As an accounting firm that provides accounting service to foreign companies in Thailand and also work permit service to foreigners, MSNA gets asked by our clients very often about employing foreigners when they don’t have a work permit. What should they do to be able to expense the salary?

If your Thailand company employed a foreigner who does not have a work permit then your company is hiring an illegal foreign worker, which is against the law. You will not be able to take advantage of the expense. The same applies to the case where he has a work permit with another company, but will work for your company too. If you hire a foreigner, your company must sponsor his work permit so as to be legal for the both of you. Or in other words, his work permit has to have your company as one of the employers.

If you hire foreigners who work outside of Thailand (Some of our clients are software companies and hire foreigners who work outside Thailand), this way, they don’t need to have a work permit. However, you need to withhold 15% when you pay them each time. In this case, you can use their invoice and a copy of their passport as the supporting documents for the expense and you have to submit the withholding tax of 15% to the Revenue Department within the 7th of the month following the payment.

Contact MSNA for your tax and work permit questions.