APR Loan in Plain English

If it’s your first time applying for a loan then you’ll surely encounter terminologies that you’ll need to understand. One such term that you will always come across is the annual percentage rate or APR loan.

APR will give you an idea of how much your monthly payment would be by giving you an approximation of your annual interest rate. This is especially true for loan providers, credit card companies and banks. However, all things being equal, don’t be blinded by the APR Loan rate alone as you might be charged with processing fees, insurances and other applicable fees as deemed appropriate in your transaction.

APR Loan in Plain English

Also, make sure that you understand how much your nominal APR is and if compounding, APR loan fees will be applied. For the purpose of clarity, nominal APR is the simple interest rate per year. If you are charged A1 per month per A100 loaned, assume that your annual nominal APR is A112. For compounding interest rate, say the same APR rate is applied, you’ll pay A101 on the first month, and A102.01 on the second month, and so on.

Looking at the information above, it’s important that you ask your loan provider and have everything explained to you before you become firm in your decision for going ahead with and processing your loan. As always, try to compare by using an APR loan calculator online so that you’ll see if there are other providers around that may give you a better loan rate.

These calculations are part of the bigger consumer protection process which needs to be carried out whenever someone applies for a loan. The Truth in Lending Act requires all lenders to disclose the “real cost” of borrowing a certain amount to protect both parties from legal liabilities should a dispute arise.

APR loan calculation scheme is applied in order to make borrowing and lending an easy process and to help the borrower make an informed decision as to which lending company to go to in order to take advantage of the lowest possible interest rate for their loan.

APR loan rate is not an indication of the entire fees you need to pay for every month. More often than not, the headline rate advertised by banks and credit card companies are different from your actual monthly or yearly payment because of the addition of applicable fees as mentioned above. These fees are always written in the contract that is filled out during the application process.

Lending companies such as banks are required to disclose all the information related to payment in the documents, especially the APR, before the borrower agrees to sign the loan contract that will finalise the deal.

One advice to take when borrowing is to study the APR loan summary clearly and compare it with other banks or companies that provide the same service. For those who are getting a loan to buy a car, you can go directly to any car dealership near you and choose the … Read More

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Accounting, Audit and Tax Compliance

Thailand’s Accounting Act prescribes that all business entities in Thailand shall maintain books of accounts and supporting records in Thailand, and shall prepare annual financial statements in accordance with Thai Accounting Standards.

The Thai Accounting Act also stipulates that all business entities in Thailand will appoint an accountant, who is a Thai citizen who holds a Bachelor of Accounting degree, and will also appoint a Thai national auditor, who will audit the books and annual financial records and reports of the business entity in Thailand.

Accounting, Audit and Tax Compliance

Thus, no matter what entity is chosen in Thailand, the entity in Thailand will employ Thai national accountants with appropriate qualifications, and besides, Thai national auditors with appropriate qualifications.

Annual reporting to regulatory authorities

All types of entities are required to submit two sets of audited financial statements and annual returns under the law to the Business Development Department under the Ministry of Trade.

The audited financial statements and annual returns must be submitted within five months from the end date of the entity’s financial year. In addition to the audited financial statements and annual returns according to the law, private limited company entities and ROH entities in Thailand are also required to hold an annual general meeting of shareholders (whose meetings will be held within four months of the end of the financial year date) and additionally will submit list of entity shareholders with the Department of Business Development at the date of the annual general meeting of shareholders.

Corporate income tax compliance

All types of entities are required to prepare and file annual corporate income tax returns with the Thai Department of Revenue within 5 months from the end date of the entity’s financial year. No extensions are permitted under the Thai Revenue Code, and an automatic additional fee (interest penalty) of 1.5% per month late is paid for all submitted late tax returns.

The annual corporate income tax return is accompanied by a set of audited entity’s financial statements, and a statement by the entity’s director or manager (if possible) certifying the entity’s tax compliance.

As discussed earlier, representative office entities and regional office entities in Thailand are not subject to corporate income tax in Thailand, and annual corporate income tax returns for these entities are prepared and submitted to the Thai Revenue Department for monitoring purposes only.

Value added tax compliance

Obligations for VAT in Thailand occur when goods are sold or services are provided to consumers in Thailand, and as such, for all types of entities (other than representative offices and regional offices, which are exempt from VAT in Thailand), these entities will be asked to be responsible for and apply for a refund of VAT to the Thai Department of Revenue.

Accounting and submission of VAT refunds is done every month. The entity responsible for VAT will be responsible for its monthly VAT collection, submit VAT for that month and pay the amount of VAT obligations to the Thai Department of Revenue within the 15th day of the following … Read More

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