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Penalty Rates
Late or Unfiled Financial Statements
Penalty Rates
Late or Unfiled Financial Statements
Penalty Rates
Late or Unfiled Financial Statements
Penalty rates for filing financial statements late
The legal basis is section 30 together with section 40 of the Accounting Act B.E. 2543 (2000), under which both the juristic person and the managing director or managing partner are fined. The figures in the table are the amount for each party. What you actually pay is the sum of the two.
Limited companies and registered partnerships
Up to 2 months late 1,000 baht on the juristic person and a further 1,000 baht on the director, 2,000 baht in total
Over 2 up to 4 months 4,000 baht on the juristic person and a further 4,000 baht on the director, 8,000 baht in total
Over 4 months, or not filed at all 6,000 baht on the juristic person and a further 6,000 baht on the director, 12,000 baht in total
Public limited companies and foreign juristic persons
Up to 2 months late 2,000 baht on the juristic person and a further 2,000 baht on the director, 4,000 baht in total
Over 2 up to 4 months 24,000 baht on the juristic person and a further 24,000 baht on the director, 48,000 baht in total
Over 4 months, or not filed at all 36,000 baht on the juristic person and a further 36,000 baht on the director, 72,000 baht in total
Joint ventures The fine falls on the juristic person only: 2,000 baht, 24,000 baht and 36,000 baht over the same periods. There is no separate fine on the director.
Source: penalty rate table, Department of Business Development
Filing the BOJ 5 list of shareholders late is fined at 2,000 baht on each director authorised to sign and bind the company. The company itself is not fined. This fine does not increase with the number of months of delay.
Failing to hold the shareholders meeting within 4 months is a separate offence from filing the financial statements late
A limited company has 3 deadlines that run one after another, not a single deadline
1. The financial statements must be audited by a Certified Public Accountant and then submitted to the annual general meeting for approval within 4 months from the end of the accounting period, under section 1197 of the Civil and Commercial Code. For a period ending 31 December, the meeting must therefore be held by 30 April.
2. The BOJ 5 list of shareholders must be filed within 14 days from the date the general meeting was held.
3. The financial statements must be filed with the Department of Business Development within 1 month from the date the general meeting approved them, under section 11 of the Accounting Act B.E. 2543 (2000).
The point most often misunderstood Deadlines 2 and 3 run from the date the meeting was actually held, not from the end of the accounting period. If the meeting slips to July, the BOJ 5 deadline is 14 days from that meeting date, and the financial statements deadline is 1 month from that meeting date.
The consequence is this: if the meeting is held late but the financial statements and the BOJ 5 are then filed within the deadlines counted from the meeting date, there is no late-filing fine on the financial statements and no fine on the BOJ 5. Only one offence remains, which is not having submitted the statements to the general meeting within 4 months.
Registered partnerships, foreign juristic persons and joint ventures are not affected by any of this, because no general meeting resolution is required. They file the financial statements within 5 months from the end of the accounting period. For a period ending 31 December, that means by 31 May.
Penalty rates where the statements were not approved at a meeting within 4 months
Failing to submit the balance sheet for approval at a general meeting within 4 months: 6,000 baht on the company, and 6,000 baht on each director authorised to sign and bind the company.
Failing to have the balance sheet audited by an auditor: 1,000 baht on the company, and 1,000 baht on each director authorised to sign and bind the company.
The words each director are what makes the total escalate. It is not one fine that the directors share between them. Every director authorised to sign and bind the company is fined the full amount individually. With 4 authorised directors, the directors part alone comes to 24,000 baht.
Source: the comparative fine rate table annexed to the Department of Business Development regulation. The offence arises under section 1197 of the Civil and Commercial Code together with the Act Prescribing Offences Relating to Registered Partnerships, Limited Partnerships, Limited Companies, Associations and Foundations B.E. 2499 (1956), section 18(2) for the company, with a ceiling of 20,000 baht, and section 25 for the responsible director, with a ceiling of 50,000 baht.
BOJ 5 list of shareholders filed more than 14 days after the meeting
The BOJ 5 must be filed within 14 days from the date of the annual general meeting. If it is not filed on time, each director is subject to a comparative fine of 2,000 baht.
This fine falls on the directors individually, not on the company, and it does not increase with the number of months of delay. That is different from the financial statements fine, which rises in steps the later you are.
