Can I Claim Private and Personal Costs as a Business Expense in Thailand?
No. Personal costs of the owner or directors are not company expenses. Keep them out of the company's books, or record them against the director who benefited.
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What Revenue Department (กรมสรรพากร) says
Only costs of the business reduce net profit for corporate income tax. Personal spending paid by the company is not deductible and may be treated as pay or a distribution to the owner. A licensed auditor reviews the company's statements every year, and private costs in the books are a common audit point. When a director takes money or benefits from the company, it should be recorded as salary, as a dividend approved by the shareholders, or as an amount the director owes the company. Each one has a different tax treatment, so agree which applies with your accountant.
When you can claim
When you cannot claim
- Family holidays and personal shopping
- School fees for the owner's children
- Personal phone and gym costs with no business use
- Personal insurance policies for a director
- Private car costs with no business use
- Household bills at a director's home
- Gifts to family and friends
- Club memberships used for leisure
Good to know
Pro tip: Keep a separate personal card for private spending. It saves time each month and keeps the company's books clean for the audit. If a cost is partly business and partly private, such as a phone plan, agree a fair business share with your accountant and apply it the same way every month.
Important: If the company paid a personal cost, tell Finn. It records it against the owner, not as an expense. A personal cost paid by the company and then repaid by the director should be shown both ways in the books, so the auditor can see it was settled.
Related expenses
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AccountsOS automatically categorises expenses with Revenue Department (กรมสรรพากร)-aware rules and tells you exactly what is claimable.
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