floridaguy

I hope that this is not a redundant post. If so, I appologize, but I could not find any topics that satisfied my questions.

I was born in Thailand as a US and Thai citizen, and moved to the States when I was 8 mths old; I haven't been back to Thailand. I am moving permanently to Thailand in Jan 2009, and will be establishing my status as a Thai citizen, getting ID card, etc.

How do I establish credit? I have a long credit history in the US, with may houses, cars, credit cards. But in Thailand, it will be as if a 37 year old man appeared out of no where! Will I be able to get home loan, car loan, credit cards, establish utilities for my home, get a mobile phone, etc, etc.

We have a trick in the States that clients with no credit history could quickly establish credit by being added to someone else's credit cards, thereby giving them years of credit in an instant. Is this possible in Thailand? What other ways can I quickly establish credit?

Thank you! This has been absolutely the best resource for making my move from the US to Bangkok easier and smoother.

Thaihome, thank you very much. That was the best explanation so far of the tax implications of my salary. I usually get the generic "split your income to save tax" explanation. My company is a little new to the foreign operations arena, and I feel I will have to educate them on the income situation.

I am leaving in 3 weeks for Bangkok. I am afraid there won't be enough time to consult with a tax advisor here in the States before I leave. Are there good reputable advisors in Bangkok that can help me with the concept of offshore/split income, without violating his own ethics?

Thanks

Tax wise there are two routes you can follow.

Split Salary: You declare the living allowance as Thai income and pay Thai tax on it. The salary and bonus are paid offshore and Thailand does not know about it. This is common practice, but it is technically illegal the Thai Revenue Dept does try to sniff this out. For US taxes you declare all the income and will pay taxes on the amount over the 87K foreign income exclusion plus some more for the housing exclusion.

Full disclosure: All your income, salary, living allowance, bonus, home leave, etc is declared Thai income and you pay Thai Tax on it. The US part stays the same, except now you can take foreign tax credits on the Thai Tax you paid on the income over the 87k. This is the legal way to go.

Under either method, You could still end up paying more tax (Thai and US) then you would if you were working in the US at that pay. Most companies do a tax equalization program that give you money (taxable of course) to make up the difference.

You should negotiate the living allowance as a Baht amount so you are not subject to FX fluctuations with it. That should be paid into a Thai bank account. Your USD salary and bonus can be paid in USD into a US bank account and still be considered foreign income.

As you are setting up the operations in Thailand you need to get some good tax advice for yourself and the company or branch office you will be setting up. The two are interrelated as how the company is set up will impact how you get paid. This can get very complicated, get help.

TH

UPDATE

Flew up to Michigan to meet with the CEO this past weekend. He offered me the following (all USD):

$75000/yr base salary

$3000/month living expenses

$20000/yr guarenteed 1st year bonus. A friend, the VP of sales, says that $50000-60000 year end bonuses are typical

2 return trips per year to the US

Relocation paid there and return trip

Standard expense account, personal assistant, mobile phone, company car (no mention of personal driver).

This constitutes a guarenteed minimum of $131,000/yr USD, plus benefits and perks. This job has evolved to be the Director of Asian Operations. I report to the VP of Foreign Operations and to the CEO directly. I will be establishing operations in Thailand, finding and leasing an office, and hiring 20-30 local staff members.

I accepted the position. I am leaving for Bangkok in 4 weeks. I feel that this was an opportunity I could not pass up. I am direct in line to succeed the current VP. My friend, the VP of Sales, whom I have been friends with since we were 10 years old, has told me that they are looking to replace the VP in Asia, and I could possibly have the job in 2-3 years. He is tired of being in Asia, and wants to return to the US.

I know that this is a great package. I am happy with it. I now need to determine the best way to save money on Thai and US income taxes, to establish and maintain my status as a Thai national, and brush up on my mothers native language.

Any advice on saving taxes? A local income paid in the US of my base salary + bonus, and the $36000/yr living expenses paid in Thailand? What would be the best options?

If you think it's a salary, good on ya. To me it sounds like a freelance relationship. Are you working every day for example? Are you paid for holidays? What happens if you're sick? Is a month 22 days or 31 days? Do you get paid if you're not called to work? If the want to get rid of you, what severance rights do you have?

