A client recently asked MSNA a question about fines for late filing of tax returns.
I understand that taxes must be filed within the deadline. If the last day of filing falls on a holiday or weekends, does it mean we have to file taxes before the due date? And if we file it after deadline, how much penalty do we have to pay?
Yes, you have to file your Thai taxes within the due date. Failure to file tax returns and remit tax within the prescribed due date shall be subject to surcharge and penalty as follows:
1. Surcharge is 1.5% per month or a fraction thereof of the tax payable, but in no case shall the surcharge exceed the amount of tax payable for late filing of the following tax returns:
– Personal Income Tax,
– Corporate Income Tax (not including mid-year tax),
– Withholding Income Tax,
– Value Added Tax (VAT), and
– Specific Business Tax (SBT)
2. For Mid-Year Corporate Income Tax, surcharge is 20% of the tax payable or the deficient tax as the case may be.
3. House and Land tax for the year paid after the due date shall be subject to a surcharge of up to 10% if made within four months after the due date. If the tax is overdue for more than four months, the District Officer is empowered to attach the property on which the tax is due for the purpose of selling it by auction and applying the proceeds from sale for settlement of the tax due.
4. Municipal Tax for the year paid after the due date shall be subject to a surcharge at the rate of 10% to 24% of the tax due.
5. Signboard Tax for the year paid after the due date shall be subject to a surcharge at the rate of 10% of the tax due.
6. With regard to Social Security Fund, remittance of the contribution for the month after the due date is subject to a surcharge at the rate of 2% per month of the contribution amount due.
- For Corporate Income Tax, the maximum penalty of 200% of the tax due shall be imposed only in the case of tax assessment following the audit by the Revenue Department.
- For Value Added Tax and Specific Business Tax, penalties will be:
- Up to 200% of tax due in case of failure to file a tax return
- Up to 100% of the shortfall in the tax due following an inaccurate tax return.
NOTE: The above penalties may be waived or reduced according to the regulation prescribed by the Director-General with the approval of the Minister of Finance.
Failure to file a return will be subject to a fine of not exceeding Baht 2,000.
However, in the event that the deadline of filing a tax return falls on a weekend or an official holiday, you can file and pay taxes on the next working day. This would not be regarded as late filing.
Contact MSNA for your Thai accounting and tax needs. As your tax agent, our well-experienced English speaking accountants will make sure that your taxes are prepared and filed accordingly.