Today, we talk about the application for bringing in foreign experts and technicians to work for promoted business under the Investment Promotion Act B.E. 2520.

The Foreign Expert Services Division, Investment Services Center, Office of the Board of Investment, offers services at the One-Stop Service Center for Visas and Work Permits to facilitate the bringing in foreign technicians or experts, as well as their families, into the Kingdom to work for businesses promoted under the Investment Promotion Act B.E. 2520

The procedure has two steps:

STEP 1: The company submits an application at the Foreign Expert Services Division requesting approval of the positions of the foreigners.

This step involves submission of a document describing the company’s objectives and the necessity to bring in foreigners to work in specified positions, the personnel plan of the company showing the number of positions of foreign experts or technicians required and the periods during which foreign technicians or experts are required to work for the company.

Required documents:

1. Form for Requesting Permission to Bring in Technicians (F FR NI 01)
2. The company’s organization chart

The chart must show the organization’s lines of responsibility, specifying the positions for which approval is requested. The positions which have been approved must also be shown on the chart.

1. Form F FR NI 02 (Kor Kor Tor 41)

The following details are required:

– Position titles in English

– Job descriptions, covering all actual jobs required

– Job requirements

– Duration (The periods during which the foreigners are required)

1. A copy of Investment Promotion Certificate

A copy of the main Investment Promotion Certificate is required. In case of multiple certificates, only the ones relevant to the request should be attached.

1. A copy of the License to Commence Operations

In the event the company is not in a position to furnish the License to Commence Operations, a written explanation, stating the reason (s) and the current stage of the company’s business plan shall be required.

1. A copy of the Company Registration Certificate

The document must not be older than six months, as of the submission date.

1. A copy of a list of shareholders

An up-to-date list of shareholders and their shareholdings is required. For public companies, the document provided must contain pages showing the major shareholders and the ratio of Thai to foreign shareholders.

1. A copy of Balance Sheet and Profit & Loss Statement
2. All documents (except the ones issued by the Office of the BOI) must be signed by the authorized directors as specified in the Company Registration Certificate with the company seal affixed, or by a person duly authorized by the directors (with a Power of Attorney clearly specifying the authorized powers and duties and a thirty-baht duty stamped affixed).

Once approved, the company will receive a Letter of Approval for use as a reference in Step 2.

In case it was not approved, a written notification is issued to the company.

STEP 2: The company files an application at the Foreign Expert Services Division requesting approval to bring in foreigner to work. (Filing the approved positions)

The foreigners in question will need a non-immigrant category “B” visa to enter the Kingdom. They need to obtain the visa at a Thai embassy or consulate in a foreign country and to declare the objective of entering the country to work. Upon arrival into Thailand, their non-immigrant category “B” visa will be stamped by immigration. After that, they are required to request an extension of their stay in order to work.

Documents required in Step 2:

1. A company letter containing details and reasons

The letter shall mention the company’s intention to fill the specified positions with details of the individuals (names specified and justifications provided as to why such persons are suitable for the jobs) being proposed to fill the positions.

1. A Bio-data form

Once approved, a written notification is issued to the company, the Immigration Bureau and the Department of Employment

However, in the event that it is not approved, a written notification will be issued to the company.

Interested in obtaining BOI promotion in Thailand, contact ThaiLawyers for BOI application, Thai company registration, visa and work permit application for bringing in foreign experts and technicians to work for your company.

Today, one of our accounting clients has asked us about any tax implications of reimbursing phone and car expenses to their employees.

Question:

As a company policy, we have to reimburse phone bills of our employees provided that their personal phones are used in doing their jobs. When we pay our employees for such expense, do we have to withhold any tax? Please advise.

Answer:

Normally, when the company provides mobile phone allowance to employees, this benefit will be part of their income and therefore subject to personal income tax. But since it is in your company policy to pay phone bills to your employees who used their personal phones for the company’s business, this is not considered as employee’s benefits and therefore, is not subject to withholding tax. However, you just have to make sure that phone expenses were related to your company’s business and the employees provide the original bill. Phone expenses are to be reimbursed on an actual basis, but should not exceed THB 1,000.

Contact MSNA for your Thailand accounting and tax questions.

