Checks On Foreign Business Tieups In Phuket

[AndyFarang]

Thailand - the new Hub of Crackdowns...??

[christcourt]

"Crackdowns" on "Crackdowns" same <deleted> different month!!!!!!!!!!! Boy they are making it hard for Westerners and easier for the "Ckinks"

I think I get the message hope everyone else does and there'll be more to come for sure.

[sparklerdynamo]

Checks on foreign business tieups in Phuket

PHUKET: -- A fact-finding effort is underway in Phuket to compile information about local businesses in which Thai people are hired by foreigners as their nominees - a practice considered suspicious and possibly illegal.

Provincial governor Wichai Phrai-sa-ngob, who ordered the investigation, said he was not discriminating against foreign investors, but guarding against illegal nomination which exploited loopholes in Thai laws for personal gain.

Under the business nomination law, foreigners can hold no more than 49-per-cent ownership of any business they jointly invest in with Thais. An ongoing practice is that foreigners later gain control over Thais illegally, and enjoy a lower tax burden than when holding a minority ownership.

To scrutinise foreign businesses, the local revenue office is checking on their tax payments, while the treasury office is scrutinising ownership of condominium space. Immigration police are checking visa and residence status.

Local authorities and the Interior Ministry will look into all information and decide on what to do if the fact-finding reveals illegal business nomination activities, said the governor.

There are now 19,653 joint Thai-foreign businesses in Phuket, which have invested around Bt62 million.

Patong Municipality mayor Chairat Sukbhal dismissed reports most hotels on the island resort were owned by foreigners, saying most were operated as joint ventures, or under management staffed by foreign executives.

The provincial business and trade office said a regulation requiring joint Thai-foreign businesses to produce bank accounts with a high minimum amount of money deposited had been revoked, because it could not effectively serve as proof of substantial business funding.

"In most cases, the money was withdrawn immediately from bank accounts once they were offered to Thai authorities as proof," office head Weerachai Tantiwatthanawallop said.

The provincial land office said legal action would be taken against any businesses found to have been operated illegally with a majority of foreign ownership, because Thai land laws imposed strict sanctions on foreigners owning land plots in Thailand.

-- The Nation 2009-09-02

[SweatySock]

Isn't it about time we had a "Crack Up" instead of another "Crackdown" ???????

[PattayaParent]

Why check 'ownership of condominium space'?

Surely ownership of land in company names would be a more obvious target?

[barry]

and here i was all set to start my new business there

an outreach program for over privileged thai teens

[lowbo]

I have said it before, and will say it again! The wording is................"Crackdown on Foreign business" not "Crackdown on Falang business" .

And................................Oh dear !!! not another "Crackdown".

Its about time this government did something real for the country and its underprivilaged population and stopped strutting about like the cockbird in the chicken pen.

These incessant "Crackdowns" are utterly stupid, designed to convince the population that they are being looked after, when its really those in power who are being looked after.

You are right.

It's the classic effort to divert public attention from the other homemade ills in this country that are ignored year-in and year-out. The poor infrastructure, education and other problems are constantly ignored so that the fat cats can stay rich and the poor, well you get the picture.

DITTO! .... the hand is quicker than the eye... now you see it, now you don't. It'll pass in about a month when the next "crackdown" on foriegners begins.

[Mobi]

Well rightly or wrongly, (and many say I over reacted), when this problem first started to gain momentum some 3 years ago, I transferred my house from my Thai company to my wife, and I have a lifetime ufustruct which allows me full residence rights to the property until I die.

I had the company closed as part of the same transaction.

Unfortunately, as is so often the case here, the lawyers didn't complete the process, and this year my brother in law - who became MD of the company during the interim stages of my divestment, was summonsed by the police for non payment of company tax, and annual company fees etc.

I had to go to Chonburi and sort it all out with the local office, and the company is now closed and dead.

Many will still say that I was a bit premature in taking this action, but at least every time this subject rears it's ugly head with scaremongering headlines, I for one have no worries and sleep easy. And that was the reason I took the action at the time.

Life is too short to worry that one day I may be arrested, or have my home seized, however slight that risk may be.

