Adding A Second Job

[guavagirl]

Hi there

Currently I own a Limited Partnership with my Thai boyfriend and have a WP for that business. A resort is now hiring me to do the same job (so I will work at both my business and the resort). They are currently doing the paperwork to add themselves to my current WP.

But I am wondering how this will work regarding income taxes. I am now paying the minimum amout a ferang must pay even though I don't make anywhere near that amount of money. Can I now pay less through my business since the resort will also be contributing?

Also, I am paying social security for 4 staff that I can't really afford to employ but must for my WP. But now that I will also be working for a very large resort do I still need to have these 4 staff as the resort has well over that both in staff and investment?

The resorts HR couldnt answer these questions as they have never been in a situation like this before and have outsourced someone to add them to my WP.

[SunbeltAsiaExpert]

It is entirely possible to work for more than one company in Thailand and the resort is right in doing the process of adding their company in the same work permit. However, at the time of adding the new company, it must qualify independently as per work permit requirements (e.g. 2 million baht, 4 Thai employees per 1 work permit applicant) and most importantly, the applicant must obtain clearance or approval first from the first company/original employer allowing the second company to be added. Furthermore, the second company must declare your salary based on the minimum salary schedule as prescribed by the Labor Department at the time of adding the second company. The minimum salary varies from 25,000 – 50,000 baht depending on the nationality of the applicant. Both companies will compute the said salary according to the tax schedule and submit its own, separate “monthly income tax” (Por Ngor Dor 1) to the revenue department respectively. Since the monthly income tax is a mere “assumption”, the total amount of taxable income is computed on a yearly basis hence the term, “Annual Income Tax” (Por Ngor Dor 90/91). Monthly tax submissions from both companies will then be combined to obtain the Gross Taxable Income per year, subject to deductions and derive your Net Taxable Income per year. It will be re-calculated according to the Annual Tax Schedules. If there is an overpayment (or over assumption) of taxes, naturally you will get a refund; an extra payment if there is a deficit.

In relation to renewal and/or extension of your work permit, the general rule is that, both companies must qualify separately with the requirements: 4 Thai employees, 2 million baht capital including minimum salary for foreigner(s). However, the renewal process varies from case to case basis depending on the conditions prescribed by the Labor Department. The conditions can be found on page 21 of your work permit. There are times that the conditions require you to provide all the requirements including “balance sheet” and “annual audit” or sometimes, the conditions require just the “annual income tax”. If such conditions were met and the officer is satisfied, he/she will grant the work permit renewal even if you have not fully qualified with the initial requirements. By saying this, if the conditions were merely individual documents such as the annual income tax (which reflects your income and taxes as a whole for the entire year), you may be able to renewal/extend your work permit without specifying the salary for each company (for as long as it averages the minimum salary for the 2 companies). The same may apply for the 4 Thai employees if the conditions do not reflect the social security reports. In the end, it will depend on the conditions for renewal and whether or not the officer will ask for additional documents based on your case.

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CP Tower 2, 1 Ratchadaphisek Rd

Din Daeng, Bangkok 10400

(Phra Ram 9 MRT Station Exit 1)

Tel: 02-642-0213

Fax: 02-641-1995

Website: www.sunbeltasiagroup.com

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