Different countries have different sets of accounting standards. The GAAP or generally accepted accounting principles which was formally titled in the USA differ from every country. There is also no universal system of recording, accounting and publishing that are implemented. A company can develop its own set of standards and procedures to generate a financial statement.
In Thailand, Thai accounting company, a BOI registered corporation, follows a tax year ending December 31. Companies that have just started their operations must close its initial accounting period within twelve months after it has been registered. A chosen accounting period cannot be revised until a request for change is approved by the Department of Revenue.
The company’s balance sheet which states its assets and liabilities must be prepared accordingly and filed every end of the accounting period. The company’s financial statements are audited by a certified public accountant at the end of the accounting period as well. Within a period of four months, after the closing of the accounting period, all audited accounting documents are discussed during the meeting of all shareholders who will approve the documents. After the approval of the financial statements by the shareholders of the company, these are submitted to the Department of Revenue and to the Commercial Registrar within a month period. A penalty of THB 200,000 will be imposed in failure to comply with this regulation.
The Thai accounting accompany which is duly registered by the BOI must also apply for a TIN or Taxpayer Identification Number within a period of 60 days after the date of its incorporation. Foreign companies must apply its TIN before they start doing business in Thailand. This is already the permanent corporate number which will be used for income tax, VAT and withholding tax purposes.
Aside from the yearly tax payment of companies, all companies subject to corporate income tax are required to submit a half year report and prepayment. How is this done? The company shall compute and estimate its net profit for the year as well as the tax due and pay 50% of the estimated amount of tax within 8 months after the start of the accounting year. In instances when payment of prepaid taxes was not sufficient, an additional tax of 20% is due on the difference of the actual tax due and the forecast tax.