According to a Finance Ministry regulation of 1st January 2016, small and medium-sized businesses who agree to follow the “one book accounting” practice will not be investigated for back taxes and enjoy tax breaks for two years.
There are 2 types of businesses that may get the benefits of no tax audit of the previous year and tax exemption and reduction:
1. Companies with income over 500 Million Baht (MB)
Except for tax audit backwards in previous year
Tax rate still same as 20%
(if companies are not in condition of type no.2 which income over 30MB+capital register over 5MB, they will be in this type)
2. SME businesses with income not over 30 MB and registered capital not over that 5 MB, if register to this rule with RD, they will get tax reduction by:
Year 2559 (2016) > Except Tax rate or 0%
Year 2560 (2017) > Decrease tax rate of income of Less than 300 K = Except Tax , Over than 300 K = Tax rate 10%
Since 2561 (2018) > Back to the normal tax rate of income of 1-300k =0%, 300k–1 MB=15%, Over 1 MB = 20%
They will also get the benefit of exception for tax audit backwards in previous year.
Note : The Revenue Department link to register for the project of one book accounting is https://edss.sys.rd.go.th/sme/index1.jsp. Registrations must be made between 15 January 2016 – 15 March 2016 by filling in the application form with the company’s information, such as: company name, address, Tax ID, date of establishment, business type of income from above items of no.1 or no.2, authorized director information (name, address, personal Tax ID)
The “no tax audit rule” for the previous year will start from year 2559 (2016). However, some cases of companies who have received notifications from the Revenue Department before this project was launched still have to clarify for those tax audit matters.