Filing Financial Statements Late

Keywords: Mazars, Thailand, Legal, DBD, MOC, AGM, Revenue Department

16 July 2013

An Annual General Meeting (“AGM”) must be held within four months of the fiscal year end in order to consider and approve the audited financial statements and the financial statements must then be filed within 1 month from the date of this meeting.

Penalties for not filing the audited financial statements with the DBD within the prescribed period of time are incremental, calculated on the basis of the number of months late. The penalty, not exceeding THB 100,000 is levied on both the company and its directors.

Further, the penalties for not arranging the Annual General Meeting to approve the audited financial statements within 4 months after the fiscal year end are:

• Company - a fine not exceeding THB 20,000
• Director(s) - a fine not exceeding THB 50,000

Please note that all the above penalties are the maximum penalties as prescribed under the law. The actual fine would depend on the consideration of the Department of Business Development, which might be lower.

Tax Impact of Not Preparing the Financial Statements

As per the Revenue Code, in the case where the company does not prepare audited financial statements in order to support the tax calculation and filing of the annual and half year corporate income tax returns, the Revenue Department shall have the authority to assess income tax at the rate of 5 per cent of gross income before deduction of any expenses or gross sales before deduction of expenses of the accounting period, whichever is higher.

If gross income before deduction of expenses or gross sales before deduction of expenses cannot be determined, the Revenue Department shall have the authority to assess by comparing with the gross amount of the previous accounting period. If the amount of the previous accounting period cannot be determined, the Revenue Office shall assess as it deems appropriate.