In the case where Thailand Board of Investment grants promotion to any applicant, the BOI may set conditions in the promotion certificate for the compliance by the promoted person in one or more areas as follows:

(1) Amount and source of capital;

(2) Nationality and number of shareholders;

(3) Size of activity including the types of products, commodities or services and the production or assembly processes and capacity thereof;

(4) Amount of local raw materials to be used;

(5) Nationality and number of workers, technicians and experts;

(6) Training and employment of manpower;

(7) Prevention and control of damaging elements to the quality of the environment;

(8) Period of time to commence the implementation of the promoted project;

(9) Period of time to place orders for the purchase of machinery;

(10)Period of time to import machinery into the Kingdom;

(11)Period of time to re-export the imported machinery after the termination of their use;

(12)Extension of time limits under (8), (9) or (11);

(13)Date of commencement of operation;

(14)Report on implementation of the project and operation;

(15)Report on the performance of the training provided by the foreign technicians and experts to the Thai personnel;

(16)Requirements that the products or commodities produced, assembled or exported conform to the standards prescribed either by the Board or other government agencies;

(17)Distribution of products or commodities produced or assembled or services rendered;

(18)Export of products or commodities produced or assembled;

(19)Requirements that the cash, bank guarantee, the Thai government securities or other securities deemed appropriate by the Board, be deposited with the Office for the purpose of guaranteeing the compliance with the conditions stipulated by the Board;

(20)Other matters relating to the provision of facilities to the competent official, granting, exercising or controlling of the rights and benefits under this Act.

Application for Thailand BOI promotion would be easier if you have a partner to guide you in the application process. Contact ThaiLawyers for BOI promotion, company registration, visa & work permit and further Thailand BOI questions.

Private company, public company, juristic partnership, foundation and association or any other legal entity with accounting period ended 31 December 2013 are required to file the annual corporate incom tax (Por Ngor Dor 50, Por Ngor Dor 52, Por Ngor Dor 55) on this Friday, 30^th May 2014 (within 150 days from the accounting period ending date). For online filing, the due date will be extended for 8 days, and since it falls on a government holiday, the last day for online filing is on Monday, 9^th June 2014.

Please make sure that you file the tax forms correctly and accurately. Contact MSNA for your Thailand accounting and tax questions.

The Director-General of the Revenue Department has recently proposed some tax measures to the Minister of Finance. Such measures are as follows:

1. Extension of 7% standard rate of VAT for an additional year after the current reduction (from 10%) expires on 30 September 2014;
2. Extension of 20% corporate income tax rate for an additional year after the rate expires at the end of the 2014 accounting period.

Once it got approved by the Ministry of Finance, the proposals will be passed to the Cabinet for review.

Contact MSNA for your Thai accounting and tax questions.

Question:

We would like to operate a factory in the industrial estate. How do you usually process the application for a factory license, say in Chonburi area? How long will it take to complete the application?

Answer:

As our company policy, we will require the first payment of our fees then, we will send to you the list of preliminary documents that we need in order to prepare the application.

It should take us 3-5 business days to finish the application after getting all information and documents from your side.

After submitting the application to the Industrial Estate Authority of Thailand (IEAT), the official will contact you to have a meeting to visit the factory site within 1-2 weeks if all documents are complete, which we will work with you for the most convenient time for the appointment of the meeting and the visit by the official. We will also consult with you and provide all support on the phone. If necessary, we will send our team to Chonburi to liaise with the IEAT officials.

It may take the IEAT official up to a few weeks (in most cases, shorter than that) for finish the evaluation of the project. Then the IEAT will notify us of its approval and we will request for the fees to pay to the IEAT before the licenses are issued.

Once we obtain the license, we will need 2 business days to translate it for you.

Contact MSNA for company registration, BOI promotion application and factory license application in Thailand.

Is there such thing as house tax in Thailand? If so, what is the tax rate? How about the land where the house is situated?

Answer:

In Thailand, the rate of tax is 12.5% of the actual or imputed annual rental value of the property of owners of land or house and buildings, used for any purpose, with the exception of owner-occupied residences.

If houses or buildings on the land are owned by a person other than the owner of the land, the owner of the buildings is liable for the tax.

Damaged buildings are subject to a reduced valuation in proportion to the extent of the damage. Reductions also made pro rata where buildings have become unoccupied during the year.

