Financial Statment - Late Submission in Thailand, for company limited, public company, limited partnership, joint venture around Thailand Bangkok and Phuket

Late submission of financial statement in Thailand
(for company limited / public company / limited partnership / joint venture )

Under Accounting Act B.E. 2543 Section 11 Paragraph 1, the company will be responsible to pay for the penalty upon late submission of Financial Statements to the government department which this fault has mistake to the company which needs to pay penalty of not exceeding Baht 50,000 and the position of Managing Director still has the responsibility on penalty for another Baht 50,000.

In the usual practice, the company can submit the Financial Statements and pay the penalty at the Department of Business Development (DBD) according to the below rates:

Penalty Rate

1. Penalty rate for late submission not exceeding 2 months.

No.	Person Having the duty to keep account	Penalty Rate		Total
No.	Person Having the duty to keep account	Person Having the duty to keep account	Managing Director / Managing Partner	Total
1	All kind of entities except Joint Venture	600	600	1,200
2	Joint Venture	600	-	600

2. Penalty rate for late submission over than 2 months but not exceeding 4 months

No.	Person Having the duty to keep account	Penalty Rate		Total
No.	Person Having the duty to keep account	Person Having the duty to keep account	Managing Director / Managing Partner	Total
1	Limited Partnership	1,200	1,200	2,400
2	Company Limited	2,400	2,400	4,800
3	Foreign Company Limited	6,000	6,000	12,000
4	Public Company Limited	12,000	12,000	24,000
5	Joint Venture	6,000	-	6,000

3. Penalty rate for late submission over than 4 months but not exceeding 6 months.

No.	Person Having the duty to keep account	Penalty Rate		Total
No.	Person Having the duty to keep account	Person Having the duty to keep account	Managing Director / Managing Partner	Total
1	Limited Partnership	2,400	2,400	4,800
2	Company Limited	4,800	4,800	9,600
3	Foreign Company Limited	12,000	12,000	24,000
4	Public Company Limited	24,000	24,000	48,000
5	Joint Venture	12,000	-	12,000

4. Penalty for late submission over than 6 months OR not yet submission of previous financial statement

No.	Person Having the duty to keep account	Penalty Rate		Total
No.	Person Having the duty to keep account	Person Having the duty to keep account	Managing Director / Managing Partner	Total
1	Limited Partnership	3,600	3,600	7,200
2	Company Limited	6,000	6,000	12,000
3	Foreign Company Limited	18,000	18,000	36,000
4	Public Company Limited	36,000	36,000	72,000
5	Joint Venture	18,000	-	18,000

Anyway, if the company did not take further actions regarding its Financial Statements, the police department will issue the Subpoena Letter and send to the company address to invite the Managing Director to come and meet the police within the date and time specified on the letter. In this letter, the name of the responsible police including their mobile phone number will be specified for convenience of the company to make appointment with the police. From my experience in assisting our clients, the police will request the company to pay penalty to DBD office of the province where the company is located but for Bangkok area, penalty will be paid to the Ministry of Commerce in Nonthaburi and then bring the receipt for the penalty’s payment to show for close the case (not send to court).

In issuance of the letter, police will issue during March to April by issuing it two times. In case the company will not contact back, police will send the case to court within May. The court will decide on this case and this court’s decision will expire within one year.

Remark:
For this late submission, there’s still have the penalty for corporate income tax (CIT) if did not submit Financial Statements with CIT to the Revenue Department and also maybe there’s still have fault from the case of late AGM.

Q&A

Q1: Our office just receive a First notice from Police Dept (Royal Thai Police), asking the directors of ..(Our)... Company to meet on 28/12/2011. Wish to ask your opinion that should we send someone to explain with Police Dept that we never start any business and we can't even contact with their directors so far, & what will happen by then ?

Panwa: Of course you should send someone to meet the police as requested follow their notice BUT the reason "your company never start any business and can't contact with the director" is not appropriate due to they want you to clean up and filing the late of financial statement and also pay the penalty, anyway you should send someone with authorization letter (issued by your director with company's affidavit and copy of ID card or Passport) to meet and negotiate with the police first and then discuss with them(police) how to solve it, actually they will ask you the time when you can clean up and aubmission.

