Certainly! Half yearly reporting in Thailand will free up the time of the management and the auditors and will improve the quality of the reported numbers.
Let’s get down to the pros straight!
- Half yearly reporting being a straightforward and simple process, it enables the stakeholders to keep a tab on the company’s key performance matrix regularly.
- Also, it gives the opportunity of comparing the company’s results with its peers of the same industry, whereby coming to a more meaningful conclusion.
- Similarly, the audit committees and the management or board members must hold quarterly meetings. This will provide you with the platform to delve deep into the internal audit and accounts periodically.
Bi-Annual Accounting Compliance
A business must estimate its taxable net profit as well as its tax liabilities. Secondly, it must pay half of the total tax balance within two months of the close of the accounting period. The prepaid fee is applied to the company’s annual tax bill.
For instance, a company’s accounting period may stop at the end of the financial year, i.e., December. Then the first six months are January through June. You have to submit the half-year report within two months of the end of June. You must submit it by the end of August.
If a company tries to pay less half-year tax by predicting lower annual profit or actually underestimating its profits, and the real year-end profitability turns out to be 25% higher than the estimate, the company would have to pay an additional 20% tax on the gap between the forecast and the actual tax.
An annual business report can project net profit more or equal to half of the same of the previous accounting year. This is a fair provision as filed in the corporate income tax return. It is considered a prudent strategy if a corporation undervalues its profits outside the appropriate range.
How to move forward
Half-yearly account auditing in Thailand must be done by a full-fledged audit. And this shift should not be seen as retrograde in nature. Considering the changing dynamics of the business landscape, this indeed a forward-looking thing.
However, if you looking to accomplish half-yearly reporting for your company in Thailand, write to us at [email protected].
For your information we will need the following documents for the calculation;
- Expected expenses and income for the corporation for 2020. If your company expects no income, you must inform it.
- Actual sales and expenses figures for the first 6 months of the year (Jan 2020 – June 2020)
- Estimate of income and expenses for July 2020 – December 2021.
- Salary, rental expenses, and other expenses along with the receipts under the company’s name and company’s registration address.
- If your business is cyclical you must project higher or lower than your expected sales later in the year.
- Copy PND.50 of 2019 (2560) accepted by the Thai Revenue Department.
Not sure where to begin?
Feel free to write your query to [email protected] for professional legal guidance and accounting support for your business in Thailand.