Anyway, US$750 after tax based is around 25,000 a day. Extrapolate that to a regular salary and you're talking 520,000 take home per month, or around 750k before tax. It's a good income, but not spectacular. And it's certainly not unusual for other expats like us on regular contracts with all the associated benefits mentioned above.

Actually it was + US$ 750 a day, 750 a day was cited as being an average type day rate, as regards freelanch, I would define this a someone who works for multiple companies on short term basis, typically through their own company and takes care of their own taxes, which is not the case in the examples given, indivduals are working on long term contracts with one company, typically 4 years + so per my definition.... not freelance.

Take home based on the your examples ie THB 750k is actually after tax, not gross based on average dayrate.

As regards the number of days again this varies could be 22 day month could be 31 depends on what is going on and needs to be done.

Granted you dont get paid if you are not in work, and of course its a contract position, if the contract gets cancelled, you are out of a job, and suppose severance per Thai law could be applicable, never had to test this one.

So if we do the arithmatic...based on a 22 day month as a minimum, on average a person in these circumstances would be taking home around US$198k a year minimum after tax, with some extra days worked, could be looking at US$ 240-250k after tax, which in just about any country in the world is not bad money.

Having worked both contract and staff (with all the supposed benefits) personally for me I prefer the contract route, very simple arrangement, you work, you get paid the agreed to dayrate...

Suppose the next question would be what happens if you get sick and cant work ?.....Fully comp medical provided, with a clause by which a dayrate of X number of pounds a day will be paid to offset loss of income, while hospitalised, for upto a period of 3 months

Not suggesting that at all. He hasnt told us what the offer is, although as he says it's below his US salary he implies it's not that low.

My point is this. He is relatively lucky. I imagine the salary is what I call a local salary +, which seems to be a new band of pay range. We can't just divide salaries into local salaries and GH's definition of expat salaries.

The huge expat salaries are for those roles which CAN'T be filled locally. But there are a range of middle management jobs offered to farangs which COULD be done locally, but for some reason the companies want expats. They will not pay huge salaries and school allowances, but they WILL pay significantly higher than local rates. I have no firm figures on this, but based on experiences in my old company I imagine the role would be paid around 200,000 a month for an expat, a significant premium on the 70-80k a local might expect to earn.

In the end, it's up to the individual. How much does he want to be here?

The offer is $58000 US dollars per year. I haven't really gotten into all the details yet, so I don't know about any allowances, health care, car housing, etc. A project manager in the US usually earns about $61000 US dollars per year. According to Kelly Services, a Thai project manager earns about 720000 Baht per year or about $21000 US dollars per year.

So I guess it does seem like a reasonable offer, but I had hoped for more just for the hassle of uprooting my family to Thailand.

Does $58000 US dollars per year offer a "comfortable" living? By that I mean a nice house or condo in a good, safe part of Bankok, good schools for my kids, a car, and money for recreation, and then some to invest? That salary is just comfortable here in Tampa Florida.

If you are going to uproot your family to live in Thailand, don't you want a bit more then just to get along like you are in Tampa right now? Shouldn't there be some long term goal? Like save a ton of money?

Working overseas, you should be able to put away at 50-75% of your take home pay. you do this because most things are paid for (housing, school, etc) and they pay you more to work here.

TH

That is exactly my concern. I was hoping to save most of my salary. I didn't realize the cost of living in Thailand would be as high as everyone here is suggesting

Your salary should be higher than you are getting in your home country 'cos they are relocating you half way across the world.

What about housing allowances? Airfares? School fees? These should be taken into considerationas well.

And get your salary paid Staeside with a local 'salary' paid in Bangkok for local tax purposes unless you have a tax equalisation package.

Your salary may be lower but your taxes will be higher than what you pay in the USA, unless you get paid a portion of it offshore.

Bangkok (for the average Western Expat of Executive Level) is not that much cheaper unless your housing is paid for.

Of course others will come on here and say they can eat for 40 baht on the street everyday but in my many years here, I have yet to see too many MD's sitting on the side of the road in their dark blue suits in our balmy weather, slurping back a bowl of noodles.

While some in your company may argue that the overall cost of living is cheaper here than most major cities in the USA, keep in mind that they are asking your to travel to a developing country and deal with the stress of living / working in a place very foreign to you.

If anything, they should be paying you more than what you make back home.

How does getting two salaries benefit me? Is the US paid salary taxed in the US at US rates, and then the locally paid salary taxed in Thailand at Thai rates? Can you explain this if further detail please?