A practical observation The 14-day deadline is much shorter than the 1-month deadline for the financial statements, so many companies file the statements on time and forget the BOJ 5 without realising it. The safest approach is to file the BOJ 5 on the same day as the financial statements, provided the statements are filed within 14 days of the meeting.
Three common situations, with the totals side by side
Every case below assumes a limited company with an accounting period ending 31 December and 2 directors authorised to sign and bind the company.
Case 1. The meeting is held on time by 30 April and the BOJ 5 is filed on time by 14 May, but the financial statements are filed on 15 June, which is less than 2 months past the 30 May deadline. The fine is 1,000 baht on the person with the duty to keep accounts and 1,000 baht on the managing director, 2,000 baht in total.
Case 2. The meeting slips to 20 July, the BOJ 5 is filed on 1 August and the financial statements on 10 August. Both are within the deadlines counted from the meeting date, so there is only one offence: holding the meeting late. That is 6,000 baht on the company and 6,000 baht on each of the 2 directors, 18,000 baht in total. There is no late-filing fine on the statements and no fine on the BOJ 5.
Case 3. The meeting slips to 20 July and then nothing happens. The statements are filed in December, more than 4 months after the meeting, and the BOJ 5 is never filed. There are now three offences: late financial statements at 6,000 plus 6,000, which is 12,000 baht; the late meeting at 6,000 plus 12,000, which is 18,000 baht; and the BOJ 5 at a further 4,000 baht. The total is 34,000 baht.
Compare case 2 with case 3: a difference of 16,000 baht, with the meeting equally late in both. What differs is whether the filings followed promptly afterwards. That is why, once you know the meeting will be late, the right response is to hold it and file immediately, not to let it drift on the basis that it is late anyway.
Filing PND 50 late: a separate fine from the Revenue Department
PND 50 must be filed within 150 days from the end of the accounting period. For a period ending 31 December, that falls at the end of May. It is a different deadline from the Department of Business Development financial statements, set by a different agency. Filing with one does not mean the other is taken care of.
Filed up to 7 days late criminal fine of 1,000 baht
Filed more than 7 days late criminal fine of 2,000 baht, which is the statutory ceiling per return
Not attaching the financial statements to the return: a further criminal fine of 2,000 baht
If there is tax to pay, a surcharge of 1.5% per month of the tax payable also applies. Part of a month counts as a full month, and the surcharge may not exceed the amount of tax payable, under section 27 of the Revenue Code. In a loss year, or a year with no tax to pay, there is no surcharge and only the criminal fine remains.
Fines are time-barred after 1 year, but the duty to file the statements never expires
The fine for not filing financial statements is time-barred 1 year from the date the filing fell due, and the Revenue Department criminal fine is likewise subject to a 1-year limitation period for comparative fining.
One point to be clear about: the limitation period cuts off collection of the fine only. It does not cut off the duty to file the financial statements. Outstanding statements still have to be prepared and filed. And while they remain outstanding, the company record is incomplete, which affects everything from loan applications to tender submissions to counterparty due diligence, and carries the risk that the Department strikes the company off the register as defunct.
In practice, a business several years behind on its statements is usually fined separately for each accounting period rather than in one lump. So establish exactly which years are outstanding before you start, and file them back in the right order. Do not go from memory.
The date sequence for an accounting period ending 31 December
Close the books and prepare the financial statements for the auditor. This should be finished during March.
The Certified Public Accountant audits and signs. This must be complete before the date of the general meeting, because section 1197 requires the audit first and the submission to the meeting after. A safe deadline is at least 10 days back from 30 April.
Send notice of the general meeting by registered post with acknowledgement of receipt to every shareholder on the register, not less than 7 days before the meeting, under section 1175 as amended. Ordinary companies no longer have to publish a newspaper notice. Publication is now required only for companies that have issued share certificates to bearer.
Send a copy of the balance sheet to shareholders not less than 3 days before the general meeting, under section 1197 paragraph two.
Hold the annual general meeting and approve the financial statements, by 30 April.
File the BOJ 5 within 14 days from the meeting date.
File the financial statements with the Department of Business Development within 1 month from the meeting date.
File PND 50 with the Revenue Department within 150 days from the end of the accounting period, which is the end of May.
The mistake made most often is waiting for the auditor to sign until late April, which leaves less than 7 days for the notice of meeting. The meeting then has to be postponed, and the late-meeting offence arises immediately.