[Acharn]

whats so funny is the banner adds on this post build a home in Thailand

never been a good idea but its getting worse not only do you have to screen your partner but the Thai government is becoming more anti western month buy month

Vietnam is booming compared to the backward ideas on investment from Thai government

I can't speak from personal experience, but I have a friend here in Thailand who is married to a Vietnamese woman. He goes to visit her between school terms. It's true that Vietnam is booming, but he complains to me that Vietnamese culture, such as it is, is very aggressive and competitive. The current Vietnamese generation doesn't particularly hate Westerners, but they don't like them. It's not nearly as pleasant to be there as it is here -- at least as long as you are reasonably within the law here.

[Chunkton]

Seems that this is a provincial government investigation not a Thai national government investigation. So probably for local consumption with perhaps a local election due or just looking for some extra tea money in a flat economy.

[jmdelan5]

a friend of mine had his business stolen in Viet Nam. There is no safe haven. Beware. When you live in a 3rd world country, you get 3rd world realities. Sorry this is happening but the economy is in ruins around the world. It will take years to recover. Save money and pay off debt.

[sparklerdynamo]

Checks on foreign business tieups in Phuket

PHUKET: -- A fact-finding effort is underway in Phuket to compile information about local businesses in which Thai people are hired by foreigners as their nominees - a practice considered suspicious and possibly illegal.

Provincial governor Wichai Phrai-sa-ngob, who ordered the investigation, said he was not discriminating against foreign investors, but guarding against illegal nomination which exploited loopholes in Thai laws for personal gain.

Under the business nomination law, foreigners can hold no more than 49-per-cent ownership of any business they jointly invest in with Thais. An ongoing practice is that foreigners later gain control over Thais illegally, and enjoy a lower tax burden than when holding a minority ownership.

To scrutinise foreign businesses, the local revenue office is checking on their tax payments, while the treasury office is scrutinising ownership of condominium space. Immigration police are checking visa and residence status.

Local authorities and the Interior Ministry will look into all information and decide on what to do if the fact-finding reveals illegal business nomination activities, said the governor.

There are now 19,653 joint Thai-foreign businesses in Phuket, which have invested around Bt62 million.

Patong Municipality mayor Chairat Sukbhal dismissed reports most hotels on the island resort were owned by foreigners, saying most were operated as joint ventures, or under management staffed by foreign executives.

The provincial business and trade office said a regulation requiring joint Thai-foreign businesses to produce bank accounts with a high minimum amount of money deposited had been revoked, because it could not effectively serve as proof of substantial business funding.

"In most cases, the money was withdrawn immediately from bank accounts once they were offered to Thai authorities as proof," office head Weerachai Tantiwatthanawallop said.

The provincial land office said legal action would be taken against any businesses found to have been operated illegally with a majority of foreign ownership, because Thai land laws imposed strict sanctions on foreigners owning land plots in Thailand.

-- The Nation 2009-09-02

I find it funny that they would go after foreigners by checking their tax payments when the vast majority of Thais have made the practise of tax evation a common day to day routine.

The figures posted on here (62 million baht / 19000 businesses) probably are right. That may very well be the reason or rather the katalyst for the government to look into this (aside from the buying land rumours).

When starting a business here in Thailand, I have been told the authorities do not even check the foreigners capital on company bank accounts (there are foreigners that don't have any capital at all and still manage to setup a company). Mind you, on 2 million registered capital, the paid up portion is supposed to be 500,000.00 baht (which should be in a company bank account) however, that money (registered capital) can of course be used to facilitate business after prove has been given in fact, that is exactly what it's for and it is definitely not illegal. If I invest any money in a company, I expect it will be used in one way or another there is absolutely nothing strange about that.

[givenall]

This is just a result of the poor economy. This way they can drive up some extra tax revenue and satisfy local Thai business owners currently struggling.

As long as they stick with what's described, going after only those joint businesses that aren't on the up and up, I see no big problem.

Actually myself, like a lot other farangs business becoming very careful in investing or spending more money for our businesses because of these laws and witch hunts, so I can’t see how these will help Thai people or rise new taxes.

I also have reduced the number of employee I have and again same result.

