Today Thai Work Permit Expert got an interesting question about Work Permit Holder with Dependents in Thailand.

What kind of visa should a dependents of a Thai work permit holder apply in order
to stay in Thailand legally?

Answer:

A dependent (e.g. spouse, children below 20 years of age and parents) of a
foreigner holding a Thai work permit is suitable to apply for a Non-Immigrant
Visa “O” in order to stay in Thailand. However, unmarried or same-sex
relationships are not recognized under Thai Immigration law and therefore not
qualified as dependents to apply for a Non-O visa.

Non-O visa holders are not permitted to work unless he/she obtained a valid Work
Permit on their own. Such dependent holding a Non-O visa must first obtain a
Non-B visa to be qualified to apply for a Work Permit. For example, a foreign
husband of a foreign teacher holding a Thai work permit must apply for a change
of his visa from Non-O to Non-B if he wishes to work here in Thailand. After
obtaining a Non-B visa, he can now apply for a Thai work permit.

Meanwhile, for the children below 20 years old holding a Non-O visa, they are also
required to apply for a valid Education visa if they will study here in Thailand.

Contact MSNA, thailand workpermit expert, when you need to have a Work Permit to work in Thailand.

As required by the Thai law, all Thai registered companies, joint ventures, foreign businesses operating in Thailand and other forms of juristic entities are required to have their fiscal year-end financial statements audited by an independent auditor. This audit, sometimes called external auditing, is a kind of audit conducted in accordance with specific laws or generally accepted auditing standards on the financial statements of either a company, government sector, other legal and registered entity or organization. The auditor who conducts the audit must be appointed and independent of the entity that is being audited. The external auditor will then present an independent and fair audit report which is essential for the end-users of audited financial statements such as the entity’s investors, shareholders, financial institutions, government agencies like the Department of Business Development and the Revenue Department and the general public, etc.

With the specific auditing standards being followed, careful planning and professional thinking are required to obtain a reasonable assurance in checking the accuracy and completeness of the financial statements. The procedures also include evaluation of the significant policies and assessment of accounting standards used by the management of the entity specifically how the overall financial statements are presented.

Contact MSNA for your audit needs whether it is an external or internal audit.

Today, we discuss what to do with your work permit and visa when changing employer in Thailand.

Question:

I am a foreigner who has a work permit working for a Thai company but am moving to a new job. What should I do to ensure the transition is smooth in terms of my work permit and visa?

Answer:

Before you leave the old company, make sure you agree with them on the date of your official resignation which should be the same day that they will inform the Labour Ministry of your resignation, or agree with them the day you will return the work permit to the Labour Ministry. On the same day you return the work permit, you must take your
passport to the Immigration Bureau to cancel the extension of your stay otherwise
you will be overstaying your visa. The immigration officer will stamp in your passport that you have to leave the country right away. You will then apply for an extension of stay, which they will allow only 7 days. On the same day, your new employer should submit the work permit application for you so that it can be done within the 7 day period that you have got in your passport. While waiting for the new work permit, the new employer should get all the documents ready for extending your permit of stay from 7 days to one year based on the new work permit. Once you pick up your new work permit, you must go to the Immigration Bureau to submit the documents to extend your permit of stay right
away, which must be before the end of the 7 day period that you got.

In this case, you do not have to go out of Thailand to apply for a new Non-Immigrant Business Visa.

Please note that it is not always possible for the Labour Ministry to produce your new work permit within the 7 day period that you got. It usually takes at least 7 business days for a work permit to be ready to pick up, but your 7 day period is one calendar week.
This is when you need MSNA, Thailand work permit and visa expert to help. We will make
sure your work permit and visa transition is done correctly and within the little time limit the Immigration rule allows.

A question to Thai Work Permit Expert, Is it Possible to Use Old Non B Visa to apply for New Work Permit in Thailand?

Question: We have a registered company here in Thailand. In the event that a Non-B visa of our new foreign employee does not expire at the same time as his old work permit with his previous employer, can he use the same visa to apply for a new work permit sponsored by our company?

