1) The PND.50 Trap (Annual Tax Return)
Filing late isn’t just about the fine; it puts a “flag” on your company file for future scrutiny.The Risk: Penalties, surcharges (1.5% per month), and a higher likelihood of a full audit.
- The Risk: Penalties, surcharges (1.5% per month), and a higher likelihood of a full audit.
- The Fix: Ensure your accountant has all documents now to file on time.
2) Transfer Pricing Disclosure (Related-Party Transactions)
Mandatory for companies with revenue ≥ 200 Million THB.
If your company meets the revenue threshold and has “related parties,” you must file the Transfer Pricing Disclosure Form.
- The Criteria: You are required to file if:
- Revenue: Your total revenue is 200 Million THB or more.
- Relationship: You have a “Related Party,” defined as direct or indirect shareholding of 50% or more.
- Pro Insight: Even if you had zero transactions with your related company this year, if you meet the criteria, you still must file the form. Failure to do so triggers a fine of 200,000 THB.
3) The “25% Rule” on Mid-Year Estimates (PND.51)
The Revenue Department allows a 25% margin of error on your profit estimate. Exceeding this normally triggers a 20% surcharge
✅ Strategy First: Prevention “No one knows your business better than you.” An estimate shouldn’t be a random guess. Plan your forecast using real business logic. If you are targeting a Q4 growth spurt, factor it in now. Accurate forecasting is your best defense.
🛠️ The Fix: What if a “Big Deal” Happens? Sometimes business is too good. You might close a massive, unexpected deal in December that pushes your profit way beyond your initial forecast.
The Solution: We can file an Additional (Amended) PND.51 before or alongside your annual tax return. This corrects the record immediately and generally avoids the heavy surcharge.
4) The Cross-Check: PND.54 vs. PP.36
This is the #1 automated red flag.
If you paid an overseas vendor, you must generally file:
- PND.54 (Withholding Tax)
- PP.36 (VAT)
5) Entertainment Expenses (The 0.3% Cap)
You cannot deduct unlimited client dinners. The limit is 0.3% of your gross revenue or paid-up capital (whichever is higher), capped at 10 Million THB.
Action: Review your General Ledger. Any amount above this must be adjusted to avoid penalties.
6) High Accumulated Retained Earnings
Does your company hold a significant amount of “Accumulated Profit” (Retained Earnings) without paying a dividend?
- The Issue: Holding large amounts of profit for extended periods can trigger questions regarding your capital structure and cash flow management.
- Recommendation: It is often advisable to pay out a dividend by year end to properly align your equity structure.
- Need Guidance? If you are unsure of the correct legal procedure or tax implications, please contact us for a review.
🎁 Exclusive Offer: Complimentary Year-End Review
(Valid for clients who switch to our accounting service )
Don’t wait for the audit letter. We will review your 2025 Financial Statement draft for :
✅ Balance Sheet clean up
✅ PND.54/PP.36 mismatches
✅ Expense classification errors
✅ Dividend strategy