A note on the rates The rates above are the comparative fine rates in the table annexed to the Department of Business Development regulation, which is the basis officials work from. Since 25 October 2023 this group of offences has been converted into administrative fines under the Act on Administrative Fines B.E. 2565 (2022), so officials also take the ability of the accused to pay into account. Treat the letter you receive from the Department as the authority for the amount actually payable.
Other fines under the Accounting Act B.E. 2543 (2000)
Section 28. Failing to keep accounts: a fine not exceeding 30,000 baht, plus a daily fine not exceeding 1,000 baht per day until the position is corrected.
Section 29. Failing to appoint a bookkeeper: a fine not exceeding 10,000 baht.
Section 30. Failing to file financial statements: a fine not exceeding 50,000 baht.
Section 32. Failing to have the financial statements audited by a Certified Public Accountant: a fine not exceeding 20,000 baht.
Source: Accounting Act B.E. 2543 (2000)
Revenue Department penalties
PP 30 penalties, and the reduced rates when you come forward yourself
Failing to file the return by the deadline carries a full penalty of 2 times the tax payable, under section 89(2) of the Revenue Code. But if you come forward and file before receiving a warning from an official, that is reduced to a percentage of the penalty, under Revenue Departmental Instruction Tor Por 81/2542 clause 5, which was repealed and replaced by Instruction Tor Por 369/2569, effective 3 July 2026.
This set of reduced rates applies to the penalties under sections 89(1), 89(2), 89(3) and 89(4) alike. It is not limited to section 89(2).
Filing the return and paying the tax at the same time, without having received a warning or a notice of examination, within 15 days after the deadline: 2% of the penalty remains payable. On tax of 10,000 baht the starting penalty is 20,000 baht, so 400 baht remains payable.
Over 15 days and up to 30 days: 5% of the penalty remains payable, which is 1,000 baht.
Over 30 days and up to 60 days: 10% of the penalty remains payable, which is 2,000 baht.
Over 60 days: 20% of the penalty remains payable, which is 4,000 baht.
Where a notice to file has already been received and you then file and pay: 40% remains payable if within the period stated in the notice, and 50% if after it.
Where the assessment officer has found the offence and recorded it: 40% remains payable within one year and 50% after one year. Coming forward before receiving the assessment notice does not restore the 2% rate.
The condition most often overlooked The return and the payment must be made together. Filing without paying does not qualify for the 2% rate. A written application must also be made to the assessment officer before the assessment notice is received. Waiving or reducing the penalty is at the officer's discretion, not an automatic entitlement. And this reduction applies to the penalty only. It does not reduce the surcharge under section 89/1.
Source: Revenue Departmental Instruction Tor Por 81/2542, as amended by Tor Por 369/2569, and Revenue Code sections 89 and 89/1
Where people get the calculation wrong most often The provision says 2% of the penalty, not 2% of the tax. You have to work out the starting penalty of 2 times the tax first, then apply the percentage above. The result is 4% of the tax, not 2%.
VAT penalties sit in several sections, and each is calculated on a different base
Section 89(2). Failing to file the return by the deadline: a penalty of 2 times the tax payable for that tax month.
Section 89(3). Filing an incorrect or erroneous return that causes the tax payable to be misstated: a penalty of 1 time the tax misstated.
Section 89(4). Filing an incorrect return that causes output tax or input tax to be misstated: a penalty of 1 time the output tax understated, or the input tax overstated.
Section 89/1. A surcharge of 1.5% per month or part of a month of the tax payable, capped at the amount of tax payable. A surcharge is not a penalty, and the rules for waiving or reducing it are a separate set.
A point to be clear about: section 89(4) penalises understated output tax and overstated input tax only. If output tax is overstated or input tax is understated, meaning more tax was paid than was due, there is no penalty on that part.
Penalties under several sections are not added together. They are compared, and the larger one is collected
Where one offence falls under more than one penalty section, the Revenue Department does not add them together. It compares them and collects only the larger amount, under Revenue Departmental Instruction Por 81/2542.
Where the return was not filed and the figures also turn out to be wrong, compare section 89(2) with section 89(4) and collect the larger.
Where the return was filed on time and the figures later turn out to be wrong, compare section 89(3) with section 89(4) and collect the larger.
In practice this means the tax can be misstated by very little and the penalty still be high, because the section 89(4) amount, calculated from understated output tax plus overstated input tax, is larger than the amount calculated from the tax misstatement. Estimating the penalty from the shortfall in tax alone therefore usually comes out too low.