Overall is not helping when will these clown release that making things harder reduces the investment and only hurt the economy, but again Elite runs these country and they don’t give a sh,,,,t about common Thais anyway

[ingvar]

As I understand; if you are American (from U.S.A) you can own a company 100% and operate it without Thai staff. It is some special agreement between USA and Thailand.

Sometimes I wish I was American....

[Scepisle]

was going to move full time to Thailand.. but have decided on a much more foreigner friendly country.... Malaysia... just way too many restrictions on us in Thailand... they hardly throw out the welcome mat to foreigners... and by the way I was looking to invest heavily in my new country. Pity, as the beaches are wonderful.... will continue to visit as a tourist..

[animatic]

Obviously there is a new guy at the helm in Phuket or his boss is new in Bangkok,

and he needs to be seen to be doing 'something'. This nationalistic trend is easy to see,

when budgets are slashed, and work is limited because investment is down.

Thai's are poorer on a daily basis, and think to blame local farangs since they are an

easy target the arrogant bastards, daring to actual MAKE money in bad times,

and look like they do. Though the typical farang always 'looks richer' than a middle class Thai.

Never mind the majority are nice people trying to enjoy a reasonably quiet comfortable life.

Likely it has to do with flavor of the month.

Ministry or department is short on budget, hit the farangs again, or at least a few,

puts the workers to work, makes them look like they are doing something

and tea money is possible, plus one or two 'show hassles' from those that are uncooperative.

And the hook was provided by those idiot rubber farmers up north bitching about

fanangs and Thai wives, buying land and making a go of it, and they are not.

Scream loudly and in the press, maybe the gov will send money up to them.

Examples must be made. Go find me 1 farang with something amiss,

so my boss thinks I'm working.

Is this all that much more surreal than 'hub of the month club',

or 'Only Thaksin can save Thailand from perdition' not really?

Credulity is the national sport here, replacing mental gymnastics,

since there are so few competitors..

One guy gets some press saying something, often the immigration guys,

next the Land Office guy does the same thing. Then a month later

Tourism Of Thailand tries to counter act it with hot air and wet dreams.

Follow the money, and the nationalists will follow

like mosquito's to a happy camper.

Edited September 2, 2009 by animatic

[ukrules]

As I understand; if you are American (from U.S.A) you can own a company 100% and operate it without Thai staff. It is some special agreement between USA and Thailand.

You are referring to the treaty of Amity which allows Americans a lot of benefits that aren't afforded to members of other nations.

[grantbkk]

I wonder if anyone cares that the ones who are announcing yet another "crackdown" somehow became billionaires in their lowly civil service jobs. The more titles that land crowd know what's going on. I once met with the top estate representatives for the island and asked them how can they legally keep selling high-end homes to foreigners with questionable land deeds? The consensus was that it is totally illegal but as long as they can make money they will be taking money form anyone who will give it up.

[asiawatcher]

Checks on foreign business tieups in Phuket

PHUKET: -- A fact-finding effort is underway in Phuket to compile information about local businesses in which Thai people are hired by foreigners as their nominees - a practice considered suspicious and possibly illegal.

Provincial governor Wichai Phrai-sa-ngob, who ordered the investigation, said he was not discriminating against foreign investors, but guarding against illegal nomination which exploited loopholes in Thai laws for personal gain.

Under the business nomination law, foreigners can hold no more than 49-per-cent ownership of any business they jointly invest in with Thais. An ongoing practice is that foreigners later gain control over Thais illegally, and enjoy a lower tax burden than when holding a minority ownership.

To scrutinise foreign businesses, the local revenue office is checking on their tax payments, while the treasury office is scrutinising ownership of condominium space. Immigration police are checking visa and residence status.

Local authorities and the Interior Ministry will look into all information and decide on what to do if the fact-finding reveals illegal business nomination activities, said the governor.

There are now 19,653 joint Thai-foreign businesses in Phuket, which have invested around Bt62 million.

Patong Municipality mayor Chairat Sukbhal dismissed reports most hotels on the island resort were owned by foreigners, saying most were operated as joint ventures, or under management staffed by foreign executives.

