Tax And The Visa Run
A Jungle resident tells us he was asked by the Thai Embassy in Singapore to produce a return ticket to Bangkok and 1000 Singapore dollars before they’d give him a 2/3-month tourist visa. Just FYI! Seems there may be another purge in the works with the Inland Revenue targetting small businesses and tax fraud in general. Are your paper work and books up to date? A Thai lawyer takes time out to clarify the terms of work permits and the obligations attached thereto:
“Once you get a work permit, then you can extend your stay in Thailand without needing to do visa runs if you meet the minimum salary requirements (in addition to other requirements) and pay your taxes.
These minimum salary requirements were updated October 1, 2006 and are:
Australia, Canada, Europe, Japan, USA 50,000 baht/month
Hong Kong, Singapore, South Korea, Taiwan 45,000 baht/month
Other Asian Countries not listed, Central and South America, eastern Europe, Mexico, Russia, South Africa, and Turkey 35,000 baht/month
Africa, Burma, Cambodia, Laos, Vietnam 25,000 baht/month
Notably, USA, Japan, and Canada salary requirements were previously set to 60,000 baht/month in 2004 but were reduced. There was previously an exemption for foreigners working for Thai newspapers, but I don’t see that mentioned anymore.
Between Thailand and your home country (or possibly the multinational company’s), there is the issue of double taxation. You should also see the section on Income Tax and resolve legal matters with your employer or your overseas associates so that you are not heavily double-taxed, i.e., so that you don’t pay full income tax in both Thailand and your home country, or to your employer’s home country.
Those who are coming to work for someone else should have a contract with their employer prior to arriving, and it should spell out your employer’s support for your presence in Thailand as well as tax matters. Foreigners have arrived here and experienced disappointments and difficulties with both employers and officialdom, as well as achieving clarification on details later rather than sooner. Your work permit is exclusive to one employer and you can be in the most serious trouble if the authorities learn you are working for more than 0ne employer and earning accordingly.
As is commonly discussed in social circles, many people have worked illegally in Thailand for trusted employers, usually for a short time, and have no complaints. On the other hand, there are countless reports by people who come here and do work for people they don’t know, who in turn refuse to pay them in full or part. Without a work permit or a company (plus written communications or witnesses or other proof of the work), these people have no legal leg to stand on, and in fact can get into some trouble by telling the authorities that they worked illegally (it depends on the situation and the particular authorities). This is not uncommon.
The usual penalty for working in Thailand in a blatantly illegal way is summary deportation. Immigration officials may bring you to your hotel or apartment to collect whatever things you wish to bring with you, and then bring you to the airport. You can also be detained by immigration until you make some of your own arrangements. All of this depends on the overall situation.
The best known cases of this happening were “guided”. (There are various ways to find out information in Thailand such as who did what to whom. At a certain level, “There are no secrets, just illusions [of secrets].”)
It is always best to do things the right way and know the right people.
Also, don’t make enemies, do bad things, or associate with the wrong kinds of people. There are at least two sides to every story.
If you are an employee, then you should expect your employer to be up to date on all pertinent matters and to keep you abreast, and you should double-check them.
Courtesy: www.thailandguru.com