The statement also mentioned firms which agree to adopt the practice would be exempted from backdating probes.
A common practice among smaller organizations in Thailand is to keep two financial statements, a true a single for internal use and an understated 1 for tax filing. The Finance Ministry is aiming to expand the tax base and it desires to end this practice by supplying incentives to enterprise operators.
The ministry’s statement stated companies which have income of not much more than Bt500 million in the accounting year ending on or before 31 December 2015 and which agree to sign up for the single economic statement system would be exempted from backdating probes.
A organization that generates sales and income of Bt500 million or significantly less every single year is considered an SME.
Firms can register on-line to join the system via the Income Department’s web site up to 15 March.
Companies whose tax liabilities are becoming probed or which have allegedly issued fake tax receipts, evaded taxes or had been on trial before 1 January are also eligible to apply. The Income Department will take action against these only for pending circumstances.
Right after signing up, firms are obligated to prepare financial statements that accurately reflect their genuine situation. They need to also refrain from undertaking anything to evade taxes, and need to file and spend their dues correctly.
Tax breaks are becoming presented as a bonus for signing up to the plan. Companies with not a lot more than Bt5 million in paid-up capital and Bt30 million in sales income in the 2015 accounting year, will appreciate tax breaks for two accounting years.
For the 2016 accounting year, the firms will be exempted from corporate earnings tax on net earnings, and in the following accounting year the initial Bt300,000 of their net profits will be tax-exempted and the portion above this will be taxed at ten per cent.
The Finance Ministry hopes the single bookkeeping measure and the tax breaks on offer you for SMEs will encourage them to use economic statements which actually reflect their economic positions.
It really is envisioned the practice will also produce a sustainable tax base that reflects Thailand’s existing economic circumstance.
The ministry meanwhile has stressed this is not a tax amnesty, as they are aimed only at exempting backdating probes, investigation and evaluation.
If companies – soon after joining the plan – fail to comply, they will no longer be protected from backdating probes and investigation and, by extension, criminal liabilities under the Tax Code.
“There are possibilities becoming provided by the government right here than can be enjoyed by SMEs and at the very same time, a single financial statement could support organizations much more effectively plan strategies going forward”, said BSA Law spokesman Apisakdi Kongkangwanchoke.
BSA Law is a major international law firm in Thailand and, like numerous other law firms, provides a variety of legal and financial solutions, which includes in the regions of tax consulting, accounting, auditing, Thai labour law, the Thailand work permit process, investment suggestions and beginning a business in Thailand.
A quantity of these organizations also have a Thai visa service desk, offering suggestions and help in getting a Thai visa. They are also generally utilized by foreigners operating in Thailand with a Thailand operate permit to support them file individual earnings tax every year, which Thai law calls for them to do the identical as their Thai colleagues.