Answer:

1. If the Visa referred to is a multiple – journey visa granted to him by a Thai Consulate overseas, and when he comes in each time with the said visa, the immigration officer at the airport gives him a 90 day permit of stay, then his Non-B visa that he has can be used to apply for a new work permit.
2. If the Visa referred to means the permit of stay in the Kingdom that was extended to a longer period when he had his work permit (his permit of stay in Thailand was extended based on the fact that he was working with his previous employer), when his work permit expires or when he leaves the old company, he has to take his passport to the Immigration Bureau to cancel the extended permit of stay right away. The immigration officer will stamp in his passport that he has to leave Thailand right away. This means that if your new foreign employee has left the old company, or his old work permit has already expired and he has not taken his passport to Immigration Bureau to cancel the extended permit of stay, he is considered having already overstayed his permit of stay. Overstaying a permit of stay incurs a fine of Baht 500 per day (Baht 20,000 maximum) from the time that he started to overstay (in this case, the day that his work permit expired). Paying for the fine does not prevent the foreigner from being deported. In this case, he has to leave Thailand and comes back in with a new Non B visa so as to be able to apply for a new work permit.

Consult with MSNA Thailand Work Permit and Visa expert , before you make a move on your work permit and visa in Thailand.

Recently Thai Business Expert was asked how to close a Thai limited company.

In line with the growing trend of competition, profitability and economic stability, some business owners choose to wind down their Thai registered company either for the purpose of opening a new company or permanently cease doing business in Thailand. Whatever reasons you have for closing your Thailand business, legal, accounting and auditing assistance are required to ensure that the company will be closed in good faith. However, in closing down a registered company in Thailand, one must consider the following procedures:

1. Sending out invitation letters to all shareholders for an extra-ordinary Shareholders’ Meeting and publishing the letter in a local newspaper.

As prescribed by the Thai law, the company should hold a Shareholders’ Meeting to discuss the agenda of the company dissolution. An invitation letter for the meeting must be sent to all company shareholders by a registered post with an Advice of Delivery Service to ensure that the shareholders acknowledge the receipt of the letter. The same letter must be published in a local newspaper as well. This step must be done at least 14 days before the date of the shareholders’ meeting.

2. Registering the company dissolution at the Department of Business Development, Ministry of Commerce

Within 14 days from the closing date that the Shareholders’ Meeting has approved of, the
application form along with any required documents must be submitted to DBD to
register for company dissolution. The liquidator (either an outsider or one of
the company directors, whoever is appointed in the shareholders’ meeting) must
file the application at the Department of Business Development (DBD), Ministry
of Commerce, with a copy of his / her Thai I.D. card or passport. Once
everything is completed and accepted by the DBD, the officer will issue a
document which is a certification of the company’s dissolution showing the
closing date of the company.

3. Publishing the company dissolution and sending letters to inform creditors

Within 14 days from the date of dissolution, the liquidator must publish in a local newspaper the company dissolution at least once and send letters by registered mail to the
company’s creditors to inform them about the company dissolution.

4. Returning the VAT Registration Certificate (Por Por 20) to the Revenue Department (RD) in case the company is registered in the VAT system.

Within 15 days of the closing date, the company shall file Form Por Por 09 to return its VAT Registration Certificate to RD. In the event that the company fails to file it within the
specified time, there is a penalty of Baht 2,000.

Although the VAT certificate will be returned, the company is still responsible to submit its
monthly VAT return (Por Por 30) every month until the RD officer release their confirmation letter for deregistration of VAT.

5. Completing and auditing of the accounts and the Financial Statements until the closing date.

The company must prepare and complete its accounts and financial statements of the current accounting period until the date of dissolution registration and must have them
audited by a Thai auditor. The liquidator of the company must sign on the financial statements as well as the Corporate Income Tax Return Form (Por Ngor Dor. 50) for submission to the Thai Revenue Department within 150 days after the company closing date.

6. Returning the company’s Tax I.D. card to the Revenue Department

The tax I.D. card of the company must be returned to RD as well. The officer in this unit
will accept the application to return the Tax ID card only if a copy of the filed corporate income tax return and the receipt issued by the Revenue Department is attached to it.

7. Liquidating company’s assets, clearing company’s debts and returning the remaining cash to the shareholders

After step no.2 has been done, the liquidator of the company has to liquidate all assets of the company (converting them to cash), pay off the companies’ creditors and
divide the remaining cash and return it to the company’s shareholders according to the shareholding ratio.

