Taxes

[richguess]

Ok. Is it paying 50,000 Bt/yr in tax, or paying tax on a salary of 50,000 Bt/mo? I am an American, own a small business (1 month), and want to do everything legally. I was hoping to not make the visa run every 90 days. I'm here on a single entry B visa.

[Sunbelt Asia]

Ok. Is it paying 50,000 Bt/yr in tax, or paying tax on a salary of 50,000 Bt/mo? I am an American, own a small business (1 month), and want to do everything legally. I was hoping to not make the visa run every 90 days. I'm here on a single entry B visa.

Depends... When you say, you own the business is it... you own the majority shares with a Limited Company, Limited Partnership or you own it as a sole proprietor?

If you are looking to get the extension of stay based on business and its a Thai Limited Company or Partnership. The earliest you can get the extension of stay is in January 2008. One of the criteria for the extension of stay is paying tax on a 50K Baht monthly salary.

If you are a sole proprietor, you will never qualify for the extension of stay based on business. However you will need to have a work permit next year so you should either hire 4 Thais, have gross sales of 700,000 Baht in 2007 or pay tax of 50,000 Baht in 2007. The easiest criteria in 2007 would be 700K in sales.

www.sunbeltasiagroup.com

[lanny]

In making your decision on form of organization, you should also consider the effect it may have on your US income tax, etc.

If you set up a Thai limited company, for example, and pay yourself a salary from this company, you would probably qualify for the exclusion (up to $82,400 per year.) Salaries from foreign entities, paid in a foreign country, are not subject to the US self-employment, social security taxes.

On the other hand, if you try operating as a sole proprietor or as a partner with someone else, the $82,400 exclusion applies to your share of GROSS income of the business, not your share of the net. In addition, the net share is subject to the self-employment social security tax.

You need to balance the effect of paying Thai taxes against the cost of any US taxes.

[richguess]

Ok. Is it paying 50,000 Bt/yr in tax, or paying tax on a salary of 50,000 Bt/mo? I am an American, own a small business (1 month), and want to do everything legally. I was hoping to not make the visa run every 90 days. I'm here on a single entry B visa.

Depends... When you say, you own the business is it... you own the majority shares with a Limited Company, Limited Partnership or you own it as a sole proprietor?

If you are looking to get the extension of stay based on business and its a Thai Limited Company or Partnership. The earliest you can get the extension of stay is in January 2008. One of the criteria for the extension of stay is paying tax on a 50K Baht monthly salary.

If you are a sole proprietor, you will never qualify for the extension of stay based on business. However you will need to have a work permit next year so you should either hire 4 Thais, have gross sales of 700,000 Baht in 2007 or pay tax of 50,000 Baht in 2007. The easiest criteria in 2007 would be 700K in sales.

www.sunbeltasiagroup.com

Thanks for the help. It's a Limited Partnership company. So after I get my work permit (good until my visa expires on 7 May 07) I will need to extend my visa and work permit at the Immigration and revenue Office? I have heard they will only give me a few months extension at a time until they are sure I am paying my taxes.

[Sunbelt Asia]

Ok. Is it paying 50,000 Bt/yr in tax, or paying tax on a salary of 50,000 Bt/mo? I am an American, own a small business (1 month), and want to do everything legally. I was hoping to not make the visa run every 90 days. I'm here on a single entry B visa.

Depends... When you say, you own the business is it... you own the majority shares with a Limited Company, Limited Partnership or you own it as a sole proprietor?

If you are looking to get the extension of stay based on business and its a Thai Limited Company or Partnership. The earliest you can get the extension of stay is in January 2008. One of the criteria for the extension of stay is paying tax on a 50K Baht monthly salary.

If you are a sole proprietor, you will never qualify for the extension of stay based on business. However you will need to have a work permit next year so you should either hire 4 Thais, have gross sales of 700,000 Baht in 2007 or pay tax of 50,000 Baht in 2007. The easiest criteria in 2007 would be 700K in sales.

www.sunbeltasiagroup.com

Thanks for the help. It's a Limited Partnership company. So after I get my work permit (good until my visa expires on 7 May 07) I will need to extend my visa and work permit at the Immigration and revenue Office? I have heard they will only give me a few months extension at a time until they are sure I am paying my taxes.

