Accounting and Tax for Restaurant Businesses

Running a restaurant in Thailand means many small transactions every day, volatile ingredient costs, a mix of permanent and casual staff and a lot of cash. Good accounting is how you control costs, plan your finances and stay on the right side of the Revenue Department. This guide covers the essentials for restaurant owners, including foreign owners.

Basic bookkeeping for restaurants

Thai law requires businesses to keep proper accounts, supported by documents, and to keep the books and documents for at least five years (Accounting Act B.E. 2543 (2000), Sections 8, 9, 12 and 14).

Recording income

• Food and beverage sales
• Catering income
• Other income, such as service charges and delivery fees

Recording expenses

• Ingredient costs
• Staff wages
• Rent and utilities
• Repairs and maintenance
• Other operating expenses

For corporate income tax, net profit is revenue less expenses on an accrual basis (Revenue Code, Section 65). Only business expenses are deductible, and some are not, such as personal expenses, expenses with no identifiable payee, and fines and surcharges (Revenue Code, Sections 65 bis and 65 ter).

Taxes relevant to restaurants

Value Added Tax (VAT)

• You must register for VAT once annual turnover exceeds THB 1.8 million, within 30 days of exceeding it (Revenue Code, Sections 81/1 and 85/1).
• The VAT rate is 10% under the Revenue Code but is reduced to 7% by Royal Decree (Revenue Code, Section 80 and Royal Decree (No. 807)); the 7% rate is extended until 30 September 2027.
• The VAT base includes service charges (Revenue Code, Section 79), so VAT applies to the service charge on the bill as well as the food and drink.
• File the PP.30 return monthly, by the 15th of the following month (Revenue Code, Section 83). Filing online currently gives 8 extra days, extended until 31 January 2027 (Ministry of Finance notification).
• A VAT-registered restaurant must issue tax invoices that contain the required details (Revenue Code, Sections 86 and 86/4).
• Input VAT on some items, such as entertainment and invalid tax invoices, cannot be claimed (Revenue Code, Section 82/5).

“a VAT registrant shall immediately issue tax invoice and its copy for every sale of goods or provision of service at the time the tax liability taking place”

Revenue Code, Section 86 — Revenue Department unofficial English translation

“Value of tax base shall include money, property, consideration, service fees or benefits calculable into money term.”

Revenue Code, Section 79 — Revenue Department unofficial English translation

Corporate income tax

• The standard rate is 20% of net profit (Revenue Code, Section 67).
• Small companies (paid-up capital of THB 5 million or less and annual revenue of THB 30 million or less) pay 0% on the first THB 300,000 of profit, 15% on THB 300,001–3,000,000 and 20% above that (Royal Decree No. 530 (B.E. 2554), as amended).
• File PND.51 (half-year estimate) within two months after the first six months (Revenue Code, Section 67 bis). If your estimate is more than 25% below the actual profit, a 20% surcharge applies to the shortfall (Revenue Code, Section 67 ter).
• File PND.50 (annual return) within 150 days after the end of the accounting period (Revenue Code, Sections 68 and 69); online filing currently gets 8 extra days, extended until 31 January 2027 (Ministry of Finance notification).

Personal income tax (sole proprietors)

• Restaurant business income is assessable income under Section 40(8) (Revenue Code, Section 40).
• You may deduct actual expenses with evidence, or a standard deemed expense rate under Royal Decree No. 11 (B.E. 2502), as amended; for many businesses this is 60%, but the rate depends on the type of business.
• File PND.94 (half-year) by 30 September and PND.90 (annual) by 31 March (Revenue Code, Sections 56 and 56 bis).

Progressive rates apply to net income (Revenue Code, Section 48):

Withholding tax

When a restaurant pays certain expenses it must withhold tax and pay it to the Revenue Department (Revenue Code, Section 3 terdecim and Departmental Order Tor.Por. 4/2528):

• 5% on rent
• 3% on service fees and hire of work
• Withholding on employee salaries, filed on PND.1 (Revenue Code, Sections 50 and 52)
• PND.3 for payments to individuals and PND.53 for payments to companies, filed by the 7th of the following month (online filing currently gets 8 extra days, extended until 31 January 2027)

Social security

Employer and employee each contribute 5% of wages, calculated on a wage base of THB 1,650–17,500 (from 2026), so the maximum is THB 875 per month each. Contributions are filed by the 15th of the following month (Social Security Act B.E. 2533). For staff paperwork, see our payroll and work permit service.