Exceptions to the house and land tax are as follows:

(a) Royal palaces owned by the Crown

(b) Buildings owned by the government and which are utilized for public purposes

(c) Public hospitals and educational institutions not operated for profit

(d) Religious buildings

(e) Buildings unoccupied for a period of 12 months or more

(f) Buildings used as the personal residence of the owner

The taxpayer is required to file a tax return within February of each year at the municipal or district office where the land and buildings are located. Tax must be paid within 30 days after notification of the tax assessment.

In case of failure to file a tax return, there will be a penalty of Baht 200.

Furthermore, a penalty of 2.5% of the tax liability will be imposed if the tax is paid during the first month following the due date for payment, rising to 5% for the second month, 7.5% for the third month and 10% for the fourth month. After the fourth month, the authorities have the right to seize and sell the property in order to collect the arrears.

Contact MSNA for your Thai accounting and tax questions.

We want to setup a Thai company and engage in hotel business. Can we be eligible for BOI promotion? What are the benefits if we got promoted?

Answer:

Yes, you can be eligible for BOI promotion provided that you meet the criteria and conditions set by the Board of Investment. For each hotel that you will build, there must have at least 100 rooms in it. Also, the minimum investment, not including cost of land and working capital, should not be less than Baht 500 million.

Once you got promoted, you can receive BOI privileges depending on your hotel location:

1. If it is located in Zone 1, Zone 2, Hat Yai district of Songkhla or Muang district of Chiang Mai, you will be granted only non-tax incentives.
2. If it is located in Zone 3, you will receive only an exemption of import duty on machinery and other non-tax privileges.
3. If it is located in the provinces of Kalasin, Nakhon Phanom, Narathiwat, Nan, Buri Ram, Pattani, Phayao, Phrae, Maha Sarakham, Yasothon, Yala, Roi Et, Si Sa Ket, Sakon Nakhon, Satun, Surin, Nongbualamphu, Chaiyaphum, Nongkhai, Ubon Ratchatani, Udon Thani and Amnat Charoen, you will receive the rights and benefits according to the BOI Announcement No. 1/2543 dated August 1, 2000.

Interested in getting BOI promotion for your company in Thailand, contact ThaiLawyers for more information.

Is there any exemption from personal income tax in Thailand?

Answer:

Yes, there are certain types of income that are exempt from personal income tax in Thailand. In respect of income from employment, money derived in the form of per diem, traveling expenses and certain fringe benefits such as medical treatment are tax exempt. The exemptions also cover the share of profit obtained from a non-juristic body of persons, maintenance income derived under moral obligation, corpus of a legacy or inheritance, income of a mutual fund or from the sale of investment units in a mutual fund, etc.

Contact MSNA for you Thai accounting and tax questions.

When applying for a factory license in Thailand, the Ministry of Industry has the power to issue regulations for all of the categories regarding:

1. Description, category, or type of machinery and equipment to be used in the operation of the factory business
2. Location, environment, interior and description of the factory;
3. Requirements for workers who have specific knowledge to carry out any duties in the factory;
4. Process of manufacture and provision of equipment to prevent, stop or alleviate danger, damage or disturbances that may occur to the public or property in the factory or nearby premises;
5. Standards and procedures for the control or release of waste, pollution or anything else arising from factory operations which may affect the environment;
6. Provision of necessary data and documents by the factory operators to ensure compliance with the law
7. Provision of anything that may affect the safety of work operations.

If there is an inspection of a factory or machinery to ensure compliance with the Act, a private body may carry out the inspection and report in place of government officials, provided the private persons follow the regulations concerning the Act as per the Government Gazette.

Licenses granted are valid until the end of the fifth calendar year from the year in which the business starts operations, except in the case of the relocation of the factory or of the dissolution of the operation in the factory business (which also refers to the event that the factory is transferred, leased or subjected to hire purchase). In these cases, the license is regarded as having expired on the date of issuance of a license to the factory’s new operators, or on the date of dissolution of factory business.

Applications for renewal of license must be submitted prior to the date of expiration, along with a fee of 100,000 Baht. Following submission, renewal is considered to have been extended unless there is a specific order otherwise. If the application is submitted within 60 days of the expiration date, it will be processed normally, but an additional fine of 20,000 Baht will be levied. Once the expiry date is reached, an application for a renewal must be made within 60 days. Upon expiration of the sixty-day period, the application will be treated as if it were a new application.

Contact MSNA for getting factory license for your business in Thailand.