5 Accounting & Tax Risks Every Phuket Business Owner Should Know (And How to Avoid Them)

📍 Operating a business in Phuket?

Whether you’re running a café in Old Town, managing a resort near Patong, or launching a new real estate venture—staying compliant with Thai tax and accounting laws is crucial.

Here are 5 common accounting and tax risks we’ve seen in Phuket-based businesses, and how you can protect your company from unnecessary penalties or investigations.

🔻 1. Mixing Personal and Business Finances

Risk: Failing to separate business and personal expenses can lead to inaccurate books and potential tax issues.
Solution: Open a dedicated business bank account and work with a professional accountant monthly.

🔻 2. Missing or Incomplete Supporting Documents

Risk: You may lose the ability to claim tax deductions if proper invoices or receipts are not maintained.
Solution: Always request official tax invoices and store them properly—physically or digitally.

🔻 3. Late or Incorrect Tax Filings

Risk: Penalties and interest from the Revenue Department, and potential red flags for audit.
Solution: Hire a professional accounting firm to manage filings on time and check for accuracy.

🔻 4. Misunderstanding “Disallowable Expenses”

Risk: Claiming personal or non-business-related expenses can lead to tax rejections or audits.
Examples:

Entertainment with no attendee list
Travel expenses unrelated to business
Gifts over allowable limits
Solution: Consult a tax advisor before making any large deductions.

🔻 5. Not Knowing If Your Company Requires a CPA Audit

Risk: Many SMEs in Phuket don’t realize that they are legally required to submit audited financial statements.
Solution: Check the minimum criteria for audit under Thai law—or let our team evaluate your compliance.