A Reminder of the NACC’s Requirements
According to the Notification of the National Anti-Corruption Commission (‘NACC’) dated 11 August 2011, private sector entities (including individuals, Thai companies, and foreign companies with a local presence) that enter into procurement or subsidy contracts with government agencies (including state enterprises, public organizations, organizations established under the Constitution of Thailand, or other government units as prescribed by the NACC) are required to file revenue and expense accounts to the Revenue Department together with the filing of annual income tax returns.
Keywords: Mazars, Thailand, Tax, NACC, Revenue Department
10 April 2013
Such accounts must be prepared and filed separately for each contract. In addition, the contractual entities with government agencies will also be required to retain supporting documents for at least five years.
The Notification became effective on 1 April 2012. For the first year (1 April 2012 - 31 March 2013), only government contracts with a value of THB 2,000,000 or more will be liable to the reporting requirement. From 1 April 2013 onwards, the reporting requirement will apply to all government procurement contracts with a value of THB 500,000 or more.
Any government contracts which are executed before 1 April 2012 will not be subject to this new reporting requirement. However, if there is any significant amendment made to such contracts after 2012, the reporting requirement will also be applied to such contracts.
Failure to comply with the reporting requirement will subject the contractor to serious penalties. The punishment for noncompliance is disqualification from entering into new procurement or subsidy contracts with government agencies. In addition, the violator could be also investigated by the NACC and the Revenue Department.
Read the Notification of the National Anti-Corruption Commission for more information.
Want to know more?
