Working for a Hong Kong company with no Thai company: Questions

[bkkandy1308]

Hello everyone,

 

I will be taking up employment with a Hong Kong-registered company that does not have a Thai company. I will be employed on the M-Visa due to the nature of the work which will be as a journalist.

 

My question relates to taxation. I am aware that I need to pay income tax when my salary is repatriated into Thailand, but because my HK company has no experience of employing non-Hong Kong residents solely for work overseas, they are unsure whether they also need to tax me in Hong Kong. I am unclear as to whether it would be best to have my salary paid into a HK account, or directly into my Thai account.

 

Is anyone else in the same situation?

 

Thanks in anticipation for any assistance and experiences.

 

Andy.

[Crossy]

I'm not an expert, and things may have changed since my experiences, I'm also not a journalist.

 

I would open an offshore account (mine is in USD with LLoyds International on the Isle of Man) and get your salary transferred there, then there can be no doubt as far as Thai tax is concerned. Income is taxable only if transferred in the year it's earned and I've never been asked anyway.

 

Also as non-resident in HK there's likely no tax due there either. In the past I've worked for a HK outfit whilst non-resident, tax forms duely filed and a demand for zero received.

 

It's always wise to be registered for income tax somewhere in case the authorities back home (UK for me) ever ask.

 

[ubonjoe]

I think you will liable for taxes here once you have your non-m visa issued. The Ministry of Foreign affairs will arrange everything.

There is info is on their website but it appears to be down at this time. See: http://www.mfa.go.th/main/en/

[Crossy]

27 minutes ago, ubonjoe said:

I think you will liable for taxes here once you have your non-m visa issued.

Yeah, I was wondering if things were different for journos.

 

Typical that the MFA site is down.

[bkkandy1308]

Thank you. I am pretty sure I would need to show some proof of paying income tax in Thailand when I come to renew my visa after the first year.

 

The issue, I think, is that because my employer has no business entity in Thailand I would need to be responsible for paying the tax myself.

 

Thanks again for your suggestions.

 

Andy.

[Time Traveller]

It's unusual that a legally "registered company" is telling it's employees (or contractors) that it has no clue about staying compliant with taxation laws in their own country. 

The first lesson I learnt working offshore is :DO NOT TAKE TAXATION ADVICE FROM YOUR EMPLOYER.

So if I were you, I would drop some major hints that your employer speak with an accountant or tax lawyer asap. Otherwise run for the hills because if they don't really care about abiding by the big laws, they probably are breaking other laws as well.  Besides that, if they get audited, likely they'll throw you to the sharks and the tax authorities might just come after you for a piece of the missing pie. (Thailand has some pretty high rates for income tax on salaries)

Edited September 23, 2018 by Time Traveller

[ubonjoe]

4 hours ago, bkkandy1308 said:

Thank you. I am pretty sure I would need to show some proof of paying income tax in Thailand when I come to renew my visa after the first year.

The process of getting the non-m visa, work permit and extension of stay is here. http://www.mfa.go.th/main/contents/images/text_editor/files/Guidanceforforeignpress.pdf

I see no mention of taxes being paid but It may be needed to apply or the work permit.