The surcharge is calculated on the tax actually outstanding, not on the misstatement
The surcharge under section 89/1 is calculated on the correct net tax payable less what has actually been paid. It is not always calculated on the amount of the misstatement.
If the return as filed showed an overpayment, nothing was paid at all. So when the figures are recalculated and tax turns out to be payable, the surcharge is calculated on the full amount payable, not on the difference.
If the month still shows an overpayment after recalculation, there is no surcharge at all, even where a penalty arises under section 89(4), because there is no outstanding tax to calculate a surcharge on.
The surcharge is capped: it may not exceed the amount of tax payable. So however many years the amount has been outstanding, the surcharge stops at one times the tax.
Three worked examples taken directly from Instruction Por 81/2542
Example 1. The return was filed after the deadline and the figures later turn out to be wrong. The return showed output tax 1,000, input tax 750, tax payable 250 baht. The correct figures are output tax 1,600, input tax 400, tax payable 1,200 baht. Section 89(2) is calculated on the additional tax payable of 950 baht times 2, which is 1,900 baht. Section 89(4) is calculated on output tax understated of 600 plus input tax overstated of 350, which is 950 baht. On comparison, section 89(2) is collected at 1,900 baht, and the surcharge is calculated on 950 baht.
Example 2. The return showed an overpayment, but tax was in fact payable. The return showed output tax 1,000 and input tax 2,750, an overpayment of 1,750 baht. The correct figures are output tax 1,600, input tax 1,400, tax payable 200 baht. Section 89(2) is 200 times 2, which is 400 baht. But section 89(4) is output tax understated of 600 plus input tax overstated of 1,350, which is 1,950 baht. On comparison, section 89(4) is collected at 1,950 baht, even though the tax actually payable is only 200 baht. This is why claiming input tax you are not entitled to costs far more than people expect.
Example 3. The return was filed on time and the figures later turn out to be wrong. The return showed output tax 1,500, input tax 1,000, tax payable 500 baht. The correct figures are output tax 1,200, input tax 600, tax payable 600 baht. Section 89(3) is calculated on the tax misstatement of 100 baht. Section 89(4) is calculated on input tax overstated of 400 baht, while the 300 of output tax overstated carries no penalty. On comparison, section 89(4) is collected at 400 baht, four times the amount of the tax misstatement.
File on time and there is no penalty, even if the figures are wrong
A return filed by the deadline with figures entered incorrectly and the tax underpaid carries no penalty under section 89(3) or 89(4). Only the surcharge on the tax still outstanding applies.
A return filed on time, followed by an additional return filed within the deadline with the tax paid at the same time: no penalty and no surcharge.
A return filed on time, followed by an additional return within the deadline but without paying the tax at the same time: no penalty, only the surcharge on the amount unpaid.
Carrying forward more of the previous month's overpayment than actually existed, where the output tax and input tax for that month are both correct: no penalty, only the surcharge on the excess carried forward.
The principle running through all four cases: as long as the return is filed by the deadline and the output tax and input tax figures are correct, any remaining discrepancy is treated as underpayment of tax, which costs only the surcharge. Filing on time is always worth it, even when the figures are not yet settled.
Besides the penalty and the surcharge, filing PP 30 late also carries a criminal fine. The offence is under section 90(2) of the Revenue Code, with a ceiling of 2,000 baht per return. The comparative fine rate the area revenue office applies is 300 baht when up to 7 days late and 500 baht when more than 7 days late.
This criminal fine arises from not filing the return. It has nothing to do with whether there was tax to pay that month. A month in which input tax exceeds output tax, so that no tax is payable, still carries the criminal fine if the return is late.
Surcharge
Corporate income tax and withholding tax: a surcharge of 1.5% per month or part of a month of the tax payable, excluding any penalty, capped at the amount of tax payable, under section 27.
VAT: a surcharge of 1.5% per month or part of a month, likewise capped at the amount of tax payable, under section 89/1.
PND 51 filed late, or estimated net profit understated by more than 25% without reasonable cause: a surcharge of 20% of the tax underpaid, under section 67 ter, which can be reduced under Tor Por 81/2542 clause 16.
A criminal fine not exceeding 2,000 baht per return, under section 35 for income tax and section 90 for VAT.
