No Work Permit

[FirstJobThailand]

Last year I worked in Thailand but my work permit was not completed until the beginning of this year.

Taxes were withheld and now the company's HR department has filled out tax forms in order to submit for tax return.

Total Taxes withheld around 63,000 THB expected return (over payment) 4,000 THB.

The question I have is what should I do....

1. Should I file my taxes and ask for refund of 4,000 THB

2. Forget it and hope the don't notice I didn't have a work permit?

But whether I file or don't file does it really matter? If the taxes have already been withheld and paid to the government that means I should already have a tax ID number and be in their system, correct?

Do the two organizations communicate? At first my HR manager said, it shouldn't matter, because the labor department and the tax department don't talk to each other and even if they do it shouldn't matter because I now have a work permit (even if I didn't then).

I have seen posts by people who have advised that they have filed taxes without a work permit, but not sure if it has ever caused any problems.

Has anyone ever paid taxes without a work permit?

[PattayaParent]

Are you sure your company has paid the taxes to the Revenue Department?

After all you don't have a WP so you can't have a tax ID number (if it's your first job here) so the money is likely sitting in someone's pocket.

[FirstJobThailand]

Are you sure your company has paid the taxes to the Revenue Department?

After all you don't have a WP so you can't have a tax ID number (if it's your first job here) so the money is likely sitting in someone's pocket.

Not sure, but should be easy enough to find out. If I do have a tax ID number, what then?

[Soutpeel]

Last year I worked in Thailand but my work permit was not completed until the beginning of this year.

Taxes were withheld and now the company's HR department has filled out tax forms in order to submit for tax return.

Total Taxes withheld around 63,000 THB expected return (over payment) 4,000 THB.

The question I have is what should I do....

1. Should I file my taxes and ask for refund of 4,000 THB

2. Forget it and hope the don't notice I didn't have a work permit?

But whether I file or don't file does it really matter? If the taxes have already been withheld and paid to the government that means I should already have a tax ID number and be in their system, correct?

Do the two organizations communicate? At first my HR manager said, it shouldn't matter, because the labor department and the tax department don't talk to each other and even if they do it shouldn't matter because I now have a work permit (even if I didn't then).

I have seen posts by people who have advised that they have filed taxes without a work permit, but not sure if it has ever caused any problems.

Has anyone ever paid taxes without a work permit?

My advice....forget about it, put the 4k down to a loss, my reaction would be how can your company pay tax for you without a tax number...no WP...No tax number

[george]

You can have a Thai Tax ID without a work permit.

[FirstJobThailand]

You can have a Thai Tax ID without a work permit.

Do you know if it raises any "Red Flags" if you do have a Tax ID, but no Work permit?

Do tax and labour ministries "compare notes"?

What about for visa extension? If I file taxes and show my tax receipts for the previous year and current work permit will this be ok, or will they ask me why my work permit just started?

[PattayaParent]

You can have a Thai Tax ID without a work permit.

Under what circumstances please?

[samran]

If you qualify for the refund, then you'll be asked for your work permit as proof (if they decide to audit).

The thing is, if you have a valid work permit, then I'd say go for it, even if didn't exactly overlap with the first month(s) of your contract. They just need to veiw it - and then, only usually by fax.

[Time Traveller]

If you qualify for the refund, then you'll be asked for your work permit as proof (if they decide to audit).

The thing is, if you have a valid work permit, then I'd say go for it, even if didn't exactly overlap with the first month(s) of your contract. They just need to veiw it - and then, only usually by fax.

Really? In the last 5 yrs, I've never been asked been asked by revenue department to show work permit. Only they want to see the annual withholding tax form that the employer should give you and any other documents that show income and tax withheld. Eg. Dividend withholding tax forms, Withholding tax on rental incomes etc. And maybe a copy of passport.

Also you don't need a work permit for a tax id card, and you can lodge tax return without work permit. But as samran says if you get asked then you'll need to show documentary proof of income/tax paid, and if that is income from working then there is a chance they might want to see your work permit.

My advice would be to file the tax form normally and hope for the refund. However, if what you say is correct and you haven't been a tax resident in the last financial year (i.e. been in Thailand more than 180 days) than I'm not sure if the revenue dept. would accept the tax refund claim.

[thaitero]

You can have a Thai Tax ID without a work permit.

Under what circumstances please?

My quess is that if you spend over 180 days /year in Thailand you will be then "taxresident" of thailand and you should pay a tax on outside monies brought into Thailand..No need for workpermit if you are longstay tourist, retired etc but you need Thai Tax ID to pay tax

[minimart]

When I left my job in the January of that year I handed my work permit in. I filed my tax returns that year in March the same as when I was working and received a tax refund cheque in about July or August if my memory serves me correctly.

[beano2274]

I work Part Time at a well known University in Thailand, the tax is withheld and sent to the tax office. I recently, with the help of my Thai wife, got a rebate of more than 75% of my tax paid. I do not have a work permit, but have a Tax Number, a Thai Driving License and a Yellow book

Edited March 29, 2009 by beano2274

[MJo]

Normal practise, as you know you can not get work permit on same day when you apply. So in practise you work while your WP is processed and should pay tax for this period as well. If i remember correctly the WP is even backdated to the date you entered the country with non B or was that one the annual extension? Not sure.

So as long your company applied your WP upon you starting work you should not have anything to worry about.

[PattayaParent]

You can have a Thai Tax ID without a work permit.

Under what circumstances please?

My quess is that if you spend over 180 days /year in Thailand you will be then "taxresident" of thailand and you should pay a tax on outside monies brought into Thailand..No need for workpermit if you are longstay tourist, retired etc but you need Thai Tax ID to pay tax

Quite possibly thaitero, but I don't know anyone who has actually volunteered to pay tax in this way.

[Time Traveller]

You can have a Thai Tax ID without a work permit.

Under what circumstances please?

My quess is that if you spend over 180 days /year in Thailand you will be then "taxresident" of thailand and you should pay a tax on outside monies brought into Thailand..No need for workpermit if you are longstay tourist, retired etc but you need Thai Tax ID to pay tax

Quite possibly thaitero, but I don't know anyone who has actually volunteered to pay tax in this way.

No, but if you're entitled to foreign tax credits (or Thai for that matter) and your assessable income is low enough for you to be entitled to a refund, then you would do it. Thailand does have dual tax treaty with many countries.

It's not volunteering to pay extra tax at all.

[sleepyjohn]

I recently, with the help of my Thai wife, got a rebate of more than 75% of my tax paid.

Does she have a sister?