Acutally I have a bit suprise that police send you the notice so early, normally they will issue the first notice around end of March and then the 2nd notice around end of April.

Anyway I can brief you a rough that police did in the past; they treated to one of my client whom did not file the financial statement of year 2009 (2542) for your further consideration.

around Marh 2011, police will issue you the first notice.
around April 2011, police will issue you the second notice (case of ignore the first notice).
within end of May 2011, the case will be submited to the court proceedings(case of ignore the second notice).
when already jude by court the legal age of your guilt is one year that's mean during the unexpire period of legal age your director may be arrest when commeing to Thailand at air port or anywhere in Kingdom of Thailand.

Q2: Recently I received a letter from Department of Biusiness Development informed that my company did not submit account year-ending 2543 (see enclosed). I tried to call my accountant but unfortunately I couldn’t find her. Fyi, I have received an email from my accountant May this year for me to pay the service fee and I thought everything was done and had paid accordingly without getting a copy of the document.

Bearing in mind something fishy may be going on with this accountant so I need to find another way out. I found your company in google search and convinced that Panwa Group can provide a solution for me. I would like, therefore, to make below enquiry.

Option 1

Clear the late submission issue with Revenue Dept, including paying the fine and submit the account for year 2543. Pls note that all my company document (company registration etc) including company stamp was with my accountant and I don’t have anything with me.

Panwa:

Service for Clear the late submission issue with Revenue Dept, including paying the fine and submit the account for year 2543, our fee is (free of charge, see scope under service of item 1.2)

Service for duplication with Department of Business Development (DBD) of all company document (company registration etc) including company stamp, our fee is approximate Baht 2,000. But for the case you need to duplicate documents at Revenue Department (RD) such as Tax ID card, VAT certificate the fee will be informed you later due to the procedure is different.

Yearly accounting fee. Pls note I am the only director and staying in Bangkok all year long.

Panwa: Our fee is Baht 15,000 covering your requested on option 1 “Clear the late submission issue with Revenue Dept, including paying the fine and submit the account for year 2543” and below:

Preparation of Yearly Audit Financial Statement with certified and audited by Certified Public Accountant (CPA, Thailand) and issue auditor's report in English version.

Preparation for accounting records such as Journal, General Ledger, Trial Balance and Financial Statements and issue Financial Statement in English version.

Preparation tax service for Yearly Corporate Income Tax return (PND.50 form)

Preparation of secretarial documents consisted of: Application form for Company's Information Submission (Sor.Bor.Chor.3) Form, Shareholders’ List (Bor.Oor.Jor.5) Form.

We will be applied as chartered accountant (with bachelor degree in Major of Accounting) to Ministry of Commerce (MoC) as accountant of your company.

Option 2

Same as 1 in option 1

Panwa: Same as above answer.

Closing the company immediately.

Panwa: For scope and fee for company liquiation (closing) please visit our website at: http://www.panwagroup.com/closingcompany.htm

Q3; I just got the letter issuded by DBD to remind me for the late submission of the financial statement of year ended Dec 31, 2010 which actually I never file anything since incorporated in year 2009, please let me know the provision cost including your fee.(obtaing dated October 12, 2011)

Panwa: I assume that you company is not falling in VAT system.

Details	Penalty	Service Fee
Year 2010
- Penalty for late submission at DBD	9,600	- 0 -
- Penalty for late submission at RD for yearly CIT	2,000	- 0 -
- Penalty for late submission at RD for half-year CIT	2,000	- 0 -
- Service fee for Accounting, Auditing and CIT		15,000
Year 2009
- Penalty for late submission at DBD	- 0 -	- 0 -
- Penalty for late submission at RD for yearly CIT	- 0 -	- 0 -
- Penalty for late submission at RD for half-year CIT	- 0 -	- 0 -
- Service fee for Accounting, Auditing and CIT		15,000
Total Provision Cost	13,600	30,000

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For more information, please feel free to contact us:
Phone Nos.: +66 2 933 6121, +66 2 933 6122, +66 2 933 5601
(for call inside Thailand use 0 instead of +66)
Fax: +66 2 933 6120
Email: mgr@panwa.co.th
Please CC: to our alternate email: panwagroup@gmail.com