Please Help With This Hypothetical Tax Situation

[Dancali]

I could use some help with figuring out a potential tax situation. Here are some relevant details.

1. An individual working for an America corporation with no official branch office in Thailand. Purchasing and exporting product from Thailand.

2. Living in Thailand more than 180 days in a tax year.

3. Paid salary of $50,000 from the American corporation straight into his American bank account.

4. Non-immigrant B visa.

Some relevant information from the Thai tax website http://www.rd.go.th/publish/6000.0.html . . .

For tax purposes, this person would be a "resident".

""Resident" means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. "

It would seem that he is liable to pay taxes, though not on the full value of his income.

"A resident of Thailand is liable to pay tax on . . . the portion of income from foreign sources that is brought into Thailand."

So if he were to only withdraw from the atm about $15,000 for the year in living expenses, that would be taxable and not the full $50,000? In total, he would be withdrawing much more than $15,000 but that would be to pay to purchase the product and ship it out.

I'm just trying to figure out the rather complicated ins and outs of the international tax situation for this individual.

Other questions:

What is the detal with the legal status of such work?

Is it ok for the American company to have this individual doing such work over here on a non-immigrant B visa? The consulate has no problem granting the visa.

Does the American company have to pay any taxes or complete any paperwork for its informal operations in Thailand?

How does one go about paying taxes if he thinks he is liable to pay? Do the tax people have anything to do with the immigration people? Will they simply take the yearly check and leave the individual alone?

Should he even bother with the taxes since it might be a grey area in the first place and it's best to leave authorities out of the picture?

Thanks for all your help.

[falong]

I could use some help with figuring out a potential tax situation. Here are some relevant details.

1. An individual working for an America corporation with no official branch office in Thailand. Purchasing and exporting product from Thailand.

2. Living in Thailand more than 180 days in a tax year.

3. Paid salary of $50,000 from the American corporation straight into his American bank account.

4. Non-immigrant B visa.

Some relevant information from the Thai tax website http://www.rd.go.th/publish/6000.0.html . . .

For tax purposes, this person would be a "resident".

""Resident" means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. "

It would seem that he is liable to pay taxes, though not on the full value of his income.

"A resident of Thailand is liable to pay tax on . . . the portion of income from foreign sources that is brought into Thailand."

So if he were to only withdraw from the atm about $15,000 for the year in living expenses, that would be taxable and not the full $50,000? In total, he would be withdrawing much more than $15,000 but that would be to pay to purchase the product and ship it out.

I'm just trying to figure out the rather complicated ins and outs of the international tax situation for this individual.

Other questions:

What is the detal with the legal status of such work?

Is it ok for the American company to have this individual doing such work over here on a non-immigrant B visa? The consulate has no problem granting the visa.

Does the American company have to pay any taxes or complete any paperwork for its informal operations in Thailand?

How does one go about paying taxes if he thinks he is liable to pay? Do the tax people have anything to do with the immigration people? Will they simply take the yearly check and leave the individual alone?

Should he even bother with the taxes since it might be a grey area in the first place and it's best to leave authorities out of the picture?

Thanks for all your help.

As far as I can remember you must pay us taxes on that 50K income. Forget about the thai taxes. You would not qualify for the US exemption unless you stayed out of US for 330 per tax year. But I am probably wrong.

[Butterfly]

You can't be taxed if you don't have a Work Permit in the first place. The greater danger is the Work Permit not the Tax