Sorry but you will not be able to extend your visa based on business till Jan 2008 at the earliest.

Every three months you will be revalidating your work permit after you have gotten a fresh 90 days.

If you are married to a Thai, then this would be the solution by showing the PND #1 and getting a one year extension of stay based on marriage.

www.sunbeltasiagroup.com

[richguess]

Ok. Is it paying 50,000 Bt/yr in tax, or paying tax on a salary of 50,000 Bt/mo? I am an American, own a small business (1 month), and want to do everything legally. I was hoping to not make the visa run every 90 days. I'm here on a single entry B visa.

Depends... When you say, you own the business is it... you own the majority shares with a Limited Company, Limited Partnership or you own it as a sole proprietor?

If you are looking to get the extension of stay based on business and its a Thai Limited Company or Partnership. The earliest you can get the extension of stay is in January 2008. One of the criteria for the extension of stay is paying tax on a 50K Baht monthly salary.

If you are a sole proprietor, you will never qualify for the extension of stay based on business. However you will need to have a work permit next year so you should either hire 4 Thais, have gross sales of 700,000 Baht in 2007 or pay tax of 50,000 Baht in 2007. The easiest criteria in 2007 would be 700K in sales.

www.sunbeltasiagroup.com

Thanks for the help. It's a Limited Partnership company. So after I get my work permit (good until my visa expires on 7 May 07) I will need to extend my visa and work permit at the Immigration and revenue Office? I have heard they will only give me a few months extension at a time until they are sure I am paying my taxes.

Sorry but you will not be able to extend your visa based on business till Jan 2008 at the earliest.

Every three months you will be revalidating your work permit after you have gotten a fresh 90 days.

If you are married to a Thai, then this would be the solution by showing the PND #1 and getting a one year extension of stay based on marriage.

www.sunbeltasiagroup.com

So when my non B expires on 7 May and I am not married to a Thai what are my choices?

[Sunbelt Asia]

Ok. Is it paying 50,000 Bt/yr in tax, or paying tax on a salary of 50,000 Bt/mo? I am an American, own a small business (1 month), and want to do everything legally. I was hoping to not make the visa run every 90 days. I'm here on a single entry B visa.

Depends... When you say, you own the business is it... you own the majority shares with a Limited Company, Limited Partnership or you own it as a sole proprietor?

If you are looking to get the extension of stay based on business and its a Thai Limited Company or Partnership. The earliest you can get the extension of stay is in January 2008. One of the criteria for the extension of stay is paying tax on a 50K Baht monthly salary.

If you are a sole proprietor, you will never qualify for the extension of stay based on business. However you will need to have a work permit next year so you should either hire 4 Thais, have gross sales of 700,000 Baht in 2007 or pay tax of 50,000 Baht in 2007. The easiest criteria in 2007 would be 700K in sales.

www.sunbeltasiagroup.com

Thanks for the help. It's a Limited Partnership company. So after I get my work permit (good until my visa expires on 7 May 07) I will need to extend my visa and work permit at the Immigration and revenue Office? I have heard they will only give me a few months extension at a time until they are sure I am paying my taxes.

Sorry but you will not be able to extend your visa based on business till Jan 2008 at the earliest.

Every three months you will be revalidating your work permit after you have gotten a fresh 90 days.

If you are married to a Thai, then this would be the solution by showing the PND #1 and getting a one year extension of stay based on marriage.

www.sunbeltasiagroup.com

So when my non B expires on 7 May and I am not married to a Thai what are my choices?

Travel to a country that you can get a one year multi entry visa. The only one in the area would be KL Malaysia but that would be only 30% chance of getting a one year visa with a work permit. Worse case you'll get a 90 day non immigrant visa.

Your best bet is going to Australia, Europe or the USA with your work permit and getting a one year multi entry visa

www.sunbeltasiagroup.com