All persons about to start a business must register with the Revenue Department. In addition, if annual turnover exceeds 1.8 million Baht registration for ValueAdded Tax is also required. Withholding Tax on salaries and services as well as VAT filings must be submitted and settled to the Revenue Department ona monthly basis.

Tax rate

Currently corporate tax is at a flat rate of 20% of net profits, tax on dividends is 10% and VAT is at 7%. Personal income tax varies according to income, maritaland parental status with a maximum of 35% for annual income exceeding 4 million Baht (US$ 130,000) after deductions and allowances.

Accounting and financial reporting

Generally, the basic accounting principles in the U.S. and Europe are recognized and accepted in Thailand. The Institute of Certified Accountants of Thailand isthe authoritative group promoting the application of generally accepted accounting principles (GAAP). In addition, however, the basic financial statements(balance sheet and income statement) must be audited by a Thai CPA annually.