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CPA Thailand — Paper: Law 1 — Business & Securities Law (กฎหมายที่เกี่ยวข้องกับการประกอบวิชาชีพสอบบัญชี 1, TFAC)

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Sample CPA Thailand — Paper: Law 2 Practice Questions

Try these sample questions to review concepts for the CPA Thailand — Paper: Law 2 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 52+ question experience with AI tutoring.

1Under Section 39 of the Thai Revenue Code, which of the following entities is categorized as a 'juristic company or partnership' (บริษัทหรือห้างหุ้นส่วนนิติบุคคล) and subject to Thai Corporate Income Tax (CIT)?

A.An unregistered ordinary partnership (ห้างหุ้นส่วนสามัญไม่จดทะเบียน)

B.A joint venture (กิจการร่วมค้า) operating commercial business in Thailand

C.A sole proprietorship registered under the Commercial Registration Act

D.A non-juristic body of persons (คณะบุคคลที่มิใช่นิติบุคคล)

Explanation: Section 39 of the Revenue Code defines a juristic company or partnership to include limited companies, registered ordinary partnerships, limited partnerships, joint ventures, foundations, associations carrying on business, and foreign juristic entities operating in Thailand. A joint venture (กิจการร่วมค้า) is explicitly treated as a taxable juristic entity under Section 39. Unregistered ordinary partnerships and non-juristic bodies of persons are taxed under Personal Income Tax (PIT).

2Apex Co., Ltd., a calendar-year taxpayer, acquired and put into service a new factory building (permanent structure) on 1 July 2026 at a total cost of THB 10,000,000. Under Royal Decree No. 145, what is the maximum tax depreciation allowable for the accounting period ending 31 December 2026 (assuming a 365-day year and 184 days in service)?

A.THB 500,000

B.THB 252,055

C.THB 1,000,000

D.THB 126,027

Explanation: Under Royal Decree No. 145, the maximum straight-line rate for permanent buildings is 5% per year (THB 10,000,000 * 5% = THB 500,000 per full year). Section 65 bis (2) requires prorating depreciation based on the number of days the asset was acquired and placed in service during the accounting period: THB 500,000 * (184 days / 365 days) = THB 252,055.

3Beta Industrial Co., Ltd. purchased heavy production machinery on 1 January 2026 for THB 6,000,000. For financial reporting, management selected a useful life of 3 years using straight-line depreciation with zero residual value (recording THB 2,000,000 in accounting depreciation). For tax purposes, the maximum allowable rate under Royal Decree No. 145 is 20% per year. What tax adjustment must be made in the company's 2026 Corporate Income Tax return (P.N.D.50)?

A.Add back THB 800,000 as non-deductible depreciation expense to accounting net profit

B.Deduct THB 800,000 from accounting net profit

C.Add back THB 2,000,000 as completely disallowed depreciation expense

D.No tax adjustment is required because financial accounting estimates are accepted for tax purposes

Explanation: Under Royal Decree No. 145, the maximum allowable tax depreciation for machinery is 20% per annum, which equals THB 1,200,000 (THB 6,000,000 * 20%). The company recorded THB 2,000,000 in its accounting records. Because tax depreciation cannot exceed the statutory ceiling under Section 65 bis (2), the excess accounting depreciation of THB 800,000 (THB 2,000,000 - THB 1,200,000) is a non-deductible expense that must be added back to accounting net profit on Form P.N.D.50.

4Under Ministerial Regulation No. 186 (as amended by No. 374), which condition must be met for a commercial creditor to write off an unsecured trade receivable not exceeding THB 200,000 as a tax-deductible bad debt without filing a court lawsuit?

A.The debt meets Clause 3's eligibility conditions, documented reasonable collection efforts have failed, and litigation costs would be disproportionate to the amount recoverable

B.The creditor must obtain a court receiving order (คำสั่งพิทักษ์ทรัพย์) from the Central Bankruptcy Court

C.The debtor must be formally deregistered by the Department of Business Development

D.The creditor must hold a meeting of creditors and approve a formal debt composition plan

Explanation: Clause 6 permits the small-debt route when each debtor's debt does not exceed THB 200,000, meets Clause 3, and remains unpaid after documented reasonable collection efforts. Litigation must be uneconomic relative to the recovery. Clause 6 does not impose the claimed fixed sixty-day waiting period; Clause 3 also excludes specified director or managing-partner debts and requires an enforceable, unexpired debt.

5During 2026, Gamma Trading Co., Ltd. reported accounting net profit of THB 5,000,000. In its income statement, the company included an allowance for doubtful accounts (ค่าเผื่อหนี้สงสัยจะสูญ) of THB 400,000 based on aging analysis under TFRS. Actual bad debts written off during the year that strictly complied with Ministerial Regulation No. 186/374 amounted to THB 150,000 (which was charged against the allowance account). What is the company's adjusted net taxable profit for 2026?