A note: the criminal fine figures of 100 or 200 baht for filing up to or over 7 days late, and 300 or 500 baht for VAT, are the rates seen in practice from comparative fining by area revenue offices. They do not appear in the legislation. The law sets only a ceiling of 2,000 baht per return, and allows a reduction to be requested.
Withholding tax under-remitted or not remitted
A payer with a duty to withhold tax must file the return and remit the tax within 7 days from the date the income was paid, under section 52. The law offers an alternative of remitting within 7 days from the end of the month in which the income was paid, under section 3 octo paragraph two, and that is the method generally used.
This alternative is available for PND 1 covering salaries and wages under section 50(1), PND 2 for interest and dividends under sections 40(4)(a) and (h) only, sales of immovable property under section 50(4), PND 53 under section 69 bis, and PND 3 and PND 53 under section 3 tredecim.
Failing to file the return and remit by the deadline carries a fine not exceeding 2,000 baht, under section 35 together with section 17 of the Revenue Code. The comparative fine rate the area revenue office actually applies to withholding tax returns is 100 baht per return when up to 7 days late and 200 baht per return when more than 7 days late.
Watch the words per return. In a month where PND 1, PND 3 and PND 53 all have to be filed and all three are late, the criminal fine is calculated separately for each. It is not a single amount.
These rates are much lower than for annual returns, where PND 50 is 1,000 and 2,000 baht, because the law treats monthly returns as higher in frequency. But the 1.5% per month surcharge is not reduced to match, so the expensive part is usually the surcharge, not the criminal fine.
A surcharge of 1.5% per month or part of a month of the tax to be remitted, excluding any penalty, under section 27, running from the day the deadline passed until the day the tax is actually remitted. It is capped: Instruction Por 91/2542 clause 9 states that the surcharge calculated may not exceed the amount of tax payable or to be remitted. At 1.5% per month, the surcharge reaches that cap after 67 months.
Withholding tax has no penalty of the kind VAT has. There is only the tax itself, the surcharge and the criminal fine.
Withheld in full but not remitted: the payer alone is liable for the whole amount
The dividing line for liability is whether the tax was correctly withheld in full, not whether it was remitted.
If the tax was correctly withheld in full but not remitted, or under-remitted, the payee is immediately released from liability up to the amount withheld, and the payer alone is liable to pay that tax, under section 54 paragraph two and Instruction Por 91/2542 clause 7. The Department will pursue the payer only, and cannot pursue the payee.
If no tax was withheld at all, or too little was withheld, the payer is jointly liable with the payee for the tax not withheld or short-withheld, under section 54 paragraph one and Instruction Por 91/2542 clauses 2, 3 and 6. In that case recovery from the payee is still possible.
If the tax was withheld in full and remitted in full on time, both parties are released up to the amount correctly remitted, under Instruction Por 91/2542 clause 5. And if no tax was withheld but the payer bore it on the payee's behalf and remitted it in full on time, the parties are likewise released, under clause 4.
The practical point worth remembering: withholding the tax and then holding on to the money because cash is tight moves the whole burden onto yourself with no way back. That is different from forgetting to withhold in the first place, where the burden can still be shared with the payee.
Issuing the certificate and then not remitting: both civil and criminal exposure
Where the payer has withheld the tax and issued the withholding tax certificate to the payee, but does not remit the money to the Revenue Department or remits too little, the payer alone is liable, under section 54 paragraph two.
The payee is still entitled to claim the amount stated on the certificate as a tax credit as normal, whether or not the payer remitted it. The assessment officer's only task is to check whether tax was in fact withheld from the payee.
Where the assessment officer finds that the payer withheld the tax but did not remit it, both civil and criminal proceedings are taken against the payer to secure full remittance, under Instruction Por 91/2542 clause 11 paragraph three.
The order of collection is that the assessment officer pursues the payer first. If collection fails or is incomplete, the officer then has power to assess or summon the payee under section 18, section 19 or section 23, under clause 12.
If the payee has already filed and paid the tax, there is nothing further to remit
Where the payer did not withhold and did not remit, or withheld and remitted too little, but the payee has already reported that income on a return and paid the tax, the payee as joint debtor is treated as having discharged the tax debt. The payer is therefore released from the tax itself, under section 54 paragraph two and Instruction Por 91/2542 clause 10.
