Impact of New NACC Reporting Requirement on Private Sector

A recent notification by the National Anti-Corruption Commission (NACC) is set to have a significant impact on companies that do business with the Thai government. On August 11, 2011, the NACC issued the Notification re: Rules and Procedures Concerning the Preparation and Disclosure of Revenue and Expenses Accounts of Projects which Individuals or Juristic Entities are Contractual Parties with Government Agencies (Notification). Pursuant to the Notification, effective January 1, 2012, private sector entities entering into procurement contracts with government agencies will be required to prepare and electronically submit revenue and expense accounts to the Revenue Department every year, together with their Corporate Income Tax Return (for juristic entities) or Personal Income Tax Return (for individuals).