Employed by a Thai Company but living outside Thailand - what are the implications?

[stament]

This is I suspect an unusual case. What are the implications of living outside of Thailand, working remotely for a Thai company. 

 

1) Is it possible to have an employment contract or should a person be regarded as a consultant?   

2) If a consultant then I assume withholding tax would be deducted from any services provided?

3) Would the person be liable to pay tax to Thailand?

 

Thanks 

[Ralf001]

Being employed by a Thai company I would assume you would be liable to pay tax on the salary.... not sure how the Thai company would avoid this with the revenue department.

 

Interesting question.

Edited February 11 by Ralf001

[impulse]

I think the bigger concern for someone in the OP's position would be the advancements Thailand is making in sharing tax information with other countries.  Working outside of Thailand, he may be exempt from paying Thai taxes, but not from paying taxes where he is resident.  And, for some countries, where he holds citizenship.  Not much risk of showing up on radar in the past.  But the odds of getting caught out are increasing.

 

[Mike Lister]

If you are regarded as a consultant or contractor, you can specify how you will be paid and where, the issue will then be, the jurisdiction where the services were delivered and how. If for example, you are a UK citizen whose client is an onshore  Thai company  but you own an offshore company registered in say Samoa and your services are delivered in say the PI, the scenario will look like this:

 

You are not liable to Thai tax because no services are delivered in Thailand and you are not Thai, assuming also you own an offshore company.

 

The UK will not have any claim to tax, as long as you remain ex-UK for tax purposes for the tax year and your company is in offshore UK.

 

The PI may levy a tax obligation because you are delivering services in the PI.

 

Samoa is completely out of the loop.

 

An offshore umbrella company would relieve some of that stress and you could always claim to be a tourist in the PI, using the example above.

 

I did the same thing for many many years.

 

 

 

[impulse]

6 minutes ago, Mike Lister said:

...and you could always claim to be a tourist in the PI, using the example above.

 

I did the same thing for many many years.

 

I sense those days of tax dodging are coming to a close as reporting between countries becomes more sophisticated.

 

Edited February 11 by impulse

[stament]

Thanks everyone for the replies.  It's not a question to avoid paying tax, I wish to find out the correct treatment for tax purposes.

 

I just wondered if income tax should be deducted and paid in Thailand.  If it is not then I would expect the person to be treated for tax purposes within Thailand as a consultant and hence withholding taxes deducted.  I just find it a peculiar situation as a lot of people are doing the opposite, i.e. working in Thailand but employed by an overseas company.

 

[Mike Lister]

1 minute ago, stament said:

Thanks everyone for the replies.  It's not a question to avoid paying tax, I wish to find out the correct treatment for tax purposes.

 

I just wondered if income tax should be deducted and paid in Thailand.  If it is not then I would expect the person to be treated for tax purposes within Thailand as a consultant and hence withholding taxes deducted.  I just find it a peculiar situation as a lot of people are doing the opposite, i.e. working in Thailand but employed by an overseas company.

 

Where will you deliver the services from, inside Thailand?

[stament]

7 minutes ago, Mike Lister said:

Where will you deliver the services from, inside Thailand?

It's not me, but someone else.  Anyway, the person has been living in Nepal but being paid as an employee from a Thai company.  I don't think income tax can be paid in Thailand as I understand you need a visa, Thai address, etc for that. Which leads me to assume that no tax would have been paid, and the person should instead be subject to a withholding tax deduction from their salary.  All very complicated I know.

 

But, if they are treated as a consultant for tax purposes can they then still be an employee?