The payer still has to pay the surcharge of 1.5% per month, running from the day the remittance deadline passed until the day the payee filed and paid the correct amount in full, not until today. The sooner the payee filed, the smaller the surcharge.
What you actually have to do is obtain and keep a copy of the payee's return and tax payment receipt. Without that evidence you cannot prove the position to an official, and you will end up having to remit the tax in full anyway.
This route is available only where tax was not withheld or was under-withheld. If the tax was withheld in full and not remitted, that money belongs to the payee and is in the payer's hands. It must always be remitted.
Sales of immovable property, and payments made abroad
Withholding tax on sales of immovable property under sections 50(5) and 50(6) must be remitted to the officer registering the right or juristic act at the time of registration, and the officer is prohibited from signing, acknowledging or recording it until the tax has been received in full, under section 52 paragraph two. This one is hard to get wrong, because registration does not go through until payment is made.
If the withholding on the immovable property does not involve registration of a right or juristic act, the ordinary remittance method applies. The same rules apply to sales of immovable property by juristic persons under section 69 ter.
Assessable income paid to a recipient abroad under section 70 must be reported and remitted within 7 days from the end of the month of payment, on PND 54, and the same rules on liability and surcharge described above apply throughout, under Instruction Por 91/2542 clause 14.
PND 51 carries two separate charges arising from different causes
The first is filing the return late, from missing the deadline of 2 months from the last day of the first 6 months of the accounting period. For a period ending 31 December, the deadline is the end of August.
The second is understating estimated net profit by more than 25% of actual net profit. This can happen even where everything was filed on time, because whether the estimate fell short is only known once the full-year accounts are closed.
Both sit in section 67 ter and both carry a 20% surcharge, but they are calculated on different bases. The first is calculated on the half-year tax payable, the second on the tax underpaid. They can arise at the same time, and if they do, both are charged.
The surcharge under section 67 ter is treated as tax, and can be reduced under the rules the Director-General prescribes, which is Instruction Tor Por 81/2542.
Filing PND 51 late
Criminal fine: 1,000 baht up to 7 days after the deadline, and 2,000 baht more than 7 days after, which is the statutory ceiling under section 35 of the Revenue Code. This fine arises from not filing the return, whatever the tax position.
Surcharge: arises only where tax is payable. The full rate under section 67 ter is 20% of the tax payable, but a reduction can be requested under Instruction Tor Por 81/2542 clause 16 where the return is filed and the tax paid at the same time, before any warning or notice of examination is received.
Paid within 2 days after the deadline: 0.10% of the tax remains payable. On half-year tax of 50,000 baht, the surcharge is 50 baht.
Over 2 days but not more than 7 days: 0.50% of the tax remains payable, which is 250 baht.
Over 7 days: 1.5% per month or part of a month applies, up to the statutory cap on the surcharge, which is 20%. At 100 days late, counted as 4 months, that is 6%, which is 3,000 baht.
The difference between filing on day 2 and filing on day 8 is 50 baht against several thousand. Once you know the deadline has passed, the date you file has a real effect on the amount. It is not a small matter.
Estimated net profit understated by more than 25%
If the estimated net profit reported on PND 51 falls short of actual net profit at the year end by more than 25% without reasonable cause, a further surcharge of 20% of the tax underpaid applies, under section 67 ter.
If there is reasonable cause, this surcharge does not arise at all, however far short the estimate fell.
The point that catches people out: this surcharge has no sliding scale by number of days, unlike late filing. If an official finds it, it is the full 20%. On tax underpaid of 30,000 baht, the surcharge is 6,000 baht, whether you realised early or late.
Reasonable cause, under Instruction Por 50/2537
The simplest protection is this: if the half-year tax paid is not less than half of the corporate income tax reported for the previous accounting period, reasonable cause is treated as established, and the 20% surcharge does not apply even if the estimate fell short by more than 25%.
What this means in practice is that the estimate does not have to be accurate. As long as the half-year tax paid is not less than half of last year's full-year tax, you are safe from this surcharge. A business whose profit grows every year should therefore always work from last year's figure as the floor, rather than estimating from the first half alone.
There is a second case: half-year tax paid at less than half of last year's because of a tax exemption or a reduced tax rate, where the estimated net profit reported was not lower than the net profit of the previous accounting period. That too is treated as reasonable cause, because the shortfall arises from a tax benefit rather than from a low estimate.
