The Essential Monthly Compliance Checklist for Foreign Businesses in Thailand
Successfully operating a business in Thailand extends far beyond making sales and managing your team. A crucial part of long-term success is consistently meeting your legal and tax obligations. Unlike many Western countries where tax is primarily an annual event, Thailand’s system requires several important monthly submissions.
For foreign owners, keeping track of these tasks is vital. Missing a deadline, even by a single day, can result in automatic penalties. This essential checklist will guide you through the key tasks to ensure your monthly compliance in Thailand is always on track.
Why Monthly Compliance is Crucial
In Thailand, deadlines are strict. The system is designed to collect tax revenue efficiently throughout the year. Failure to file or pay on time leads to fines and surcharges that can add up quickly. Consistent non-compliance can also flag your business for a potential audit from the Revenue Department. Staying diligent each month is the best way to maintain a clean record.
Your Essential Monthly Compliance Checklist
Here are the three core areas you must handle every single month:
1. Withholding Tax (WHT) Filing (PND.1,3,53)
When your company pays for certain types of services, you are required to “withhold” a small percentage of the payment and remit it directly to the Revenue Department.
- What to Withhold: Common examples include 3% on services (like marketing or consulting fees), 5% on rent, and 1% on transportation. For employee salaries, you withhold personal income tax based on their income level (PND.1,3,53).
- Key Forms: PND. 1 (salaries), PND. 3 (services paid to individuals), PND. 53 (services paid to other companies).
- Deadline: By the 7th of the following month (or the 15th if using the Revenue Department’s e-filing system).
2. Value Added Tax (VAT) Filing (ภ.พ.30)
If your company’s revenue exceeds 1.8 million THB per year, you must register for VAT. This involves a monthly report summarizing your sales and purchases.
- How it Works: You calculate the “Output VAT” (the 7% tax you collected from your customers) and subtract the “Input VAT” (the 7% tax you paid to your suppliers). If the result is positive, you pay the difference to the Revenue Department. If negative, you can claim a credit or refund.
- Deadline: By the 15th of the following month.
3. Social Security Fund (SSF) Contributions (สปส. 1-10)
This is a mandatory contribution for every employee on your payroll. It provides them with health insurance, disability benefits, and other social welfare.
- The Contribution: The company must deduct 5% from the employee’s salary (up to a maximum cap) and contribute an equal 5% itself.
- The Process: The total amount is submitted to the Social Security Office (SSO) each month.
- Deadline: By the 15th of the following month.
Pro Tips for Stress-Free Compliance
- Go Digital: Use the government’s e-filing systems. It’s more convenient and often provides an 8-day deadline extension.
- Keep Impeccable Records: Good bookkeeping throughout the month makes these filings simple. Disorganized records make them a nightmare.
- Partner with a Professional: The most effective way to manage monthly compliance in Thailand is to entrust it to a local expert.
Don’t let these administrative tasks slow down your business growth. A professional accounting partner like VRC can manage this entire monthly process for you, ensuring accuracy, timeliness, and peace of mind. Contact us to learn how we can help.
