New Work Permit Rule (?)

[kerr17]

Hi all,

I have a company which was setup on October 2006, i never used it since i decide to setup my own business this year.

Now the problem is that I'm trying to get a work permit out of it but i was told that i need to make a balance sheet for 2007 first proving an income that can allow me to make a work permit (about 700k).

My accounter told me that in order to do that and after i justify expenses i would still need to pay about 30-40k bath of taxes for last year and that would mean that this work permit is going to cost me a lot.

However a friend of mine in the same situation manage to get one withouht paying those taxes, does anyone knows which is the right procedures?

Should i just change accounter?

Thanks to all

Edited January 27, 2008 by kerr17

[LivinginKata]

If your company is not trading then why would you pay any company taxes if you did not make any profit ?? For sure you will need to process certified accounts & audit for 2007 by end of May 2008, and 2006 which is now way overdue and subject to fine, and maybe that's the cost you accountant is taking about, fees and fines.

It's my opinion your company only needs to certify that you will be paid at least 30,000 baht/month to qualify for a WP. Nothing to do with company turnover or profit/loss.

[kerr17]

If your company is not trading then why would you pay any company taxes if you did not make any profit ?? For sure you will need to process certified accounts & audit for 2007 by end of May 2008, and 2006 which is now way overdue and subject to fine, and maybe that's the cost you accountant is taking about, fees and fines.

It's my opinion your company only needs to certify that you will be paid at least 30,000 baht/month to qualify for a WP. Nothing to do with company turnover or profit/loss.

I was told that if you cannot prove your company had an income that can justify a work permit (40-50k per month) the previous year, i cannot get a work permit (some kind of new law).

Can anyone confirm this is true?

[THAIJAMES]

If your company is not trading then why would you pay any company taxes if you did not make any profit ?? For sure you will need to process certified accounts & audit for 2007 by end of May 2008, and 2006 which is now way overdue and subject to fine, and maybe that's the cost you accountant is taking about, fees and fines.

It's my opinion your company only needs to certify that you will be paid at least 30,000 baht/month to qualify for a WP. Nothing to do with company turnover or profit/loss.

I was told that if you cannot prove your company had an income that can justify a work permit (40-50k per month) the previous year, i cannot get a work permit (some kind of new law).

Can anyone confirm this is true?

Yes it is true. My application for an extension was rejected last year on the grounds that my company did not make enough money the previous year to cover my mandatory 60k salary (which as a US citizen can now be reduced to 50k).

I think it is best to show that your company is making a profit.

If you are rejected, they want you to leave the country, get a new non-b visa and apply for an extension inside the country when your company can show a profit for the previous year.

I was able to get a temporary extension by having a high ranking government official certify me (I do work for the Thai government)

The funny thing is that to solve the problem I am now applying for Thai permenant residency (Which gave me a futher 6 months extention)

[LivinginKata]

I was told that if you cannot prove your company had an income that can justify a work permit (40-50k per month) the previous year, i cannot get a work permit (some kind of new law).

That does seem a logical rule. I wonder how new trading companies get round that ??

I've had my work permit for 6 years, and when I first applied for my WP back then, our company had not been trading the previous year. I got the WP, but I would not be surprised if can't do it nowadays.

BTW, I've always wondered why folks talk about higher salary levels than 30,000 baht. Each time I apply for my WP extension, all the Labour Office ask me to prove is a monthly tax paid level of 1,500 baht = 18,000 baht/year. Only need an income of 30,000 baht/month to pay that level of income tax. I'm a UK national, and I've heard that some other nationalities require a higher income level. Anyone with experience care to confirm that ??

Edited January 28, 2008 by LivinginKata

[dotroy]

I was told that if you cannot prove your company had an income that can justify a work permit (40-50k per month) the previous year, i cannot get a work permit (some kind of new law).

That does seem a logical rule. I wonder how new trading companies get round that ??

I've had my work permit for 6 years, and when I first applied for my WP back then, our company had not been trading the previous year. I got the WP, but I would not be surprised if can't do it nowadays.

BTW, I've always wondered why folks talk about higher salary levels than 30,000 baht. Each time I apply for my WP extension, all the Labour Office ask me to prove is a monthly tax paid level of 1,500 baht = 18,000 baht/year. Only need an income of 30,000 baht/month to pay that level of income tax. I'm a UK national, and I've heard that some other nationalities require a higher income level. Anyone with experience care to confirm that ??

I had a work permit issue and finally I contracted a local lawyer and she took care of it. I don't remember how much I paid but it was very nominal. She still does all the work for me. I guess they have a website but don't remember the URL. Just do a google search on "thai legal plus" and email them or call.

Wish you all the best ..

[Maestro]

...I have a company which was setup on October 2006, i never used it since i decide to setup my own business this year.

Now the problem is that I'm trying to get a work permit out of it...

...My application for an extension was rejected last year on the grounds that my company did not make enough money the previous year to cover my mandatory 60k salary (which as a US citizen can now be reduced to 50k)...

I don’t know the details but the requirements for an application for work permit are different from those for an application for extension of stay.

For the work permit, I believe there has to be a certain number of Thai employees per foreigner’s work permit and a certain minimum registered capital, whereas for the extension of stay there must be a certain minimum salary and the last fiscal year’s revenue must be not less than the applicant’s annual salary.

--

Maestro

[monty]

Not 100% sure now, but the requirements for a work permit are quite relaxed. You have to state a monthly salary on the application, in-line with your job position.

Your company needs to have a minimum capitalization of 2 million Baht.

Normally, employees are not required, but depending which labour office, they might be needed.

You will however need to supply them with pictures of your place of work, office, entrance with the name of your company clearly visible etc...

The hardest part is using the work permit to get an extension of stay.

Your WP will initially be valid until the same day you are allowed to stay in Thailand.

You can then do a border run (if multiple entry visa) or take a trip abroad and apply for a new non immigrant visa (should be no problem when showing your WP).

On re-entering go to labour department to extend the validity of your WP to match your new entry stamp.

To be able to get an extension of stay based on employment, the company you're working for needs to have at least 4 Thai employees, and needed to make at least enough money in the previous year to cover the entire salary for the WP holder for next year.

So in case of a European WP holder, whose salary needs to be at least 60,000 Baht/month, the company need to have made at least 720,000 Baht in the previous year!

Additionally you'll need to furnish immigration with pictures of the employees at their place of work, and spot checks WILL be done to ensure those employees are actually working there!

So with a company without proper financial history, you'll have to get yourself a new non immigrant visa every 3 months and re-synchronize your WP every time with the new entry stamps... (alternatively, go to your home country and apply for a multiple entry, should be approved, then you'll only have to do boder runs)

[Loaded]

just renewing my company wp. Went to immi and they rejected the application for extention because our company only shows equity of 200K. It's capitalization is 4 m. They told me bring the equity upto 1 m or no extention. They allowed me to photocopy the English translation of this rule. Anyone come across this before?

[dotroy]

just renewing my company wp. Went to immi and they rejected the application for extention because our company only shows equity of 200K. It's capitalization is 4 m. They told me bring the equity upto 1 m or no extention. They allowed me to photocopy the English translation of this rule. Anyone come across this before?

Just pay the tax on the money the company is supposed to make and pay all employees tax and you should be ok.

Since you opened up your own company, so you should have a Lawyer who takes care of these details and files tax accordingly.

So far I only pay 2000 Baht per month for accounting and just the taxes. My lawyer does one year for 6000 Baht and one year work permit for 6000 Baht ....so I don't have to deal with all these things anymore.

Wish you all the best !