TravelerEastWest

the Thai tax rules on foreign income (often called the remittance basis ) are not particularly unusual. Many countries (eg the UK for non-doms) apply a similar distinction between funds brought into country as current year earnings and funds brought in as capital.The bottom line is that, from what you have said , you have no reporting or taxation obligation (other than your Thai income) ,relax!

As above - relax - you are worrying too much.*

The odds of you being audited are small. Showing that the money came into your savings account combined with a very simply form of first in first out accounting will show that the money is not from the current year and non taxable.

As an example in year 1 through 5 you had $10,000 income 5 x $10,000 = $50,000 less say $25,000 living expenses tax etc. So in Year 6 off you go to Thailand with $25,000 in the savings account all with taxes paid for a prior year.

In year 6 you with draw funds and have funds added net of tax. as long as you take out less than $25,000 you are fine. And so on in future years...

* However, worrying is not easy to stop doing - if you do not need the money why not volunteer? Ask the government agency to take care of the paperwork. For a volunteer I am sure they can make it happen - this is Thailand....

Reentry Permit Update

Yesterday I got a reentry permit at Chaengwattana and asked about the current status at the airport:

I was told that you need to fill out the normal form and you can do it on weekends and holidays at the airport when the immigration office is closed.

I am not sure if the above is 100% corrrect but that is what I was told.

UPS is easy to work with just call their sales department and tell them how much you will ship and they will setup an import account for you with a discount from the published rates.

They will provide you with a chart showing countries, types of shipping and weights which will tell you the exact prices - very easy.

Probably the same for Fed Ex etc.

Simply call if emails are not getting a response.

Cheers,

UPS Head office is less than 1km away so I'll go there personally.

Going there in person is a good idea because although the staff in theory speak English they are not fluent.....

The more you estimate that you will ship teh better the rate will be.

The Thai taxmen will let you run a loss for a period of time (maybe a few years while you are establishing your business) and if you are still in business after this time but not showing a profit, they will assume you are doing dodgy books and arbitrarily tax your business in line with industry averages regardless of your declared income/profit.

Moral of the story, don't mess with the Thai tax auditors.

You are right when it comes to the overall profitability of the company. But if you buy something at a certain price and sell it at a lower price, the tax office would stop you from doing so at first attempt as it is impossible to become profitable doing a business that way.

The minimum accepted mark-up that I have been advised is 3%.

Raro,

I would be very surprised if you are correct - as an example what if you buy something seasonal at a certain price and want to sell it next year? Or if you buy something and its value has become lower since you purchased it, or if you are offering a lower price to a new customer - the possibilities are endless.

The poster needs a good CPA, if he can afford it one with a specialization in taxation.

With a good accountant you can even go far beyond a few years of losses.

UPS is easy to work with just call their sales department and tell them how much you will ship and they will setup an import account for you with a discount from the published rates.

They will provide you with a chart showing countries, types of shipping and weights which will tell you the exact prices - very easy.

Probably the same for Fed Ex etc.

Simply call if emails are not getting a response.

The guy I spoke to at a faily reputable lawyers office today suggested that I could not operate at a loss. And that I could not sell something without showing some profit and paying some tax on profits. Something about transfer pricing.

I am wondering whether a Thai business is really what I need. Perhaps I could just pay some Thai people from the UK co. (by oDesk for example) to carry out the buying and packing and shipping of the goods to the UK company via Fedex for example. Anyone any thoughts on that? Thanks

Your lawyer is correct about transfer pricing - the concept is simple and in your case you are not supposed to sell to related parties at a loss. Typically transfer pricing issues are done by CPA accounting firms not law firms.

As for not showing a profit he probably is wrong again you need a good accountant - think promotional sales or sales to new clients which could have a valid reason for no profits. There are other possibilities. Again you need a good CPA not a lawyer

For those of us with export businesses it's been tough - every year for the last 3 or 4 years there have been major obstacles thrown up. Be it Red shirts,Yellow shirts the rise and rise of the Thai Baht,World recession and now this.

To all those in similar positions to us it's good to remember that if you've got this far then this is just another issue to deal with, another obstacle thrown in the way,another stick wacked through the spokes of our wheels just as we had got back on the bike and started to ride again.

Keep resilient,innovative and profitable,downsize or whatever it takes.Hats off to ALL business owners (not just exporters) and remember that the personal qualities that enabled you to choose the route without the safety net will see you through.

Your words have cheered me up - thank you.

I recently visited the main customs office for an unrelated matter and asked a friendly officer for advice.

His reply was to apply for an advance ruling on your imported raw materials which would then make things easier when you export.

Sounded like lots of paperwork so I did not take notes.

He was probably referring to the 19 biz scheme. It is a lot of paperwork and some strings atttached to (factory license etc...) but saves the import duties in the end!

So in the end it is possible to get back VAT and duty but the paperwork must be correct which can be time consuming and expensive.

As an example using a courier the additional costs over the post office can cost more than the savings. Even using teh one post office in Bangkok that is said to provide proper documentation is more expensive than the savings unless you are perhaps located right next to that post office?