8. Filing liquidation reports and registering the completion of liquidation process with the Department of Business Development

The liquidator has to file a liquidation report to the DBD every three months until the liquidation process is finished and the Revenue Department has issued a letter to the DBD certifying that the company owes no taxes, which will happen after step no.5. When this happens, the liquidator has to register the completion of the liquidation process with the DBD as well as submit the last liquidation report. The DBD will issue a document to certify that the company’s liquidation has been completed.

The above summary of Thai company closure procedures is intended for information purpose only. However, one must seek professional consultation before proceeding to dissolution because there are still a lot of details in the process such as closing of all bank accounts, submission of VAT on the book value of company’s fixed assets as of the closing
date within the 7^th of the following month and what to do if the company’s assets’ value is not enough to cover its debts. Careful planning of the whole process until the completion of liquidation of the company is strongly advised.

Basically, the dissolution process should take about a month to complete. However, if the company has VAT registration, it takes around 6 months to obtain the acceptance letter for
deregistration from the Revenue Department. Thus, for bigger companies, the whole process may be completed within a year or two, depending on how long the company had been in operation and whether its books of accounts were properly maintained and all tax returns were filed as required by the Thai law. The tax authorities may also invite the liquidator (or his representative) to discuss the tax matters of the company upon its liquidation.

Being highly knowledgeable and well-experienced in Thailand Business Set Up Process, we at MSNA can also assist you in the process of Thailand Company
Dissolution. We can also represent you in negotiation with the tax authority (Revenue Department).

Thai Work Permit expert today wants to discuss how to change some information on work permit in Thailand.

A holder of a Thailand Work Permit can apply for any change of information in the work permit in the event of any of the following:

1. Change or addition of category of work or nature of work;
2. Change or addition of employer;
3. Change or addition of locality of work or place of work
4. Change or addition of conditions of work under Section 26 of Working of Alien Act B.E. 2551.

The applicant is required to prepare the following documents and file it at the Office of Foreign Workers Administration. If his / her work is in a province other than Bangkok, the application must be filed at the Provincial Office of Employment:

1. Application form (W.P.6)
2. Work permit book and one copy
3. A copy of the employer’s Company Registration (updated within six months)
4. A copy of the Application Form of Value Added Tax Registration Change (Form Por Por 09)
5. Map showing the location of the employer company
6. Power of Attorney (using a form of Department of Employment) with Baht 10 duty stamp affixed and a copy of the agent’s ID Card (if the permit holder is
   unable to apply in person.)
7. A copy of employer’s work permit in case he is a foreigner. If the employer is
   not working in Thailand or has no work permit, Power of Attorney certified
   by a Notary Public and a Thai Embassy is needed.
8. A copy of employer’s ID Card in case of he is a Thai National

All documents of the employer have to be signed by the authorized signatories of the company and affix the company stamp. Meanwhile, all documents of the applicant need to be certified by him / her.

Once the application has been filed, it takes about 3 working days for the process of change of information in work permit to be finished. Then, the work permit holder (or his agent) has to pick up the work permit book at the Office of Foreign Workers Administration, Department of Employment of the Ministry of Labour and pay some fees.

Being highly knowledgeable and an expert in Thailand work permit, we at MSNA can assist you in application of such changes in your work permit.

Application for registration of a representative office in Thailand of a foreign company engaged in international trading business

Scope of Activities of a Representative Office

As required by the Thai law, the business activities that a representative office can carry out in Thailand are limited to five business activities concerning:

• Sourcing of goods or services inThailand for head office
• Checking and controlling the quality and quantity of goods purchased or hired to manufacture in Thailand by the head office
• Giving advice concerning goods of the head office sold to agents or consumers in Thailand
• Propagation of information concerning new goods or services of the head office
• Reporting on business trends in Thailand to the head office.

The above activities are regarded as service activities under List 3 (21) of the Thailand Foreign Business Law, and thus the registration of a representative office requires a Foreign Business License from the Director-General of the Department of Business Development.

General Characteristics of a Representative Office

1. It has non income-generating activities;
2. It has no authority to accept purchasing order or to make offer for selling or to negotiate for carrying out of business with person or juristic person in the country in which it is registered;
3. All of its incurred expenditures must be shouldered by its head office;
4. Normally, it is not subject to Corporate Income Tax, in accordance with the Revenue Code except for deposit interest of remitted funds from the head office has to pay tax.

