Late Tax Return

A fine of THB 2,000 applies for failure to file a tax return by the deadline. Late payment penalties (below) also apply.

If a taxpayer fails to file a return, additional penalties apply. For failure to file the annual return, a penalty equal to 2 times the amount of tax payable is imposed. For failure to file the mid-year return, a 20% surcharge on half the tax payable for the year is imposed

Intentionally failing to file in an attempt to evade tax will result in a fine of up to THB 5,000, and imprisonment of up to 6 months.

Late Tax Payment

Late tax payments, including the mid-year payment, are subject to a penalty surcharge of 1.5% of the tax due per month or part of a month applied from the day after the deadline until paid. If the taxpayer has received an extension from the tax authorities, the surcharge is reduced to 0.75% as long as the payment is made by the extended deadline.

The total surcharge penalty may not exceed the tax due.

Filing of an Incorrect Return

The filing of an incorrect annual return resulting in an understatement of the tax liability will result in a penalty equal to the outstanding tax amount due. Late payment penalties (above) will also apply.

If the estimated tax liability made in the mid-year return is less than 75% of the actual tax liability for the year, a 20% surcharge on the outstanding mid-year tax amount due will be imposed. Late payment penalties (above) will also apply.

For cases of tax evasion through fraudulent means, a penalty of THB 2,000 up to THB 200,000 will be imposed, as well as imprisonment of 3 months up to 7 years.

Tax Amnesty Program

In January 2016, the government announced a tax amnesty program, which provides for an exemption from additional corporate tax, value added tax, specific business tax and stamp duty tax, and any related penalties and fines for 2015 and prior tax years.

The program is available for Thai companies with annual gross revenue up to THB 500 million in the tax year ending on or before 31 December 2015, subject to the following conditions:

• The company is not under a tax investigation initiated prior to 1 January 2016;
• The company has not used or issued fake invoices;
• The company is not subject to a legal inquiry or under prosecution; and
• Certain other conditions.

In order to take part in the program, taxpayers were required to submit a notice and application to the Revenue Department. Once accepted, the company is required to meet a number of compliance conditions to remain eligible, including:

• Timely filing of relevant tax returns and correctly paying taxes due;
• Maintaining accounting records and financial statements in accordance with accounting law; and
• Never taking any tax avoidance actions.

Effective 26 March 2019, a tax amnesty program has been re-introduced for small- and medium-sized companies and partnerships. The program covers outstanding corporate income tax, value added tax, specific business tax, withholding tax, and stamp duty for 2016 and later tax years. The program is available to corporate taxpayers meeting the following conditions:

• Revenue in the last accounting period ending on or before 30 September 2018 did not exceed THB 500 million;
• The tax return for last accounting period referred to above has been filed before 26 March 2019; and
• No criminal offense has been committed and investigated prior to 26 March 2019.

Qualifying taxpayers may be exempted from penalties and surcharges on outstanding tax due, as well as from criminal liability. The taxpayers intending to participate in the program are required to register and pay the outstanding tax due by 30 June 2019.