The provincial business and trade office said a regulation requiring joint Thai-foreign businesses to produce bank accounts with a high minimum amount of money deposited had been revoked, because it could not effectively serve as proof of substantial business funding.

"In most cases, the money was withdrawn immediately from bank accounts once they were offered to Thai authorities as proof," office head Weerachai Tantiwatthanawallop said.

The provincial land office said legal action would be taken against any businesses found to have been operated illegally with a majority of foreign ownership, because Thai land laws imposed strict sanctions on foreigners owning land plots in Thailand.

-- The Nation 2009-09-02

What is it with Phuket that all doomsday items arising on ThaiVisa Forum seems to originate there? Got me beat!

[xerostar]

What with all the other crackdowns on foreigners in Thailand

this is beginning to look like the thin end of a Mugabe wedge!

Edited September 2, 2009 by xerostar

[Garret]

It must be real important to the rest of the country as well......What about Bangkok and Pattaya or even Hua Hin ? when they say they will investigate condo space would thay be to see what company built them? What next will it be people like me whose company owns my house?

A Nation of babies Governed by Idiots or is it the other way around?

[Crushdepth]

Provincial governor Wichai Phrai-sa-ngob, who ordered the investigation, said he was not discriminating against foreign investors, but guarding against illegal nomination which exploited loopholes in Thai laws for personal gain.

More pathetic government xenophobia. And from the single most tourist-dependent province in the country. Don't suppose there will be any action against the Thai nominees...

[SNGLIFE]

Stopping corruption is easy. Pay officials a LOT more money, or someone else will. The increased revenues gained by simple enforcement of the law will more than offset the pay increases.

[surfaxxis]

It's the classic effort to divert public attention from the other homemade ills in this country that are ignored year-in and year-out. The poor infrastructure, education and other problems are constantly ignored so that the fat cats can stay rich and the poor, well you get the picture.

Yes, as in the song by Midnight Oil, " the rich get richer, the poor get the pitcher", or is it the rich get the Moet and the poor get rice vodka.

Its time we had some democracy in this country

[garvin123g]

62 million baht invested in 19000 businesses, that is only 3150bt each business. Figures dont sound right to me.

That's the first thing I thought, the original article was obviously written by some form of moron. Complete lack of basic fact checking and in this case intelligence.

Typical reporting in Thailand.. If you want a REAL math lesso, listen to the English news o the Radio.. the 6PM or so national news?? NO one EVER does the math.. an example/ for instance.." Thai Rice Exports arre UP 75% over last year. 2007 Rice exports were 400 tons, 2008 exports are 250 tons...." .. ok not not an exact quote but this type of statement is made regulary. I pointed this out ot a Thai friend, a well educated businessman. He did not even register the in-consistancey in the stated facts/statistics.. I am uncertain as to if people or so use to everything comming out of the "News" is Bull... and therefore tuned out automaticly, or what.. I have noticed for Years (since 1984 anyway) so it is NOT just one regime manipulating the news.... it is just standard practice. The other thing is a similar tyoe of statement where aples and oranges are compared and a falacious conclusion given as fact..

Can't think of an example there just now-- brain fart..., but you mostlikly recognise what I mean..

Oh well......

Like

[edgarfriendly]

greed is insatiable, by definition.

more than necessary.

ef.

im glad to see theres a few awakened cats on here for a change.

[EmU]

I am pretty sure there are better pastures for play in S.E.A. than hassle prone Thailand, where farangs are seemingly NOT wanted.

Vietnam, Laos, Cambodia, Malaysia and possibly cheapest of all for expats, according to a world survey, Philippines, well Manila.

may be we should make the thais happy and we should just leave I'm sure there are friendlier places to live.

[Thailand]

was going to move full time to Thailand.. but have decided on a much more foreigner friendly country.... Malaysia... just way too many restrictions on us in Thailand... they hardly throw out the welcome mat to foreigners... and by the way I was looking to invest heavily in my new country. Pity, as the beaches are wonderful.... will continue to visit as a tourist..

Had a look at their 10 year visa program, seems to be rather restrictive and a lot of cash needs to be tied up particularly if there is a couple, minimum purchase price for property, compulsory local health insurance etc.

