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Dual Employee Contracts for NGOs


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Is it normal for NGO employees to have two separate contracts of employment with different salaries. One with a lower value for visa and immigration purposes, and a higher one which the NGO pays the employee and taxes on.

 

Has anyone ever heard of this before and if so, why do they do it? I can't understand why. Is there a maximum salary permissable for NGO staff under their visa?

 

 

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No, but if it was for financial gain maybe understandable, but I cannot think of a reason why, which is why I find it a weird situation as taxes are being paid, so what would be the motive for dual contracts? Seems odd, something is fishy....I just cannot figure out what....

Edited by stament
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10 hours ago, stament said:

Is it normal for NGO employees to have two separate contracts of employment with different salaries. One with a lower value for visa and immigration purposes, and a higher one which the NGO pays the employee and taxes on.

 

Has anyone ever heard of this before and if so, why do they do it? I can't understand why. Is there a maximum salary permissable for NGO staff under their visa?

 

 

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Edited by mokwit
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The only thing I can think of is that the person doing the documents you need from the NGO for immigration should be prevented from knowing your real salary. 

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1 hour ago, Maestro said:

The only thing I can think of is that the person doing the documents you need from the NGO for immigration should be prevented from knowing your real salary. 

In this case the person knows both contracts and salaries. I thought it must be something to do with the visa type perhaps? But there cannot be a limit on salaries can there as UN employees earn a lot and this is a small NGO. I just find it very, very odd. I cannot see any reason for it which makes me wonder, why lie to immigration. 

 

I am guessing if Immigration found out the consequences could be quite drastic right @Maestro

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20 minutes ago, Rhys said:

Creative NGO record keeping?  

Yes, but why?  The higher costs are paid out and recorded, and taxes are paid on the higher contract.  Seems like they are scared to tell immigration about their true earnings, but I don't know why.

 

Any idea what the consequences would be if immigration found out?

Edited by stament
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3 hours ago, stament said:

why lie to immigration.

Is it a lie or is it omission?

tax liability. think about it. if you are taxed only on income in Thailand or income you bring into Thailand, limiting that exposure makes a certain amount of sense. 

I have know of many expats that have dual salary agreements, say paid to hong kong and a smaller portion paid in Thailand to cover living expenses.    

Edited by n00dle
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1 minute ago, stament said:

but taxes are paid on the higher salary so this isn't the reason.  Maybe just plain dumbness?

I missed that part. The only reason I can think of is to keep funds offshore. NGO folks tend to repatriate or change countries often keeping money in their country of origin saves issues of moving funds out of Thailand when they move on in a couple of years. 

Edited by n00dle
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Thanks for all the replies.. Doesn't seem to be a clear reason so moving on....

 

What would be the consequences of carrying out such actions? I am guessing these are serious offences, I mean Inca not think of much worse than lying to immigration.

 

Guessing we are talking severe fines, possible imprisonment and of course bans from Thailand right?

 

 

 

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12 hours ago, stament said:

 

 

What would be the consequences of carrying out such actions? I am guessing these are serious offences, I mean Inca not think of much worse than lying to immigration.

 

Guessing we are talking severe fines, possible imprisonment and of course bans from Thailand right?

 

 

 


What makes you think they are lying to immigration?  You have already suggested they are legally taxed on the bulk of the income. Dual contracts are very commonplace in the expat community.  What do you imagine the heinous crime here is? Then of course there is the fact that immigration has absolutely nothing to do with taxation. 

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1 hour ago, n00dle said:


What makes you think they are lying to immigration?  You have already suggested they are legally taxed on the bulk of the income. Dual contracts are very commonplace in the expat community.  What do you imagine the heinous crime here is? Then of course there is the fact that immigration has absolutely nothing to do with taxation. 

I know they are lying, I got told that they submit the lower value and then in their regular interviews with immigration they are asked how they can live on the lower amounts. Yes immigration and tax departments aren't linked like a lot of departments in TH.  The whole thing just doesn't make sense. I am sure immigration wouldn't care if they earned more which is why it has me flummoxed.

 

Edited by stament
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