Source: Revenue Departmental Instruction Por 50/2537, as amended by Instruction Por 152/2558
If you find the estimate fell short, fixing it before filing PND 50 costs far less
If closing the accounts shows that the estimate reported fell short by more than 25%, file an additional PND 51 and pay the shortfall, coming forward before an official finds it. The surcharge can then be reduced from 20% to 1.5% per month or part of a month, under Instruction Tor Por 81/2542 clause 16(2).
On tax underpaid of 30,000 baht, fixing it within the same month costs a surcharge of 450 baht. Leaving it until an official finds it costs 6,000 baht. Thirteen times the difference.
The condition to watch: the return and the payment must be made together, and no warning or written notice of examination or inquiry may yet have been received. If you file after receiving that notice, the reduced rate is not available.
In practice the moment to check is when the accounts are closed and actual net profit is known, before filing PND 50 in May. If the estimate fell short by more than 25% and no reasonable cause applies, file the additional return there and then.
Two things that are often forgotten. None of these criminal fines and surcharges is deductible in calculating corporate income tax. They are added back as non-deductible expenses, so the real cost is higher than the amount paid. And while the criminal fine is time-barred 1 year from the filing deadline, the tax liability and the surcharge do not expire with it.
A company registered in Thailand with foreign shareholders or directors has exactly the same filing and remittance obligations as a Thai company, and most of that burden is monthly rather than annual. A summary of the monthly deadlines and the points most often missed is at accounting for companies with foreign shareholders
Surcharge on late remittance of social security contributions
An employer who remits contributions late or under-remits must pay a surcharge of 2% per month of the contributions not yet remitted or still outstanding, running from the day after the remittance was due, under section 49 paragraph one of the Social Security Act B.E. 2533 (1990). The deadline is the 15th of the month following the month the contributions were deducted, under section 47, so the surcharge starts running on the 16th.
The Act does not say how part of a month is counted. The practice generally followed is to count part of a month as a full month. Treat the figure notified by the Social Security Office as the authority for the exact amount.
The social security surcharge is capped The end of section 49 paragraph one states that the surcharge calculated must not exceed the amount of contributions the employer has to pay. That cap was added by the Social Security Act (No. 4) B.E. 2558 (2015). At 2% per month, the surcharge reaches the cap after 50 months outstanding and then stops at one times the contributions.
On contributions of 15,000 baht outstanding for 5 years, the formula gives a surcharge of 18,300 baht, but only 15,000 baht can actually be collected. The total to remit is 30,000 baht.
Social security has no reduced rates of the kind the Revenue Department offers. Section 84/1 states plainly that an extension of time is not a ground for reducing or waiving the surcharge. What you can do is apply for an extension where there is a necessary cause beyond your control, by filing an application within 15 days from the end of that cause, apart from cases where the Minister, with Cabinet approval, extends the deadline generally under section 84/2, as was done during Covid and during flooding.
Paying contributions late on its own carries no criminal penalty
The imprisonment of up to 6 months, or fine of up to 20,000 baht, that people often mention is not the penalty for remitting contributions late. No provision in the penalty part of the Social Security Act punishes late remittance of contributions directly.
Filing the contribution return on time but paying late results in the 2% per month surcharge only. There is no criminal penalty.
Failing to file the contribution return by the deadline under section 47, or filing a false return, carries imprisonment of up to 6 months, or a fine of up to 20,000 baht, or both, under section 97.
Failing to file employer or insured person registration under section 34, or failing to notify a change under section 44, intentionally, carries the same penalty under section 96. Where the offence is continuing, there is a further fine of up to 5,000 baht per day for as long as it remains uncorrected.
Where the employer is a juristic person, the directors or those responsible for its operations are also liable, under section 101.
The practical conclusion: if there is not enough cash this month to pay the contributions, still file the return by the 15th and pay afterwards. That costs the surcharge only and does not create a criminal offence. Not filing at all because the money is not there gets you both the surcharge and a criminal offence.
Leave contributions outstanding and the Office can assess and seize assets
Where an employer does not remit contributions, the Social Security Office has power to assess the contributions and notify the employer to remit, under section 47 bis.
If they are still not remitted as notified, the Secretary-General has power to issue a written order to seize, attach and sell the employer's assets by public auction to meet the contributions and the surcharge, under section 50, without going to court.
