A foreign-owned Thai entity generally has Thai accounting, financial statement and tax responsibilities based on its Thai legal entity and activities.
Foreign ownership does not move those obligations to the overseas parent. The local books need to capture the Thai company's sales, costs, bank movements, taxes, assets, liabilities and related-party transactions, then support the required filings and annual close.
1. Keep accounting records in Thailand
The ledger should reflect what the Thai company actually did during the month. A useful file includes sales invoices, purchase invoices, expense receipts, credit notes, bank movements, petty cash, receivables, payables, payroll, fixed assets, inventory or project costs, shareholder funding and foreign-currency balances.
Keep the document behind each entry. For a head-office recharge, that normally means the agreement, invoice, calculation and evidence of the underlying cost or service—not just a bank transfer. Bank reconciliations should explain every unmatched item instead of carrying a suspense balance forward.
The Thai statutory ledger and an overseas management pack can use different layouts. They still need a controlled mapping so that the parent can trace reported figures back to the local books.
2. Appoint the appropriate accounting professional
Decide who will maintain the records, prepare tax schedules, coordinate the annual close and communicate with the company's appointed auditor. This may be an internal finance team, an outsourced accounting firm or a combination of both.
Before work starts, document who is responsible for source documents, bookkeeping entries, tax-return preparation, financial statement preparation, approvals and statutory submissions. Confirm any Thai qualification, signing or appointment requirement that applies to the entity and the work being performed rather than relying on a generic service description.
3. Close the accounts and prepare annual financial statements
The accounting period and year-end drive the close timetable. The team should reconcile bank, customer, supplier, payroll, tax, fixed-asset and intercompany balances; post accruals and prepayments; review foreign-currency balances; and document unusual transactions before financial statements are prepared.
The annual financial statements are a Thai statutory deliverable. A group reporting pack prepared under a parent's reporting framework may sit beside them, but it does not automatically replace the local statements or local evidence.
Check the current filing and approval route with the Department of Business Development (DBD) online services before submission. The DBD page is the appropriate starting point for current e-filing information.
4. Coordinate statutory audit where required
Whether an audit is required depends on the entity and the rules that apply to it. Establish that position early, then agree the timetable with the appointed independent CPA.
Accounting staff prepare the trial balance, schedules and evidence. The independent auditor performs the audit and signs the opinion. WMC's audit coordination work can organise the records and questions; it does not turn accounting preparation into independent audit work. See also the statutory audit page for the audit service scope.
5. File applicable corporate tax and other returns
Tax work follows the transaction profile, not the shareholder's passport. Depending on the company's activities and registrations, the monthly and annual work may include VAT, withholding tax, corporate income tax, payroll-related filings and related supporting schedules.
The Revenue Department's corporate income tax guidance and its current forms and instructions should be checked for the relevant accounting period. Use the tax compliance and tax filing pages when the company needs a review of its filing calendar.
6. Keep accounting evidence for overseas management
Overseas directors usually need a short English report, not a second set of unconnected books. A monthly management pack can include the profit and loss account, balance sheet, cash position, aged receivables and payables, tax movements, intercompany balances, budget variance and an open-issues list.
Set the mapping once, then reconcile it each month. If the parent uses a different currency or chart of accounts, retain the exchange-rate basis, mapping and reconciliation. Those three items are often more useful during group review than a long narrative.
7. Foreign ownership does not replace Thai accounting rules
A foreign parent may set group policies, reporting dates and approval limits. The Thai entity still records its own transactions and follows the local requirements that apply to its legal form, business activities, tax registrations and accounting period.
For that reason, a head-office ledger alone is rarely enough. It may omit Thai tax invoices, local withholding certificates, statutory expense support, local payroll details or balances held in a Thai bank account.
Common accounting problems after a foreign company enters Thailand
| Problem | What to check first |
|---|---|
| Missing sales or purchase documents | Compare the ledger to bank entries, invoice sequences, contracts and VAT records. |
| Head-office payments not reflected locally | Identify who paid, what the cost was for, whether the Thai entity owes the parent and what support exists. |
| Intercompany balances do not agree | Exchange statements with the group company and reconcile invoice, payment, currency and cut-off dates. |
| Bank reconciliations are late | List old unreconciled items and assign an owner and resolution date; do not roll them forward without explanation. |
| Expense support is unclear | Match the receipt to the business purpose, approver, payment and tax treatment. |
| Accounting and tax figures do not tie | Prepare a bridge for non-deductible items, timing differences, VAT, withholding and tax adjustments. |
If the previous records are incomplete, start with an accounting cleanup review before the next tax return or year-end close.
Monthly / Year-End Responsibility
| Timing | Accounting / finance team | Director or management | External accountant / auditor |
|---|---|---|---|
| Monthly | Collect documents, post entries, reconcile bank and ledgers, prepare tax schedules. | Approve payments, resolve open items and confirm unusual transactions. | Review agreed schedules or prepare filings under the engagement scope. |
| Before year-end | Clear old balances, prepare fixed-asset and intercompany schedules, assemble evidence. | Confirm provisions, commitments, related parties and reporting needs. | Agree the PBC list and audit timetable where an audit is required. |
| Year-end | Close the ledger and prepare the financial statements and supporting schedules. | Approve the statements and authorise the required submissions. | Perform the independent audit and issue the opinion where appointed. |
Official References
- Department of Business Development: Online services and e-Filing
- Revenue Department: Corporate Income Tax
- Revenue Department: Value Added Tax
- Revenue Department: Withholding Tax
Review the Thai entity's accounting setup
Bring the legal-entity details, tax registrations, latest trial balance and reporting requirements. The first review should identify missing records and the next close date.
Foreign-owned company accountingScope note: Use this guide as a starting point for a current review. The entity, activities, registrations, contracts and Thai rules determine the actual treatment.