I have a limited company registered at 2 million baht.

Last year I managed to show 1.8 million baht capital, but nobody ever asked for the specific tax of 3% on the shortfall from 2 million.

This year I have less in the bank so it will be even more difficult to find the 2 million baht and in the current climate I don't want to bring any more cash over from abroad. I would really like to avoid the specific tax if I can.

My question is... Could I show all the same capital assets as I did last year at the same value, or must I depreciate everything at 20% per annum? How closely is the list of assets likely to be checked?

Thanks

In Thailand, capital equipment is depreciated at 20% per year, real property (buildings) at 5% per year.

Unofficially, you are allowed to operate at a loss for your first two years - after that, you must show (and pay 30% tax) on a profit.

You do not need to maintain any specific bank balance - but your annual balance sheet must reflect a healthy enough asset summary to make your reported salaries look doable.

What can happen is that you are forced to increase your registered capitalization - if your cumulative loss (including depreciation) begins to approach your total amount of registered capitalization. But - this is a registered capital increase - not a real cash pay-in.

Good luck!

Indo-Siam