Thailand’s revised tax penalty rules have applied since 3 July

Early voluntary correction can materially change a VAT penalty

Revenue Department Order No. TP 369/2569 took effect on 3 July 2026 and amended the long-standing rules governing relief from several tax penalties and surcharges.

One of the clearest changes concerns certain VAT breaches. Where a taxpayer files the relevant return and pays the VAT before receiving a written warning or formal examination notice, the amended rules set reduced portions of the statutory penalty at 2% if payment is made within 15 days after the due date, 5% after 15 but within 30 days, 10% after 30 but within 60 days, and 20% after 60 days. Different, less favourable treatment applies once the Revenue Department has issued a formal notice or recorded the violation.

The order also adds specific treatment for businesses that operated without VAT registration. A taxpayer that applies for VAT registration within 30 days after crossing the statutory small-business threshold, then files the required VAT return and pays the tax, may qualify for a waiver of the penalty. Late registration, or closing a business without having registered, follows a different reduction framework in which timing and prior detection by the authorities matter.

For practical context, see Thailand economy and finance. This development also connects with Thailand SEC updates disclosure rules for private funds.

The procedure changes once an assessment notice has been issued

The amended rules also clarify how relief must be requested. For the covered penalties, a written application explaining the grounds for a waiver or reduction is generally filed before the assessment officer issues an assessment notice. Once that notice has been received, the matter moves into the formal tax appeal process.

There is an important procedural shortcut in some VAT and specific business tax cases. If the taxpayer files the return and pays the tax before receiving a written warning or examination notice, the return itself can be treated as the request for penalty relief. Related wording was also updated for the surcharge under Section 67 ter concerning the corporate mid-year tax calculation.

None of these steps guarantees a reduction. The rules state that an assessment officer may consider relief where the taxpayer is regarded as having had no intention to evade tax and has cooperated properly with the examination.

A later August order changed decision-making authority

On 3 August, the Revenue Department published Order No. TP 370/2569, replacing earlier delegation orders that governed which officials could decide certain penalty-relief cases. That administrative update did not repeal the July criteria under Order No. TP 369/2569.

For a business owner, investor or long-term resident dealing with a Thai tax issue, the practical task is therefore to identify the exact provision before relying on any percentage. The relevant tax, the date of the breach and payment, whether a written notice has already been issued, and the current stage of the examination can all change the available route and the amount still payable.