are not familiar with what procedures are needed to be done to finalize audited accounts. Could you kindly advise us?

Answer:

Our sister company, MSN Audit Ltd., can provide you their audit service. It includes preparing the audited financials in Thai for filing with the authorities and in English for the management.

You need to hold an Annual General Meeting (AGM) to approve the audited financial statements within 4 month from the accounting year-end. And you need to file the audited financial statements with the Ministry of Commerce within 1 month after that. Also, the annual corporate income tax must be filed with the Revenue Department within 150 days from the accounting year-end. Because you hired Libra Accounting Ltd., as your accountant for the whole year, we will prepare the tax return and file those things for you complimentary.

MSNA Ltd., can help you prepare an AGM with the Minutes of Meeting, publishing the AGM notice in a local newspaper and also sending it by return registered mail to all the company shareholders.

Contact MSNA group for your Thai accounting, Thai tax, Thai audit and related business needs.

Can foreigners set up a Thai company in order to open a fertility clinic in Thailand?

Answer:

Yes, foreigners can set up a Thai company and operate a fertility clinic in the Kingdom. The steps involved are:

1. Set up the Thai company
2. Have fully equipped clinic ready to do the services/business
3. Apply for the licenses, where the officials will come to check your facility

We think your biggest challenge is to find at least one doctor, i.e. Obstetrician Gynecologist who will hold the license for your clinic. And if you hire more doctors to work at this clinic, all of them need to apply for a license to work at your clinic and they have to be gynecologists like the first one. If any of the doctors are not Thai, they will still need to have the medical license from Thailand.

Contact ThaiLawyers for company setting up, visa and work permit and related business licenses application in Thailand.

The Revenue Department has recently set the condition for a Specific Business Tax exemption on certain businesses. Under the Royal Decree no. 571, such conditions are as follows:

On Employees Loan

– Interests from loans to employees by policy of a provident fund or other similar funds which give loan to employees for the company or registered ordinary partnership.

On Inter-company Loan

– Inter-company loans between companies not carrying on business of commercial banks, finance companies including payment for bills of exchange issued by or deposits made to financial institutions under the law on the financial institution in return for normal interest rate.

Contact MSNA for your Thailand accounting and tax questions.

Under the Royal decree no. 575, the personal income tax rates for 2013 and 2014 income have been reduced. The new personal income tax rates are as follows:

Contact English speaking accountants of MSNA for your tax questions and for the preparation and submission of your Thailand personal income tax.

Data Center is classified as one of the priority activities by the Thai Board of Investment. In order to promote investment in Data Center, develop information technology infrastructure, and enhance efficiency and to reduce costs of doing business which are crucial to the development of Thailand as center for regional operating headquarters and information technology, the BOI has set the following conditions and privileges of activities eligible for investment promotion as follows:

1. There must be hi-speed fiber optic telecommunications connection throughout data center.
2. The main hi-speed telecommunications system must link data center with domestic and international telecommunications centers.
3. There must be continuous power distribution backup system and backup power generator to support normal operation of information technology system.
4. There must be high-efficiency air conditioning and filter system to support efficient device operation.
5. Area of data center must not be less than 5,000 square meters.
6. Complementary services for customers located in the project e.g. server co-location, managed service, customer’s server backup service, disaster recovery services (DRC), data center professional consultation etc. must be provided.

Contact MSNA for your Thailand BOI company registration, visa and work permit, accounting, tax and other business needs.

The Thai Revenue Department has recently changed the personal income tax rates for the tax years 2013 and 2014.

If you earned income and taxes were withheld using the progressive rate during the year 2013, when you file your personal income tax return of 2013 whose deadline is 31 March 2014, you will most likely get some tax refund due to the fact that your employer withheld the tax using the rates that were in effect last year.

Here are the new personal income tax rates:

If you need help to prepare and file your Thai personal income tax return, please contact MSNA. We have been providing foreigner income tax service for many years.

In November, we posted an article about the new law regarding tax invoices which previously was to take effect from 1 January 2014. However, on 26 December 2013, the Thai Revenue Department has changed the date to take effect on 1 January 2015.

According to this new law, the tax invoice has to have the items on it as follows:

Under the address and contact number of the company, one must add:
– Headquarters (or in case of a branch office in Thailand, has to add the branch number too so that it can be specified whether the head office or the branch office is the one who issues the tax invoice.)