Out of scope activities of a Representative Office

The following are the services that a representative office is not permitted to do otherwise it will be considered as an entity doing business here in Thailand and may be subject to the revocation of its license:

1. Purchasing order or payment of goods on behalf of the head office or its affiliated companies or any activities concerning purchasing;
2. Shipment of goods of the head office or its affiliated companies already purchased;
3. Checking and controlling the quality and quantity of goods for any companies that are not the head office nor its affiliated companies;
4. Executing after sale service concerning installation and maintenance;
5. Performing advice concerning goods that were not produced nor sold by the head office or its affiliated companies;
6. Receiving purchase order or service on behalf of the head office or its affiliated companies;
7. Coordinating in purchasing or selling on behalf of the head office or its affiliated companies;
8. Propagation of information concerning previous goods or services that are already sold inThailand;
9. Carrying out activities as middleman or agent between customers in Thailand
   and head office or its affiliated companies;
10. Planning and coordinating with any organization in terms of business on behalf of the head office or its affiliated companies;
11. Being a representative in making any contracts or activities on behalf of the head office or its affiliated companies;
12. Reporting information to any companies that are not the head office nor its affiliated companies

Government Fees for a Representative Office

Application fee (nonrefundable) is THB 2,000. If the application is approved, the government fee will be set at the rate of THB 5 for every THB 1,000 or a fraction thereof of the registered capital, with a minimum of THB 20,000 and a maximum of THB 250,000.

Tax Position of Representative Office

The representative office is required to obtain a corporate tax identification number and submit income tax returns and balance sheets, even if there was no transactions in the past accounting period.

Individual aliens and all local staff of a representative office are required to obtain taxpayer cards and pay personal income tax.

At MSNA, we can assist foreign companies in the Thailand business setup process.

There are many types of business structure to choose from if you would like to set up your own business. These include sole proprietorships, cooperatives, partnerships, limited liability companies, corporations and other forms of organization. However, these types often vary on each country based on its legal systems of setting up business. Thus, here in Thailand, the following are the common types of business structures:

1. Partnership
2. Joint Venture
3. Company Limited

1. Partnership

A partnership is a type of business owned by two or more people. Normally, each partner has unlimited liability for the debts incurred by the business. There are three common types of partnerships inThailand:

1.1 Unregistered ordinary partnerships whereas all partners are jointly and wholly liable for all debts of the partnership.

1.2 Registered ordinary partnerships whereas the partnership becomes a legal entity and its legal personality is separated and distinct from the individual partners.

1.3 Limited partnerships whereas the liability of each individual partner is restricted to the amount of capital invested to the partnership. Thus, limited partnership must be registered.

2. Joint Venture

A joint venture may be defined as a group of persons (natural and/or juristic) entering into an agreement in order to carry on a business together. Although it has not yet been recognized as a legal entity under the Civil and Commercial Code, income from this
business structure is subject to corporate taxation under the Revenue Code
which recognizes it as a single business entity.

3. Company Limited (Limited Liability)

A company limited is a type of business that has a separate legal personality from its shareholders. There are two types of limited company: private company and public company.

A private limited company is the most famous type of business structure in Thailand and is formed through a registration process which includes registration of a Memorandum of Association and Articles of Incorporation and other legal documents. It is managed by a
board of directors according to the company’s by-laws or articles of incorporation. At least three shareholders are required to form a private company limited whereas their
liability is limited to the remaining unpaid amount, if any, of the par values of their shares. Meanwhile, the liability of the directors may be unlimited if so provided in the company’s the Articles of Incorporation.

At MSNA, we make sure that we provide quality services especially in ensuring that you can register a private limited company in Thailand easily and legally. For more information, please read further on Thailand Company Registration.

A public limited company registered in Thailand may, subject to
compliance with the prospectus, approval, and other requirements, offer shares,
debentures and warrants to the public and may apply to have their securities
listed on the Stock Exchange of Thailand (SET).

Other types of business structure

Branch Office

To operate a branch of a foreign company, one has to study Thailand
Foreign Business Law. In some cases, a certificate to operate business
(issued by the Ministry of Commerce in Thailand) is enough, while others, a
license to operate business is required. If the branch of a foreign company is
to do only export or manufacturing, it does not need a certificate or license
to operate the business. It is also important to become familiarize on what
constitutes income subject to Thai tax because the Revenue Department may
consider income directly earned by the foreign head office from sources within
Thailand as subject to Thai taxes.

