Accounting And Auditing In Thailand

Tremendous economy growth rate in Thailand from 1982 to 1996. During the period of 1065 to 1996, the economy of Thailand grew by an average of 12.2.% annually. But, it had also seen the crisis that has changed its processes of industrial growths. In current years, Thailand has been emerging as a great industrial hub which would cater lots of opportunities to people an industrialists. And to enhance the process, it needs quality accounting processes to record its growth. Currently, Accounting and auditing standard in Thailand are developed by ICAAT which stands for institute of certified accountants and auditors of Thailand. The accounting and auditing guidelines for preparing financial statements or government taxes follow ICAAT standards. However, the accounting in Thailand is different from other countries, but the process that are utilized are similar to GAAP (generally accepted accounting principles) of united States of America.

Till now, ICAAT has issued over sixteen accounting standards which govern accounting policies, EPS (earning per shares), Income statements, government taxes and various accounting changes which have been evolved in current years. Accounting in Thailand is governed by  the board of supervision for auditing practice. The board controls the accounting and auditing standards of Thailand and makes changes once it sees some types of improvements in existing auditing and accounting polices.

Therefore, let us have a quick look at accounting processes of Thailand:

1.  Corporate and the personal income tax in Thailand comes under the direct tax.

Unlike other countries, accounting in Thailand is a little bit different from other countries. In Thailand, both CIT (corporate income tax) and PIT (personal income tax) are parts of direct taxes. The corporate income taxes are levied on any company or partnership firms which are formed under the Company Act of Thailand. The rule are same for the companies even if they are from foreign countries. However, there are a few differences of accounting in Thailand for the companies which do have their origins in other countries e.g. the foreign companies need to fill up quarterly profit and loss statement, and they need to submit it to the governing bodies of Thailand.

2.  All the companies which operate in Thailand need to prepare records of transactions. These transactions can be any type e.g credit transactions or debit transactions. Also, all the companies need to prepare a list of transactions which are done to buy things from other countries. These rules are also applicable to any type of business entity that operates from Thailand e.g. limited companies, partnership firms, registered offices, regional offices and even for proprietary firms.

3.  All the records need to be checked by accountants.

All the transactions and business obligations are needed to be clearly monitored by professional accountants to rectify any type of error. Also, all the records should be submitted within four months after the end of a financial year.

4.  Accounting in Thailand for a company which is just incorporated.

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