The employee's entitlement is not lost. Section 49 paragraph two states that where an employer has not deducted wages to remit as contributions, or has deducted less than the full amount, the employer is liable to pay the insured person's share in full, and the insured person's rights stand as if the contributions had been remitted. Employees can therefore still use their medical and other entitlements. The burden falls entirely on the employer.
Frequently asked questions
The financial statements are 1 month late. How much is it?
For a limited company or registered partnership up to 2 months late, the reference rate is 1,000 baht on the juristic person and a further 1,000 baht on the managing director or managing partner, roughly 2,000 baht in total. Note that Department of Business Development fines fall under the administrative fine system, so the actual amount may differ from the reference rate.
We have not filed financial statements for several years. What should we do?
Because section 40 of the Accounting Act B.E. 2543 (2000) provides that where a juristic person commits an offence through the direction or omission of the managing director or the person responsible, that person is also liable. The fine therefore arises against both the juristic person and the individual.
Why are there two separate fines on financial statements?
File all the outstanding years as soon as possible. The fines do not decrease over time, and outstanding financial statements make it impossible to apply for credit, bid for work or sell the business. The STA team handles back-filing with both the Department of Business Development and the Revenue Department.
We filed PP 30 late but there was no tax to pay that month. Is anything due?
The penalty and the surcharge are both calculated on the amount of tax payable, so if there is no tax to pay that month, both are zero. But the criminal fine for not filing the return by the deadline still applies, with a statutory ceiling of 2,000 baht.
Does the surcharge just keep running with no end?
The surcharge is capped in all three regimes, but on different bases. The Revenue Department surcharge may not exceed the amount of tax payable, both for income tax under section 27 and for VAT under section 89/1. The PND 51 surcharge is capped at 20% of the tax under section 67 ter. The social security surcharge may not exceed the amount of contributions payable, under section 49 paragraph one.
What genuinely differs is whether a reduction can be requested. The Revenue Department has reduced rates under Instruction Tor Por 81/2542. Social security has none at all: section 84/1 states plainly that an extension of time is not a ground for reducing or waiving the surcharge.
Can the amount calculated on this page be used as the amount to pay?
Use it as an estimate for planning, but not as the amount actually payable. Department of Business Development fines fall under the administrative fine system, where officials also take ability to pay into account, and the Revenue Department criminal fines come from comparative fining by the area revenue office.
The longer it stays outstanding, the more it costs every month
The STA team handles back-filing, both financial statements outstanding with the Department of Business Development and tax returns outstanding with the Revenue Department. The work is supervised by Certified Public Accountants and registered bookkeepers, under a founder with 32 years of professional experience, at an accounting firm registered as a Quality Accounting Firm with the Department of Business Development.
The initial consultation is free. If you are not sure what is outstanding, we can establish that for you first.
Request a quote online and see the price range before you decide. Answer 6 short questions, in under 2 minutes, and the system estimates a price range straight away from your actual document volume and type of business. Our team then comes back with a quotation within 1 working day. Go to www.account.co.th/quote or use the Get a Quote menu at the top of the site.
Sources
Financial statement penalty rate table, Department of Business Development
Accounting Act B.E. 2543 (2000)
Revenue Code, VAT penalties and surcharge, sections 89 and 89/1
Revenue Code, surcharge, section 27
Revenue Code, penalties, section 35
Revenue Departmental Instruction Tor Por 81/2542 on reducing penalties and surcharges
Social Security Office, contributions and payment
Comparative fine rate table under the Civil and Commercial Code, Department of Business Development
Revenue Departmental Instruction Por 81/2542 on calculating VAT penalties and surcharge
Revenue Departmental Instruction Tor Por 369/2569 amending Tor Por 81/2542
Revenue Departmental Instruction Por 91/2542 on liability for withholding income tax at source
Revenue Departmental Instruction Por 50/2537 on assessing reasonable cause under section 67 ter
Revenue Code sections 65 to 76, which include sections 67 bis and 67 ter
Revenue Code sections 38 to 64, which include sections 52, 53 and 54
Revenue Code sections 1 to 4, which include section 3 tredecim and section 3 octo
Social Security Act B.E. 2533 (1990), full text, Social Security Office
Last updated August 2026. This material is general information, not a legal or tax ruling. The details differ from business to business. Check with the relevant agency or a professional before acting on it.
More on the audit side (website of Auditor Team Co., Ltd.) Financial statements outstanding for several years: how a back-audit works · Which partnerships need a Certified Public Accountant · What audit fees depend on