Not suggesting that at all. He hasnt told us what the offer is, although as he says it's below his US salary he implies it's not that low.

My point is this. He is relatively lucky. I imagine the salary is what I call a local salary +, which seems to be a new band of pay range. We can't just divide salaries into local salaries and GH's definition of expat salaries.

The huge expat salaries are for those roles which CAN'T be filled locally. But there are a range of middle management jobs offered to farangs which COULD be done locally, but for some reason the companies want expats. They will not pay huge salaries and school allowances, but they WILL pay significantly higher than local rates. I have no firm figures on this, but based on experiences in my old company I imagine the role would be paid around 200,000 a month for an expat, a significant premium on the 70-80k a local might expect to earn.

In the end, it's up to the individual. How much does he want to be here?

The offer is $58000 US dollars per year. I haven't really gotten into all the details yet, so I don't know about any allowances, health care, car housing, etc. A project manager in the US usually earns about $61000 US dollars per year. According to Kelly Services, a Thai project manager earns about 720000 Baht per year or about $21000 US dollars per year.

So I guess it does seem like a reasonable offer, but I had hoped for more just for the hassle of uprooting my family to Thailand.

Does $58000 US dollars per year offer a "comfortable" living? By that I mean a nice house or condo in a good, safe part of Bankok, good schools for my kids, a car, and money for recreation, and then some to invest? That salary is just comfortable here in Tampa Florida.

I am considering a job in Bankok with a US company that has a Branch Office in Bankok. The position is Project Manager. This would involve hiring Thai companies to do various jobs at local US plants and factories, such as janitorial services, pest control, lawn service, etc. What should I expect to receive? Does anyone know any US citizens working as Project Managers in Thailand and approximately what they are earning, in US dollars? They are offering a salary that is lower than what I would earn in the same position here in the US, but I know that the cost of living is lower in Thailand.

Any thoughts would be greatly appreciated. I have been unable to find salary information of this nature anywhere.

You're automatically Thai because you have a Thai parent. The general/basic route to Thai citizenship for Thais (whether born abroad or locally) is:

1) acquire Thai birth certificate

2) have name added to local house registry (this can be ANY house registry... but preferably a home belonging to a family member or relative)

3) id card issued (same day as being added to house registry typically)

4) passport made (optional, but convenient)

It can be anything from completely hassle free to somewhat troublesome (at the two steps that count most: steps 1 and 2 above...), but rest assured that with a little patience, you'll eventually get it, and IMO it's well worth it.

Could give you more specific advice if you wouldn't mind providing more details:

-for instance, did your father register your birth?

-any chance that either of your parents have a copy of your birth certificate?

-were you ever added to any house registration? (then it's just a simple issue of getting a new id card issued... once you locate whoever has that house registry book)

-if none of the above, do you at least know what hospital you were born at? there's a chance you might still be on the hospital's "house registry" and were never transferred to another house registry.

-if parents deceased, do you have other relative's who could be intervied by the amphur as witnesses that you are indeed who you say you are, etc., etc.

I should also add that your Thai birth certificate doesn't necessarily have to be the one your parent(s) got for you by presenting your Thai hospital birth documents to the local amphur office a few weeks after you were born. If one or both of your parents are still alive, they can STILL take other legal birth documents (preferably with you in tow) to any Thai embassy or consulate anywhere in the world and they will issue you a Thai birth certificate. For instance for myself, I didn't get a Thai birth certificate until I was 20-21, at the Thai consulate in LA, my parents just presented my State of Texas issued birth registration and my St. David's Hospital (Austin) birth certificate with my parents names on it. I

Hello everyone, new and first post. I was born in Thailand to a Thai mother and an American father. I automatically was a US cititzen. I didn't know that I am considered a Thai citizen also. My half brother, same mother, Thai father, retired recently and moved to Thailand and told me that I receive some kind of ID card every year to a relatives house there in Thailand. We left when I was 8 months old and I haven't been back. I have a photo copy of my Thai/English birth certificate which shows my birth place as City Hospital in Nakhon Ratchasima. I once saw an original House Registration with my name for an Uncle's house in Thailand.

I would like to pursue the Thai citizenship. What is the ID card? What steps do I take to do this? I live in Florida, US. How can I gather information to do this from here? Websites? Online registries?

Any help would be greatly appreciated.

Thanks