A.THB 5,400,000

B.THB 5,250,000

C.THB 4,750,000

D.THB 5,000,000

Explanation: Under Section 65 ter (1), an allowance for doubtful accounts is a reserve and is not tax-deductible, requiring an add-back of THB 400,000. However, actual bad debts written off during the period complying with Section 65 bis (9) and Ministerial Regulation No. 186/374 of THB 150,000 are tax-deductible. Because the THB 150,000 was debited directly to the allowance account and not charged as an expense in the profit and loss statement, the net tax adjustment is an add-back of the net non-deductible reserve: THB 400,000 - THB 150,000 = THB 250,000. Adjusted tax net profit = THB 5,000,000 + THB 250,000 = THB 5,250,000.

6For an ordinary non-bank company computing tax in baht, which statement describes permitted year-end foreign-currency conversion methods under current Section 65 bis (5)?

A.A consistently applied permitted method includes the BOT-calculated average buying/selling mid-rate for both, or average buying for assets and average selling for liabilities

B.The company may choose whichever permitted method gives the lowest tax separately for each individual balance every year without approval

C.Revaluation is prohibited for tax purposes until realized upon actual cash settlement

D.Assets must use the selling rate and liabilities must use the buying rate

Explanation: The current provision permits the BOT-calculated average buying/selling mid-rate, as well as the average-buying-assets and average-selling-liabilities method, and other qualifying methods specified in the law. The selected method must be applied consistently unless a change is approved. The former assertion that the mid-rate is prohibited is outdated; simply retaining acquisition rates is not the general year-end conversion rule.

7Under Section 65 bis (6) of the Revenue Code, what is the statutory rule regarding the valuation of inventory (สินค้าคงเหลือ) remaining on hand at the end of the accounting period?

A.Inventory is valued at the lower of cost and market; the selected cost-computation method is used consistently unless a change is approved

B.Inventory must always be valued strictly at original historical cost regardless of net realizable value

C.Inventory must be revalued to current replacement market value, with all unrealized gains credited to taxable profit

D.Inventory must be written down using a blanket percentage obsolescence reserve approved by the external auditor

Explanation: Section 65 bis (6) values closing inventory at cost or market, whichever is lower, and carries that amount forward as opening inventory. It separately requires consistent application of the method used to calculate cost unless a change is approved. This does not give an unrestricted choice to replace the lower-of-cost-and-market requirement with another valuation basis.

8Delta, an unlisted Thai limited company, receives THB 2,000,000 in dividends from another Thai company. It holds 30% of that company's voting shares, with no direct or indirect cross-shareholding, throughout at least three months before and three months after the dividend date. Under Section 65 bis (10), how is the dividend treated?

A.The entire THB 2,000,000 is 100% exempt from Corporate Income Tax

B.THB 1,000,000 (50%) must be included in taxable gross income

C.The entire THB 2,000,000 must be included in taxable gross income at the 20% rate

D.Only THB 600,000 (30%) is exempt from Corporate Income Tax

Explanation: The stated ownership and holding-period conditions qualify this domestic dividend for full exclusion from Delta's taxable income. The unlisted recipient holds at least 25% of voting shares, the payer has no prohibited direct or indirect holding in it, and the three-month periods on each side are satisfied. The exemption applies to the dividend received rather than only 30% of it.

9Mu, an unlisted Thai company, receives a THB 1,000,000 dividend from another Thai company. It holds only 10% of voting shares, with no cross-shareholding, and retains them throughout at least three months before and three months after the dividend date. Under Section 65 bis (10), how much dividend income enters its tax computation?

A.THB 500,000

B.THB 0

C.THB 1,000,000

D.THB 100,000

Explanation: Under Section 65 bis (10) paragraph one, an unlisted Thai company holding less than 25% of voting shares in another Thai company is entitled to exempt 50% of the dividends received, provided it held the shares for at least 3 months before and 3 months after the dividend distribution. Therefore, 50% of THB 1,000,000 = THB 500,000 is exempt, and the remaining THB 500,000 must be included in taxable income.

10Theta Co., Ltd. (unlisted) purchased 30% of the voting shares of Iota Co., Ltd. on 1 May 2026. Iota declared and paid a dividend on 1 June 2026 (THB 800,000 to Theta). Theta sold all its shares in Iota on 15 July 2026. How must Theta treat this dividend under Section 65 bis (10)?

A.Include the entire THB 800,000 in taxable gross income because neither the 3-month prior nor the 3-month post holding requirement was satisfied

B.Exempt the full THB 800,000 because Theta held 30% of the shares on the dividend declaration date

C.Exempt 50% (THB 400,000) and include 50% (THB 400,000) under the general rule

D.Exempt the dividend entirely because total share ownership exceeded 60 days

Explanation: Section 65 bis (10) paragraph three dictates that the dividend exemption (both 100% and 50%) is conditional upon the receiving company holding the shares for not less than 3 months prior to the acquisition of dividends and not transferring them for at least 3 months thereafter. Because Theta held the shares for only 1 month before and 1.5 months after the dividend, the condition failed completely, making the entire THB 800,000 fully taxable.