– Tax ID number, which should be near the company name and address) is the same number as the company’s registration number.

2. Under the address of the customer, add:

– ( ) Headquarters ( ) Branch Number………………..

– Tax ID No.: …………………………………

This is because when a tax invoice is issued to a company in Thailand, the issuer will have to check mark to indicate if the buyer of the goods/service is the headquarters or the branch of that company and need also to specify their Tax ID number which is the same as their company registration number.

Reminder if you are the customer:

From 1 January 2014, when you get a tax invoice from a vendor, please make sure you see their Tax ID number and that they specify headquarters or branch number near their company name on top of the tax invoice. Also, near your company name and address, it must specify headquarters (or branch) and your company’s Tax ID Number.

Know more about this new law regarding tax invoices and Thai taxation related matters. Contact MSNA for your accounting, tax and other business needs.

Foreigners who stay in the Kingdom for over 90 days are required to make the notification with the Thai Immigration. The procedures and notification are summarized below:

1. The foreigner makes the notification in person, or
2. The foreigner authorizes another person to make the notification, or
3. The foreigner makes the notification by registered mail
4. The notification must be made within 15 days before or after 7 days the period of 90 days expires
5. The first application for extension of stay by the foreigner is equivalent to the notification of staying in the Kingdom over 90 days.

Requirements for notification by registered mail:

1. Photocopy of passport pages with following pages

– front page showing name/surname/Passport no. etc

– current visa

– last entry stamp of immigration

– last extension of visa

1. Photocopy of departure card TM.6
2. Previous notification of staying over 90 days (if any)
3. Completely filled in and signed notification form TM.47 with signature
4. Envelope with 10 Baht stamp affixed and return address of foreigner for the officer in charge to send back the lower part of form TM.47 after having received the notification. This part must be kept for reference and for future notifications of staying over 90 days.
5. The above mentioned documents must be sent by registered mail and the receipt of the registration kept by the foreigner.

Notice from the Immigration Office:

– Your registered mail must be sent to the Immigration office at least 15 days before the due date of notification.

– Your new form will be stamped as of the expiration date of your old receipt.

– Please keep your receipt of your registered mail in case of lost mail.

– Your document cannot be processed if you have passed the 90 days limit. (You must come to the nearest Immigration office or Immigration Division 1 in person to pay fine of THB 2,000

– Waiting for reply mail over 1 month, please contact Immigration Office with your registered mail receipt.

Reminders:

– The notification of staying in the Kingdom over 90 days is in no way equivalent to a visa extension.

– If a foreigner staying in the Kingdom over 90 days without notifying the Immigration Bureau or notifying the Immigration Bureau later than the set period, a fine of THB 2,000 will be collected. Hence, if a foreigner who did not make the notification of staying over 90 days is arrested, he will be fined THB 4,000.

– If a foreigner leaves the country and re-enters, the day count starts at 1 in every case.

Need help in making notification of staying in Thailand over 90 days or for your Thai visa and work permit concerns, contact ThaiLawyers for further assistance.

Can we set up a call center business in Thailand and get the Thai BOI promotion? What benefits can we get from the BOI?

Answer:

Yes, you can set up a call center business in Thailand. You can also be eligible for BOI promotion under the category of international business process outsourcing activity.

Per the BOI conditions, IBPO services must be provided through the telecommunications network. Services may include administrative support, finance and accounting, human resources, sales and marketing, customer support, international call centers, data processing, etc.

However, only non-tax incentives shall be granted to promoted IBPO companies.

Interested in getting BOI promotion for your company in Thailand, contact ThaiLawyers for company registration, BOI application, visa, work permit and your other business needs.

We would like to cut down the public holiday from 16 to 13 days per year. Do we have to send an official letter to the employees and submit this new company policy at the Labour Department?

Answer:

Yes, you can cut down your annual public holiday to 13 days which is the minimum number of traditional holiday in Thailand per Thai labour law.

You do not have to take it to the Labour Department. Just post it on the company’s bulletin board, if you have one. But if not, just make a letter to announce it and have everyone sign it under the sentence “I have read and understood the above.”

Need help on Thai labour law issues, contact MSNA for Thai accounting, tax and payroll services for further consultation.