Your friend is better investing his money in Australia and coming over here he will get a higher retirn with more safety. If he comes here and goes into a venture like that he is putting his entire futre at risk as his payout must cover all medical and maintainance costs for life.

TO come and stay here is one thing...to throw away his fiture is another.

The numbers look like the guest house is not likely to ever make a good profit unless the bar is popular - move on to something else.

At Chaeng Wattana I have had no problem mailing the form in 2 weeks early they simply hold it until the correct date.

It is less paperwork to do in person and you know it has been done. Mailing can be more trouble than a quick trip to Immigration; where you can also do your banking in comfort at branches that provide service (other business).

EMS is quite safe in Thailand and you only need typically to make photocopies once to do it by mail they politely return your copies. So if it takes 10 minutes to make your first set of copies and address and stamp envelopes you are set for the year. Although if you go at the wrong time of the day you may have to wait 10 minutes in line at the post office.

So I think that saying that mailing can be more trouble than a trip to immigration is typically not correct at least in Bangkok. I suppose if you happen to pass by immigration often and parking is available etc it could be in theory easier.

But for me it is close to an hour with no traffic to get to immigration....

Stick with Premier. The alternative is even worse.

Exactly - but it is all location, location, location....

I am in the same situation and I use the Thai line without a problem.

The full address has to include the 90 days reference.

This is the address I've been using since they moved:

90 Days Report Section

Immigration Bureau (IMM. DIV.1)

Chalermprakiat Government Complex

120 Moo 3, Chaengwattana Rd. Soi 7,

Tungsonghong, Laksi,

Bangkok 10210

I just looked at the return address from my last mail-in in a month ago and it is exactly the same as the above address.

Why would anyone do the report in person if their local office allowed mail-ins unless you ahd other business there....

When I first moved to Bangkok they said that you have to do it in person but the website as I recall did not say that so I mailed it in (EMS) without a problem

Khor Dor 2 was always a rquirement but not always asked for.

also the document can't be older then one year. ( but again only if they ask for it )

If it was a requirement it would have had to be asked for - it was not. Only recently has it started to be asked for. In fact people were not provided KR2 upon marriage until the last decade or so.

Exactly - we were not given a Khor Dor 2 when married arround 10 years ago and I had never even heard of it until last week when immigration in Bangkok asked for it for the first time.

Any idea why it can't be older than a year? As the document will be exactly the same except for the stamp date. I will probably take a chance next year and bring in an original from this year.

If they ask for a new one I will then get one and scan it in via email.

The Kor 2 is a new requirement.

Do we need a new one every year?

I can't see why - all they do at the district office where we got married is photocopy the page where our marriage is registered

and stamp it.

Actually they gave us the entire book (with hundreds of original registrations) and we walked outside to a shop and copied our page, then they stamped it.

Last Monday I went to extend my non O with my wife in Bangkok at Changwattana.

They asked for a copy of my house lease which I don't think I have been asked for before.

They asked for a Kor 2 document which I am certain that they never asked for in the past.

The good news is that the supervisor accepts scanned copies so all is well - No extra trip...

I used a bank letter to confirm my letter that was issued on a Sunday evening at SCB for a Monday morning Immigration visit strangely they sent me downstairs to deposit 100 baht. Also something new at least for me.

For children under the age of 15 no overstay is charged and it is not considered a big deal.

What you need to do in this situation is that your daughter must leave Thailand on the passport she entered Thailand on. (She will get a small stamp in her passport showing she was on overstay, that is all).

When she returns to Thailand she needs to enter on her Thai passport and everything is as it should be.

Moved to visa section for Thailand.

As Mario says, from experience a couple of montha ago no worries...

I recently visited the main customs office for an unrelated matter and asked a friendly officer for advice.

His reply was to apply for an advance ruling on your imported raw materials which would then make things easier when you export.

Sounded like lots of paperwork so I did not take notes.

Meanwhile VAT on export is not a big concern for us but VAT paid on import of raw materials is as is duty.

A number of options exist such as keeping good records and the filing for a duty drawback and VAt refund upon export if you have good records.

The problem that other posters have along with ourselves is that the cure is worse than the bite.

We could probably get back all our VAT and Duty but the record keeping costs would exceed what we would receive.

Most Offices want the KR2.

Ask at the office you deal with.

In Bangkok is this KR2 now required?

In past years I was not asked for it and may be difficult to get as I was married 10 years ago and I have never heard of the form until now.

Location, location & location.

True with real estate and Tahi internet connections...

I have used True with poor results then 3BB with great results in the same area.

No doubt True is better in other locations.

If I am busy can I have a Thai staff person pick it up for me?

How is your new business doing?

I am curious as I sent you a message wishing you good luck and asking a question with no reply...

Wishing you good luck again.

A further update after roughly 6 weeks no problems and I am happy with the service.

One strange problem - my Vonage phone works fine overseas but has some problems with calling phones in Thailand.