Entry Permit Renewals Vs. Minimum Salary

[Indo-Siam]

I'm posting this for general information, based on unhappiness experienced by several recent clients.

For anyone who will be renewing an extended Class B entry permit during the next 10 months, and who thought they slid in under the imposition of minimum required salaries, effective July 10, 2004 - and are still receiving a salary below the minimums:

Be advised that when you next attempt to renew your entry permit extension, if you have been receiving a salary lower than that required for your nationality, Immigration will require you to go back to Revenue Department, and pay all back personal income tax withholding on the difference between your received salary since July 10th, and what you should have been paying. And the Revenue Department will also add a small fine - I think generally less than 500 baht.

Given that most persons currently "flying under" the salary requirements tend to be on pretty tight budgets, an unexpected 10,000 baht charge might be quite an unpleasant surprise.

This is current policy for Bangkok. It applies only to persons with entry permits extended based upon qualifying employment.

Cheers!

Steve Sykes

Managing Director

Indo-Siam Group

Bangkok

[email protected]

www.thaistartup.com

[Baaksida]

Be advised that when you next attempt to renew your entry permit extension, if you have been receiving a salary lower than that required for your nationality, Immigration will require you to go back to Revenue Department, and pay all back personal income tax withholding on the difference between your received salary since July 10th, and what you should have been paying.

Does this regulation also apply for teachers (employed by government schools) and journalists?

[dr. kc]

and what are the minimum rates again...?!

[Baaksida]

and what are the minimum rates again...?!

From 10 July 2004, expatriates applying for non-immigrant visa extensions for employment in Thailand will have to meet an increased minimum monthly salary requirement, as listed below, by nationality and amount.

It should be noted that this regulation applies to employees in the corporate sector (profit-making businesses). Employees with lower monthly salaries in other professions, such as teachers, can apply for non-immigrant visa extensions and work permits for employment in Thailand provided that they are able to provide an official letter of confirmation from a relevant government agency.

The new minimum monthly wage rates, which vary according to nationality, will be:

• Japanese, Americans and Canadians: 60,000 baht (currently 40,000 baht).

• Europeans and Australians: 50,000 baht (35,000 baht).

• South Koreans, Taiwanese, Singaporeans and Hongkongers: 45,000 baht (35,000 baht).

• Malaysians: 45,000 baht (30,000 baht).

• Indians and people from the Middle East: 35,000 baht (30,000 baht).

• Mainland Chinese, Indonesians and Filipinos: 35,000 baht (25,000 baht).

• Burmese, Laotians, Vietnamese, Cambodians and Africans: 25,000 baht (20,000 baht).

• Journalists working for newspapers: 20,000 baht (12,000 baht). Wages of journalists working for magazines and other media are categorized by nationalities.

There you go.

But my question is, as a teacher (European) with a salary of 30,000 baht, do I have to pay tax on 30,000 or 50,000 baht??

[dr. kc]

I'd figure you'd come under

"Employees with lower monthly salaries in other professions, such as teachers, can apply for non-immigrant visa extensions and work permits for employment in Thailand provided that they are able to provide an official letter of confirmation from a relevant government agency."???

Much like myself!

[mouse]

Should they not go after the employer and force them to give a raise or dismiss the worker rather than going after the worker himself????????

[kenkannif]

Be advised that when you next attempt to renew your entry permit extension, if you have been receiving a salary lower than that required for your nationality, Immigration will require you to go back to Revenue Department, and pay all back personal income tax withholding on the difference between your received salary since July 10th, and what you should have been paying.

Does this regulation also apply for teachers (employed by government schools) and journalists?

No it doesn't apply to teachers and I think they've always said it won't apply to journalists!

[Baaksida]

No it doesn't apply to teachers and I think they've always said it won't apply to journalists!

So the Thailand taxman will not be knocking on my door on December 31, saying: "You (are a rich) farang, pay more tax, reow, reow..."

As for the low salaries, well, here at the English programme of my government school the parents fork out quite a lot of money per year to pay for their kids' tuition. I don't think, that they would pay 50% more to allow the farang teachers a decent income. (And the government, which should feel responsible for the good education of its country's students has only money for fancy projects or for the purpose of buying English soccer teams..."

[Foggy Bottom]

and what are the minimum rates again...?!

From 10 July 2004, expatriates applying for non-immigrant visa extensions for employment in Thailand will have to meet an increased minimum monthly salary requirement, as listed below, by nationality and amount.

It should be noted that this regulation applies to employees in the corporate sector (profit-making businesses). Employees with lower monthly salaries in other professions, such as teachers, can apply for non-immigrant visa extensions and work permits for employment in Thailand provided that they are able to provide an official letter of confirmation from a relevant government agency.

The new minimum monthly wage rates, which vary according to nationality, will be:

• Japanese, Americans and Canadians: 60,000 baht (currently 40,000 baht).

• Europeans and Australians: 50,000 baht (35,000 baht).

• South Koreans, Taiwanese, Singaporeans and Hongkongers: 45,000 baht (35,000 baht).

• Malaysians: 45,000 baht (30,000 baht).

• Indians and people from the Middle East: 35,000 baht (30,000 baht).

• Mainland Chinese, Indonesians and Filipinos: 35,000 baht (25,000 baht).

• Burmese, Laotians, Vietnamese, Cambodians and Africans: 25,000 baht (20,000 baht).

• Journalists working for newspapers: 20,000 baht (12,000 baht). Wages of journalists working for magazines and other media are categorized by nationalities.

There you go.

But my question is, as a teacher (European) with a salary of 30,000 baht, do I have to pay tax on 30,000 or 50,000 baht??

Your quote is from the ammended and self re-interpretted version put out by Phuket Immigration (I recognise their wording) and bears no relationship to the official wording of the new law.

For example the bits in red below are not within the new law as distributed to Immigration offices nationwide, and the bit in Blue has for some reason been omitted by Phuket.

In September 2003 (LAST year) Good Morning Chiangmai News Magazine scooped every other publication in the country with the breaking of this news and the first translation of it.

I took both original Thai wording and the translation to Chiangmai University and had several departments (English, Law, Business) cross check the translation (the original translator is head of English at a local college) and especially to check for innuendoes and hidden meanings within the Thai version.

They all agreed that the GMCM News translation was accurate and conveyed correct meaning and intent - it's still on their website at Good Morning Chiangmai News

It should be noted that this regulation applies to employees in the corporate sector (profit-making businesses). Employees with lower monthly salaries in other professions, such as teachers, can apply for non-immigrant visa extensions and work permits for employment in Thailand provided that they are able to provide an official letter of confirmation from a relevant government agency.

• Journalists & Correspondents working for newspapers: 20,000 baht (12,000 baht). Wages of journalists working for magazines and other media are categorized by nationalities.

Phuket's twisting of the law on journalists, tied to the completely shytey time I had with the One Stop Visa & Work Permit Centre earlier this year, tells me there's a word out from somewhere to start shafting foreign press (also consider how they've been treated in recent years re: arrests etc) - I believe this will only get worse in the run up to the general election (remember the clampdowns immediately before the BKK Governor election?), and am burning incense every day for the Democrats to oust Thaksin ..... but reckon even Big B may not be able to achieve that one.