Key accounting documents

Sales documents

• Receipts
• Tax invoices
• Daily sales reports
• Copies of cash bills

Purchase and expense documents

• Purchase tax invoices
• Expense receipts
• Ingredient purchase orders
• Goods received notes

Using technology for restaurant accounting

Choosing a POS system

Look for these features:

• Real-time sales recording
• Inventory management
• Sales and cost reports
• Tax invoice issuing

Online accounting software

Benefits include:

• Automatic entries from the POS
• Fast financial reporting
• Real-time cash flow tracking
• Connection to bank feeds and e-payment

Banks and e-payment providers report accounts to the Revenue Department when, in a year, an account receives 3,000 or more deposits or transfers, or 400 or more deposits totalling THB 2 million or more (Revenue Code Amendment Act (No. 48) B.E. 2562 (2019)). Restaurants with heavy card and QR payments should keep clean records.

Key internal controls

Inventory control

• Record ingredient usage
• Count stock daily
• Work out ingredient cost per menu item
• Check ingredient freshness

Cash control

• Count cash daily
• Reconcile cash with sales
• Separate cash handling from bookkeeping
• Bank cash daily

Cost and profit calculation

• Cost per dish
• Gross margin analysis
• Pricing
• Break-even analysis

Why restaurants benefit from an accounting firm

Restaurants are complex

• Many transactions every day and a lot of cash
• Volatile ingredient costs
• Permanent and temporary staff
• Many kinds of expense

Legal compliance

• Multiple tax filing deadlines each month and year
• Complete accounting records and supporting documents
• Records kept for the legally required period
• If you operate through a limited company, the financial statements must be audited by a Thai CPA (Civil and Commercial Code, Section 1197) – see our audit service

Lower risk

• Fewer tax calculation errors
• Fewer problems in a Revenue Department audit
• Proper internal controls and fraud prevention

Better business decisions

• Accurate financial data and profitability analysis
• The true cost of each menu item
• Records ready for bank loan applications
• Effective financial and tax planning

Owners can then focus on running the restaurant while our bookkeeping team handles the paperwork and keeps up with rule changes. Setting up a new restaurant company? See company registration.

FAQ

When must a restaurant register for VAT?

Once annual turnover exceeds THB 1.8 million. You must register within 30 days of exceeding it (Revenue Code, Sections 81/1 and 85/1).

Does VAT apply to the service charge?

Yes. The VAT base includes service fees received from the customer (Revenue Code, Section 79).

What corporate income tax rate does a small restaurant company pay?

The standard rate is 20%. A company with paid-up capital of THB 5 million or less and revenue of THB 30 million or less pays 0% on the first THB 300,000, 15% up to THB 3 million and 20% above (Royal Decree No. 530 (B.E. 2554), as amended).

How long must restaurant records be kept?

At least five years (Accounting Act B.E. 2543 (2000), Section 14).

Legal references

• Revenue Code, Sections 40, 48, 50, 52, 56, 56 bis: personal income tax, rates, salary withholding and returns
• Revenue Code, Sections 65, 65 bis, 65 ter, 67, 67 bis, 67 ter, 68, 69: corporate income tax, deductible and non-deductible expenses, half-year and annual returns
• Revenue Code, Sections 79, 80, 81/1, 82/5, 83, 85/1, 86, 86/4: VAT base, rate, registration, input tax, returns and tax invoices
• Royal Decree No. 530 (B.E. 2554), as amended: reduced corporate income tax rates for small companies
• Royal Decree No. 11 (B.E. 2502), as amended: deemed expense rates for individuals
• Royal Decree (No. 807): VAT rate of 7% until 30 September 2027
• Revenue Code, Section 3 terdecim and Departmental Order Tor.Por. 4/2528: withholding tax on service fees, rent and similar payments
• Revenue Code Amendment Act (No. 48) B.E. 2562 (2019): e-payment account reporting
• Accounting Act B.E. 2543 (2000), Sections 8, 9, 12 and 14: keeping accounts, supporting documents and retention
• Civil and Commercial Code, Section 1197: audit of company financial statements
• Social Security Act B.E. 2533: contributions
• Revenue Department of Thailand (English): www.rd.go.th

Official sources (Thai government websites, mostly in Thai)

• Royal Decree No. 807 (B.E. 2569) – VAT 7% extended to 30 September 2027 (Royal Gazette, 23 Aug 2026)
• Ministry of Finance Notification on extending e-filing deadlines by 8 days (No. 7, as amended) – filings due up to 31 January 2027
• Departmental Order Tor.Por. 4/2528 – withholding tax rates (e.g. hire of work 3%, advertising 2%, rent 5%, transport 1%)
• Royal Decree No. 530 (B.E. 2554) – SME corporate income tax rates
• Revenue Department CIT guide for SMEs (paid-up capital ≤ 5M, income ≤ 30M THB)
• Royal Decree No. 11 (B.E. 2502) – deemed expense rates for individuals
• Revenue Department Q&A – e-Payment law (Revenue Code Amendment Act No. 48)
• Accounting Act B.E. 2543 (Department of Business Development)
• All documents above are published on the Revenue Department of Thailand website (search by document name or number).

Need help? Talk to an English-speaking accountant — call +66 96 969 8592 or message us on LINE.

This article is general information as of September 2026, not tax advice. Thai-language law prevails.