Work Permit Renewal Refused

[genggwaa]

I have a start-up company, now two year's old. Like most start-ups, I invested my own capital on development costs. But it turns out that I need to show sufficient income (or is profit?) to be able to pay myself and my Thai staff one whole year in advance.

Otherwise my request for a visa renewal (/work permit) is refused. My recent application was rejected on these grounds.

Using minimum salary guidelines (50,000/foreigner, 5,600/staff per month) this effectively means just under 1 million baht for each foreigner.

Does anyone have any idea about what I can do now? I suppose it hardly matters that I (my company) developed methods to teach Thai to foreigners, or improve English communication for Thais, or even to improve management skills in Thai companies.

Maybe if my company was 3-4 years in business then I could understand this requirement, but as a start-up I didn't expect to make any money in the first year and expect only to break sometime in year 3.

How many other small (expat) businesses are affected by these new regulations and what happens to these businesses and the people (including the 4 Thai staff per foreigner)?

[lopburi3]

What work permit requires 50k income? That sounds like an extension of stay requirement. Are you sure you can not obtain a work permit?

If you are talking about immigration it is about extensions of stay - not visas or work permits.

I believe under new guidelines many are unable to obtain one year extensions of stay but still able to work and obtain non immigrant visas from Consulates.

[Maestro]

I understand that for an annual extension of stay for work your employer has to show in his accounts for the last fiscal year

– either gross revenue

– or net profit

equivalent to not less than the foreign employees’ salaries, depending on the immigration office where application for extension is made.

So far, I have never heard about the respective amount of cash in the bank at the time of application for extension. It would appear to be something new in your case.

--

Maestro

[genggwaa]

Sorry I wasn't clear.

Yes, it is regarding the extension of stay (without which of course I can't have my work permit renewed). My company's accounts does not show sufficient revenue (or profit) to account for salaries for a foreign employee plus the requisite 4 Thai staff per employee.

In plain figures, adding in the tax on salaries and social security charges, this means 1 million baht. I understand that the minimum acceptable salary for a foreigner (or is it foreign director?) is 50,000 baht per month.

["cash in bank" is perhaps an unfortunate expression for having the money to hand; I don't know whether it is a new requirement to have the money in liquid form or not]

[lopburi3]

Not sure why you can not renew your work permit if you have a valid visa - should not require an extension of stay - many people never have extensions of stay but work here with a work permit.

[Sunbelt Asia]

I have a start-up company, now two year's old. Like most start-ups, I invested my own capital on development costs. But it turns out that I need to show sufficient income (or is profit?) to be able to pay myself and my Thai staff one whole year in advance.

Otherwise my request for a visa renewal (/work permit) is refused. My recent application was rejected on these grounds.

Using minimum salary guidelines (50,000/foreigner, 5,600/staff per month) this effectively means just under 1 million baht for each foreigner.

Does anyone have any idea about what I can do now? I suppose it hardly matters that I (my company) developed methods to teach Thai to foreigners, or improve English communication for Thais, or even to improve management skills in Thai companies.

Maybe if my company was 3-4 years in business then I could understand this requirement, but as a start-up I didn't expect to make any money in the first year and expect only to break sometime in year 3.

How many other small (expat) businesses are affected by these new regulations and what happens to these businesses and the people (including the 4 Thai staff per foreigner)?

Simply get a multi entry visa at a Consulate/ Embassy and then revalidate your work permit every 90 days when you cross the border and get a fresh 90 days to stay in Thailand. Your work permit will then be stamped for another 90 days.

www.sunbeltasiagroup.com