[animatic]

http://www.thailawforum.com/database1/amity.html

TREATY OF AMITY AND ECONOMIC RELATIONS

BETWEEN

THE KINGDOM OF THAILAND

AND

THE UNITED STATES OF AMERICA

------------------------------------------------------------------

The Kingdom of Thailand and the United States of America, desirous of promoting friendly relations traditionally existing between them and of encouraging mutually beneficial trade and closer economic and cultural intercourse between their peoples, have resolved to conclude a Treaty of Amity and Economic Relations, and for that purpose have appointed as their Plenipotentiaries:

HIS MAJESTY THE KING OF THAILAND:

His Excellency THANAT KHOMAN, Minister of Foreign Affairs of the Kingdom of Thailand;

and

THE PRESIDENT OF THE UNITED STATES. OF AMERICA:

His Excellency GRAHAM MARTIN, Ambassador Extraordinary

and Plenipotentiary of the United States of

America to the Kingdom of Thailand;

Who, having communicated to each other their full powers found to be in due form, have agreed as follows;

ARTICLE I

1. Nationals of either Party shall, subject to the laws relating to the entry and sojourn of aliens, be permitted to, enter the territories of the other Party, to travel therein freely. and to reside at places of their choice and in particular to enter the territories of the other Party and to remain therein of the purpose of : (a) carrying on trade between the territories of the two Parties and engaging in related commercial activities; or ( developing and directing the operations of an enterprise in which they have invested or are actively in process of investing a substantial amount of capital. Each Party reserves the right to exclude, restrict the movement of, or expel aliens on grounds relating to public order, morals, health and safety. The provisions of ( above shall be construed as extending to a national of either Party seeking to enter the territories of the other Party solely for the purpose of developing and directing the operations of an enterprise in the territories of such other Party in which his employer has invested or is actively in the process of investing a substantial amount of capital, provided that such employer is a national or company of the same nationality as the applicant and that the applicant is employed by such national or company in a responsible capacity.

ARTICLE III

1. Each Party shall at all times accord fair and equitable treatment to nationals and companies of the other Party, and to their property and enterprises; shall refrain from applying unreasonable or discriminatory measures that would impair their legally acquired rights acid interests; and shall assure that their lawful contractual rights are afforded effective means of enforcement, in conformity with the applicable laws.

2. Property of nationals and companies of either Party, including direct or indirect interests in property, shall receive the most constant protection and security within the territories of the other Party. Such property shall not be taken without due process of law or without payment of just compensation in accordance with the principles of international law.

3. The dwellings, offices, warehouses, factories, and other premises of nationals and companies of either Party located within the territories of the other Party shall not be subject to entry or molestation without just cause. Official searches and examinations of such premises and their contents shall be made only according to law and with careful regard for the convenience of the occupants and the conduct of business.

ARTICLE IV

1. Nationals and companies of either Party shall be accorded national treatment with respect to establishing, as well as acquiring interests in, enterprises of all types for engaging in commercial, industrial, financial end other business activities within the territories of the other Party.

5. Nationals and companies of either Party shall enjoy the right to control and manage the enterprises which they have established or acquired within the territories of the other Party, and shall be permitted without discrimination to do ail things normally found necessary and proper to the effective conduct of enterprises engaged in like activities.

ARTICLE VI

1. Nationals and companies of either Party shall not be subject to the payment of taxes, fees or charges within the territories of the other Party, or to requirements with respect to the levy and collection thereof, more burdensome than those borne by nationals, of all third countries. The rates for such fees shall not exceed those charged such nationals of any third country residents and companies of any third country. In the case of nationals of either Party residing within the territories of the other Party, and of companies of either Party engaged in trade or other gainful pursuit or in non-profit activities therein, such taxes, fees, charges and requirements shall not be more burdensome than those borne by nationals and companies of such other Party.

3. Companies of either Party shall not be subject, within the territories of the other Party, to the payment of taxes upon income not attributable to sources within such territories, or upon transactions or capital not attributable to the operations and investments thereof within such territories.

Edited September 2, 2009 by animatic

[olsen]

I find this action from the government okay...if foreigners in Thailand can't stay legal...better stay away!