In Thailand, company annual accounts and financial closing are mandatory legal requirements for all registered companies. This annual accounting process ensures financial transparency and corporate compliance, under the strict supervision of the Department of Business Development (DBD) and the Revenue Department.
Companies must respect two key statutory deadlines following the end of their fiscal year:
- 120 days to finalize, approve, and submit their audited financial statements to the DBD
- 150 days to file their corporate income tax return (PND 50) with the Revenue Department
Although these processes are often handled simultaneously in practice, they remain subject to distinct legal timelines. Non-compliance may lead to fines, difficulties in renewing work permits, or obstacles in banking and administrative procedures. Whether you operate a local SME, a BOI-promoted firm, or a foreign branch, this article outlines all the required steps to ensure a compliant and smooth annual closing.
Which Companies Must File Annual Accounts in Thailand?
The obligation to complete annual financial closing applies broadly to all legal entities operating under Thai jurisdiction. This includes Thai limited companies (Thai Co., Ltd.), representative offices, and branches of foreign companies. Additionally, BOI-promoted entities: and fully or partially foreign-owned companies must also comply. These businesses must prepare, audit, and submit financial statements in accordance with Thai regulations regardless of their size or revenue. Even dormant companies with no activity must submit reports, underscoring the strictness of Thai corporate compliance law.
Preparing Annual Financial Statements in Thailand
Companies must prepare four key financial reports according to Thai Financial Reporting Standards (TFRS). These include: a Statement of Financial Position (Balance Sheet), a Statement of Comprehensive Income (Profit & Loss), a Cash Flow Statement and a Statement of Changes in Equity. Notes on accounting policies and financial assumptions must also be included.
To ensure full compliance with TFRS, it is strongly recommended that the documents are prepared or reviewed by licensed accountants or professional firms experienced in Thai regulations. Companies must also format reports to meet local guidelines and include accurate translation if they use dual-language documents.
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Annual General Meeting (AGM) Requirements in Thailand
Companies are required to organize an Annual General Meeting (AGM) within four months after the end of their fiscal year. During this meeting, shareholders must approve the audited financial statements, appoint or re-appoint the auditor, and discuss key issues such as dividend payments, director appointments, and corporate strategy.
The AGM minutes must be formally recorded and signed, as they are essential for both regulatory compliance and internal governance. Holding an AGM is a legal requirement and skipping it can result in substantial fines.
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Filing Annual Financial Statements with the DBD
Once the AGM has been held and the financial statements approved, companies must submit them to the Department of Business Development (DBD). Late submissions may incur penalties of up to 200,000 THB, and directors may also be personally fined.
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Filing Corporate Income Tax (Form PND 50)
The Revenue Department requires all companies to submit the PND 50 form, which reports their annual income and calculates corporate tax liabilities. The deadline is the same as for financial closing: 150 days after the fiscal year-end. Tax must be paid in full by this date to avoid surcharges or legal action. Companies must ensure consistency between financial statements and tax returns and any discrepancies could trigger an audit or investigation. Working with a tax advisor helps ensure the accuracy of filings and efficient tax planning.
Penalties for Non-Compliance
Failure to meet the legal requirements for annual closing can lead to serious consequences. Fines for companies may reach up to 200,000 THB for late financial submissions, and company directors may be individually fined up to 50,000 THB for missing deadlines or failing to organize an AGM. These penalties are enforced by the DBD and Revenue Department and can also negatively affect visa renewals, banking access, BOI incentives and the reputation of the business.
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Tips for a Smooth Annual Closing
The best way to avoid delays and penalties is to maintain accurate monthly bookkeeping and stay proactive. Digitizing receipts, invoices, and payroll records ensures that information is readily available during audit preparation. Setting reminders for AGM planning, tax form submissions and audit scheduling can help businesses remain compliant. Partnering with a knowledgeable accounting and advisory firm ensures that responsibilities are properly handled and deadlines are met.
At Gorioux Siam, we offer full support for businesses navigating Thailand’s annual closing process. Our bilingual team combines local Thai knowledge with international expertise, making it easier for foreign and local companies to comply with all regulations. We handle accounting, auditing, and tax filing, ensuring clients avoid penalties and gain peace of mind. Contact us today for a personalized consultation on how we can support your year-end process.