About the CPA Thailand — Paper: Law 2 Exam

Independent practice by OpenExamPrep for CPA Thailand — Paper: Law 2. This is an independent English-language MCQ study adaptation, not an official translation, format simulation or substitute for handwritten cases and mandatory practical training. This 52-item bank offers selected practice in corporate income tax, VAT, specific business tax, withholding and tax administration, the Accounting Professions Act and professional ethics; it does not claim exhaustive coverage of the official scope.

Exam sponsor: สภาวิชาชีพบัญชี ในพระบรมราชูปถัมภ์ — Federation of Accounting Professions under Royal Patronage (TFAC). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

TFAC's paper-based four-hour sitting combines objective answer sheets and handwritten subjective solutions. Answers are in Thai, with English technical terms permitted. The sitting notice specifies no separate oral examination or coursework assignment; supervised audit training is a separate licensing requirement.

Time Limit

Four hours (240 minutes).

Passing Score

At least 60% for this subject; each passed subject may be retained for up to seven years under the current amendment.

Exam / Certification Fees

THB 1,000 per subject.

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

TFAC — CPA Candidate Information Portal · Source checked 2026-10-18Official sitting schedule, subject notices, seven-year rule and Thai written response guidance.
TFAC — Law 2 Official Scope (updated August 2026) · Source checked 2026-10-18Official paper scope; no numeric topic percentages are published in this document.
TFAC — Notice No. 31/2569 · Source checked 2026-10-18Examination schedule for sitting 64: Law 2 on 22 November 2026; fee THB 1,000.
TFAC — Seven-year result-retention amendment · Source checked 2026-10-18Current subject-result retention, superseding the former four-year rule.
Revenue Department — Corporate income tax provisions · Source checked 2026-10-18Current Sections 65–76 and linked instruments.
Revenue Department — Bad-debt regulation 186, as amended · Source checked 2026-10-18Current small-debt and litigation conditions.
Revenue Department — Donation deduction calculation · Source checked 2026-10-18Order ป.52/2537 and the ordinary net-profit-based limit.
Revenue Department — VAT provisions · Source checked 2026-10-18VAT tax points, exemptions, invoices and input credits.
Revenue Department — Specific Business Tax · Source checked 2026-10-18Taxable activities, exemptions, bases and administration.
TFAC — Accounting Professions Act B.E. 2547 · Source checked 2026-10-18Officially hosted Act and English translation.
TFAC — Ethics framework · Source checked 2026-10-18Six Thai fundamental principles, including transparency.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

17 of 52 practice items; not an official exam weight

Corporate income tax

Tax adjustments, depreciation, bad debts, foreign currency, dividends, donations, losses and SME tax with credits.

15 of 52 practice items; not an official exam weight

VAT and specific business tax

Zero rating versus exemption, invoice requirements, non-creditable input, tax bases and specific-business-tax calculations.

5 of 52 practice items; not an official exam weight

Withholding and administration

Ordinary domestic and cross-border withholding, surcharges, assessment penalties and appeals.

5 of 52 practice items; not an official exam weight

Accounting professions legislation

Statutory profession definition, professional-firm registration, standard setting, licensing and bookkeeper registration.

10 of 52 practice items; not an official exam weight

Professional ethics

TFAC's six principles including transparency, threats, independence, gifts, fees and disciplinary sanctions.

Preparing for the CPA Thailand — Paper: Law 2 Exam

What You Need to Know

Passing score: At least 60% for this subject; each passed subject may be retained for up to seven years under the current amendment.
Assessment: TFAC's paper-based four-hour sitting combines objective answer sheets and handwritten subjective solutions. Answers are in Thai, with English technical terms permitted. The sitting notice specifies no separate oral examination or coursework assignment; supervised audit training is a separate licensing requirement.
Time limit: Four hours (240 minutes).
Exam / certification fees: THB 1,000 per subject. Official sources

Using Our Practice Resources

Work through all 52 available questions
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CPA Thailand — Paper: Law 2: Suggested Study Strategy

1Reconcile accounting profit to taxable profit, calculate the tax and then apply credits in separate stages.

2Verify tax dates, exemptions and any special reduced-rate conditions in current Revenue Department publications.

3Include transparency when studying TFAC's ethical principles and practice written Thai legal reasoning.

Frequently Asked Questions

Does this bank reproduce the official assessment?

This is an independent English-language MCQ study adaptation, not an official translation, format simulation or substitute for handwritten cases and mandatory practical training. The official assessment uses Thai paper objective answers and handwritten subjective solutions. English technical terms are permitted, which does not make the assessment English-language.

What training and result-retention conditions apply?

Recognized accounting education and approved training conditions apply. Auditing 1 and 2 require at least one year and 1,000 training hours before entry; final licensing ordinarily requires at least three years and 3,000 hours plus the other statutory conditions. Each passed subject can be retained for up to seven years under the current amendment; this is not a promise that passing the first subject starts one fixed deadline for all results.

What scope version is relevant to the 64th sitting?

TFAC's Law 2 scope was updated in August 2026. It covers the Revenue Code rules relevant to companies and juristic partnerships, tax administration, the Accounting Professions Act and its instruments, including current membership and ethics rules. This bank is selected practice, not a claim to cover every listed instrument.