Tax And Visa Status

[sydneyjed]

I am currently in the tentative stages of sending clients into the kingdom and need advice on a couple of important issues and clarifications.Firstly my company is to be registered in Australia,but where do I stand if a proportion of the business earnings is to be derived from Thai company business dealings?(E.G. on a commission per client)Am I lible for tax in Thailand as well as Australia?I will after all be benefitting the Thai economy ..not taking from it!Also I do visit the kingdom on a regular basis to negotiate business and need to know if I'm o.k .not to have a work visa...Would an ASEAN business waver be the go?Thanks for your time!Jed.

[SunbeltAsiaExpert]

The general rule is that, for as long as services are performed in Thailand and income has been incurred while being in the kingdom, it is considered working and operating and therefore, subject to restrictions and consequences if there is no Thai Business Entity to support the operation. However, if the services are performed outside of the kingdom and income generated in another foreign country, regardless if the clients came from Thailand, then you are not violating any laws.

Thailand and Australia have double-taxation agreements and therefore, if taxes are paid for the income derived in Thailand, it is no longer taxable in your home-country. This only applies of course, if you have a business entity registered in the kingdom. You may not declare corporate income and pay taxes (for services performed in the kingdom) if you do not have a business entity registered from here, otherwise you are considered operating illegally.

ASEAN cards are recognized of course, but only to the extent of conducting business meetings and business visits. Under no circumstances are you allowed to work (whether fee or compensated) or perform physical exertion of labor or conduct any profit-making activities without a valid work permit.

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