It will soon be time to file your company’s semi-annual tax return (HALF YEAR REPORT) or Por Ngor Dor 51 (PND 51) in Thailand. If your business formation was in 2023 or before, and you choose the December 31 accounting period, your semiannual return is due on Wednesday, August 31, 2023. You will be liable to pay fines in case of delay in filing the deadlines. If you are one of our clients already using Konrad Legal’s Monthly Audit and Taxation Service can ignore this article. Be assured, your tax returns are already being handled by our licensed accounting team.
If the incorporation of your firm was after January 1, 2023, you must file the PND 51, even if the time is less than 12 months. A licensed accountant must prepare the Por Ngor Dor 51 (PND 51). Moreover, the company must forecast annual net profit and tax liability and pay half of the expected tax amount within two months of the end of the first six months of the accounting period.
The “Half Year Tax Return (PND.51)” is a prepayment computation based on the tax due on the year’s forecasted net earnings. Therefore, prepay the prepaid tax on that net profit and submit the PND 51 with that tax amount. Henceforth, at the end of the year, the tax you pay will add credit to your annual tax liability.
If you fail to file your half-year tax return or understate net earnings by more than 25% of full-year net profits without reasonable cause, your company may be subject to pay an additional 20% tax on the amount of the tax gap!
Therefore, it’s critical that the semi-annual tax return be as near to the annual net profit as possible.
Do you need to File a Half-Yearly Tax Return in Thailand?
If you or your business falls in any of the categories mentioned below, you will hold the liability to fill up PND 51 in Thailand for half yearly tax return in Thailand –
- A company or juristic partnership incorporated under Thai law
- Limited company
- Public company limited
- Limited partnership
- Registered partnership
- A company or juristic partnership incorporated under foreign laws that:
- Conduct business in Thailand
- Carries on business in Thailand and in other places including Thailand
- Conduct business in other places including Thailand, in case of carriage of goods or carriage of passengers
- Has an employee, an agent or a go-between for carrying on business in Thailand and received income or profits in Thailand
- Does not conduct business in Thailand, but receives assessable income under section 40 (2)(3)(4)(5) or (6) of the Revenue Code which is paid from or in Thailand
- Distributes profit from conducting business in Thailand to other countries
- A business operating in a commercial or profitable manner by a foreign government, organization of a foreign government, or any other juristic person established under a foreign law.
- Incorporated and unincorporated joint ventures
- A foundation or association conducting revenue-generating business, but does not include the foundation or association as prescribed in Section 47 (7)(b)
- A juristic person who is considered as a company or juristic partnership by the Minister and approved by the Royal Thai Government Gazette.
Standard Tax Rates for Half-Yearly Tax Filing in Thailand
Unless a company registered in Thailand qualifies for a lower corporate income tax rate for a specific reason, it is subject to the regular rate of corporate income tax.
The corporate tax is a flat rate of 20% for a company or partnership with a registered capitalization of more than 5 million Baht.
Companies that qualify as Small and Medium Enterprises (SMEs) are eligible for the following corporate tax rates:
| Net Profit Amount (Baht) | Tax Rate (%) in 2022 |
| 1 – 300,000 THB Net Profit | Exempt |
| 300,001 – 3,000,000 THB Net Profit | 15% |
| 3,000,001 and over | 20% |
For the 2023 financial year and onwards, an SME must have a paid-up capitalization of no more than 5 million Baht at the end of the accounting period. Additionally, the gross annual revenue should be no more than 30 million Baht for the accounting period.
On some types of assessable income (e.g. interest, dividends, royalties, rentals, and service fees) paid from or in Thailand, a foreign corporation not carrying on business in Thailand is liable to a final withholding tax (WHT). The tax rate is normally 15%, except for dividends. However, for dividends, it is 10%, and additional rates may apply depending on the terms of a Double Tax Treaty (DTT).
How to Fill Up PND 51 in Thailand?
Filling up the PND 51 form in Thailand needs local accounting expertise. Note that, you must have knowledge of the Thai Accounting Standards to proceed with this. Therefore, for this you may hire some full-time local Thai accountant. Alternatively, you may em-panel an expert Thai Accounting and Taxation team or agency. Any type of discrepancy in your PND 51 filing can lead to various charges from the Revenue Department of Thailand. As a guide, let us give you a walk-through of the process.
Documents Required for PND 51 filing in Thailand
- Expense and Revenue report for the entire year of 2023. It must have supporting explanations for reasons if you expect your business to be cash-flow negative.
- Report for actual sales and expenses for the first six months of the year (January to June 2023).
- Estimated revenue and expenses reports for the months of July to December 2023.
- Documents certifying your pay, leasing expenditures, and other expenses, as well as invoices issued under the firm name and address.
- A copy of PND.50 of 2022 (2565) to the Thai Revenue Department.
How will we do the PND 51 Filing for you?
- You provide us with six-month projections (July to Dec 2023).
- We will follow up on any missing or additional information.
- Our accountants prepare your tax return form and notify you of the amount of tax payable. Henceforth, they submit it to you for approval and signature. We will not file the mid-year tax return unless you give us explicit permission.
- On approval of your application, you must provide us with a company check. The check should be payable to the Revenue Office in the amount of the tax due. No check is needed if your estimate was a net loss. Note that, a personal check is not accepted by the Revenue Office.
- By August 31, 2023, we will submit your PND 51 to the Thai Revenue Department.
The Bottomline
Konrad Legal cannot anticipate net profits for your firm because sales data, business expenses, cost of products and services, and business cycles are all better known by you, as the management or director.
We often recommend our accounting clients to slightly exaggerate sales. Alternatively, they may somewhat underestimate total expenses. It is because, under the Revenue Code, profits can be understated by no more than 25% of actual profits. If by any chance you estimate lower yearly earnings at the semiannual return and your profit comes out to be 25% or higher than your forecast at the end of the year, you will be forced to pay an additional 20% tax on the difference between forecasted and actual tax. For better suggestions and assistance in filing the PND 51 in Thailand, book your free online consultation today. Alternatively, you may email us at [email protected].