Regional Operating Headquarters (ROH)

ROH is a newly type of business recognized in Thailand that provides
benefits to investors who set up a regional headquarter in the country while
performing “qualifying services” to branches or associated companies located
within or outside Thailand. Read more on Regional Opearting Headquarters or ROH here.

Representative Office

It is a type of business that can be set up by a foreign company in Thailand with
the purpose of providing advice or service to its head office only. Thus, no
revenue must be incurred and recognized by this type of business. However, to
set up a representative office, one also has to consider the Foreign
Business Law of Thailand.

Thailand’s Revenue Department has been encouraging Thailand
companies and other Thai tax payers to adopt Tax Returns E-filing for a few
years.

The Thai Revenue Department has the policy to go green to
cut on its paper use and manpower. It is now more than ever encouraging the tax
payers in Thailand to file their tax returns online (E-filing). Many of MSNA’s
accounting clients in Thailand have received calls from the Thai tax authority
to ask them to start using the e-filing service on the Revenue Department’s
website. Well, sorry the page is only in Thai. You can have your Thai accountant visit that page to start filing your Thailand company’s tax returns on the internet.

To start filing tax online, a tax payer has to file form Por Or 01 “Application Form
to file tax returns via the internet” which has the name, address, tax ID and
contact information of the tax payer, on the Revenue Department’s website. Then within
15 days after filing that form, the tax payer has to physically submit the
following documents to the Electronic Tax Filing Management Office of the
Revenue Department, Revenue Department Building, 27th Floor, 90 Soi Paholyothin
7, Paholyothin Road, Phayathai, Bangkok 10400 :

1. “Agreement for Filing Tax Returns via the internet”
2. The tax payer’s Thai ID card copy (in case the tax payer is a Thai individual), or copy of the tax payer’s Thailand company papers (company affidavit, and the authorized signatories’ passport copy). Note that the papers need to be signed by their owner or in case of a Thai company, the company affidavit copy has to be signed by the authorized signatories and affixed with the company’s stamp.
3. Power of Attorney. If you will not take the above documents to submit to the Revenue Department yourself, you need to make a power of attorney to appoint someone as your agent to submit the documents for you.

After you get their approval, they will send you the user ID and password and inform
you of the first month that you can start E-filing on the Revenue Department
website.

Notes:

1. E-filing your tax returns can be done only within the deadline of each kind of tax returns. For example, the withholding tax returns of the month of August 2011 can be filed online only between 1 – 7 September 2011 and the VAT return of August can be filed between 1 – 15 September. After the deadline, they can only be filed at the Revenue Department branch in your area.
2. When you are using the E-filing service on the Revenue Department website, you will have the options to make E-payment from your bank in Thailand (where you have previously applied for internet banking service) or to take the payment to a bank to deposit into the Revenue Department’s account. The payment has to be made within the tax filing deadline of each type of returns. From the example in Note 1, the deadline for making the tax payment for VAT returns of August is by the 15^th of September.

If you hire a Thai accounting firm to file tax for you, your accountant will have
to prepare all the forms for you to apply for the E-filing service.

For Thailand taxation and accounting questions, please contact us.

Today Thai Work Permit Expert got a very useful question regarding Minimum Salary for Foreign Employees for Work Permit and Visa Extension.

What is the minimum salary for an expat in Thailand to be able to extend his visa?

When a foreigner has a work permit in Thailand, he is able to extend his permit of stay in the kingdom to one year (or what most people call one year visa). However, there is a schedule of different monthly salaries earned by different nationalities that the National Police Bureau of Thailand used to determine if they will extend the expatriate’s permit of stay.

• Countries in Europe (except Russia and eastern Europe), Australia, New Zealand, USA, Canada and Japan – Baht 50,000
• South Korea, Singapore, Taiwan and Hong Kong – Baht 45,000
• Countries in Asia (except Japan, South Korea, Singapore, Taiwan, Hong Kong, Cambodia, Myanmar, Laos and Vietnam), Eastern Europe, Central America and South America, Mexico, Russia and South Africa – Baht 35,000
• Countries in Africa (except South Africa), Cambodia, Myanmar, Laos and Vietnam – Baht 25,000

Our Thailand work permit page has information about Thailand’s work permit rules.

For any questions about work permit and visa extension for expats in Thailand, contact MSNA.