Expense Timing: What Counts for Your 2025 Tax Year?

As you finalize your 2025 filing this March, a common point of confusion is "Which expenses count?" In Thailand, business accounting is based on the Accrual Principle, not just when the cash left your bank account.

 

The Invoice Date Rule

If an service was provided to your company in December 2025, but you didn't pay the bill until January 2026, it still counts as a 2025 expense. Ensure your accountant has recorded these "Accrued Expenses."

 

Prepaid Expenses

Conversely, if you paid for a 12-month software subscription in December 2025, you can only claim one month (December) for the 2025 tax year. The remaining 11 months must be carried forward as "Prepaid Expenses" for your 2026 filing.

 

Why Accuracy Matters

Recording expenses in the wrong year can trigger an audit. The Revenue Department looks for mid-year vs. year-end spikes in spending. Being precise with your timing shows the authorities that your internal controls are strong, which reduces your overall audit risk.

 

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Related Service: Accounting & Tax Compliance — Professional bookkeeping to ensure every expense is timed perfectly.