Work Permit - New Rules?

[latelyo]

Have you seen this, published 16.9., Pattaya Today. True or not?

[Mario2008]

If I recall correctly Phuket announced recently simmilair news. It seems that Labour now allows work permits for free lancers, but as of yet there are not much details.

Always note that the rules for a work permit are different from the rules for getting an extension of stay based on employement and such.

[StateSix]

A foreign company can set up a Representative Office within Thailand. Work permits can then be obtained for foreign staff working within it.

There is no need for the 51/49% ownership rules and no paid up capital is required.

There are, of course, a number of restrictions, the main one being that the Rep Office cannot generate income within Thailand.

[Soutpeel]

A foreign company can set up a Representative Office within Thailand. Work permits can then be obtained for foreign staff working within it.

There is no need for the 51/49% ownership rules and no paid up capital is required.

There are, of course, a number of restrictions, the main one being that the Rep Office cannot generate income within Thailand.

Yes...and your point is ?

[Soutpeel]

If I recall correctly Phuket announced recently simmilair news. It seems that Labour now allows work permits for free lancers, but as of yet there are not much details.

Always note that the rules for a work permit are different from the rules for getting an extension of stay based on employement and such.

There also seems to some mis-information in the article as well Re pre-approval of WP's for people who have not yet entered Thailand, stand to be corrected but don't believe WP's were ever pre-approved outside the country, you had to wait until you entered the country and did the formalities ?

Personally I wouldnt read too much into this, as if is true and its is as simple as paying tax in Thailand...this will be a world first for any country, as we all know with Thailand things are never that simple.

[KamnanT]

If the independent/self-employed passage is true, it sounds like a farily common sense move to get these types of workers normalised and (more importantly for the Thai government) on to the tax rolls.

[PattayaPhom]

Considering the amount of foreigners openly working in 'Restricted Occupations' in Pattaya, I wouldnt really take much notice of this.....tour guides, burger vans, waiters etc etc etc.....

[StateSix]

A foreign company can set up a Representative Office within Thailand. Work permits can then be obtained for foreign staff working within it.

There is no need for the 51/49% ownership rules and no paid up capital is required.

There are, of course, a number of restrictions, the main one being that the Rep Office cannot generate income within Thailand.

Yes...and your point is ?

That it is currently possible to obtain a work permit without working for a Thai company, which fits in with the opening paragraph of the article. It may be something that not everyone is aware of.

[Tatsujin]

A foreign company can set up a Representative Office within Thailand. Work permits can then be obtained for foreign staff working within it.

There is no need for the 51/49% ownership rules and no paid up capital is required.

There are, of course, a number of restrictions, the main one being that the Rep Office cannot generate income within Thailand.

Yes...and your point is ?

That it is currently possible to obtain a work permit without working for a Thai company, which fits in with the opening paragraph of the article. It may be something that not everyone is aware of.

So how does that work then? You set up a Rep office (which cannot generate any income), a WP is then obtained thru this Rep company . . . that member of staff then needs to be paid, does that income have to come solely from an overseas account? What about the requirements to show you having paid Income Tax in Thailand on any salary to maintain that WP? Is that not then "income" thru the Rep office?

[latelyo]

Translation of the new work permit law

http://www.thailawforum.com/database1/thailand-work-permit-law.html

[petedk]

A foreign company can set up a Representative Office within Thailand. Work permits can then be obtained for foreign staff working within it.

There is no need for the 51/49% ownership rules and no paid up capital is required.

There are, of course, a number of restrictions, the main one being that the Rep Office cannot generate income within Thailand.

Yes...and your point is ?

That it is currently possible to obtain a work permit without working for a Thai company, which fits in with the opening paragraph of the article. It may be something that not everyone is aware of.

So how does that work then? You set up a Rep office (which cannot generate any income), a WP is then obtained thru this Rep company . . . that member of staff then needs to be paid, does that income have to come solely from an overseas account? What about the requirements to show you having paid Income Tax in Thailand on any salary to maintain that WP? Is that not then "income" thru the Rep office?

Don't forget to get a health certificate stating that you don't have leprosy, elephantitis, or are mentally insane. I'm applying for a work permit next week and was told I need a certificate to verify this.

[Tatsujin]

There sure are a lot of clauses, annexes and articles . . . how many trees does all the paperwork in Thailand kill every year? lol

[Soutpeel]

A foreign company can set up a Representative Office within Thailand. Work permits can then be obtained for foreign staff working within it.

There is no need for the 51/49% ownership rules and no paid up capital is required.

There are, of course, a number of restrictions, the main one being that the Rep Office cannot generate income within Thailand.

Yes...and your point is ?

That it is currently possible to obtain a work permit without working for a Thai company, which fits in with the opening paragraph of the article. It may be something that not everyone is aware of.

A Representative office is a "Thai company"....the company is registered in Thailand

[Soutpeel]

Translation of the new work permit law

http://www.thailawfo...permit-law.html

and what of the relevant bits as related to freelancers...can see anything in there ?

[StateSix]

A foreign company can set up a Representative Office within Thailand. Work permits can then be obtained for foreign staff working within it.

There is no need for the 51/49% ownership rules and no paid up capital is required.

There are, of course, a number of restrictions, the main one being that the Rep Office cannot generate income within Thailand.

Yes...and your point is ?

That it is currently possible to obtain a work permit without working for a Thai company, which fits in with the opening paragraph of the article. It may be something that not everyone is aware of.

A Representative office is a "Thai company"....the company is registered in Thailand

It is not a Thai company in the sense that it has to be 51% Thai owned. It is 100% owned by the foreign company. Yes, it has to be officially registered with the authorities as a Rep office, but that is different, in my eyes, to being a Thai company.

This may be an option for some people to work in Thailand legally, with a WP, without the costs and hassles of setting up a Thai company with the 51% shareholding and the THB X amount of paid up capital.

[StateSix]

A foreign company can set up a Representative Office within Thailand. Work permits can then be obtained for foreign staff working within it.

There is no need for the 51/49% ownership rules and no paid up capital is required.

There are, of course, a number of restrictions, the main one being that the Rep Office cannot generate income within Thailand.

Yes...and your point is ?

That it is currently possible to obtain a work permit without working for a Thai company, which fits in with the opening paragraph of the article. It may be something that not everyone is aware of.

So how does that work then? You set up a Rep office (which cannot generate any income), a WP is then obtained thru this Rep company . . . that member of staff then needs to be paid, does that income have to come solely from an overseas account? What about the requirements to show you having paid Income Tax in Thailand on any salary to maintain that WP? Is that not then "income" thru the Rep office?

It is designed to allow foreign companies to have a legal office within Thailand to source goods or provide administrative services on behalf of the overseas company. The head office needs to send a certain amount of money to the Rep office to cover operating expenses, such as rents, salaries etc. The staff pay tax and social security on their salaries.

http://www.sunbeltlegaladvisors.com/Thailand-Representative-Office.php gives an overview of requirements. I was told lower amounts for the capital requirements.

[Soutpeel]

It is designed to allow foreign companies to have a legal office within Thailand to source goods or provide administrative services on behalf of the overseas company. The head office needs to send a certain amount of money to the Rep office to cover operating expenses, such as rents, salaries etc. The staff pay tax and social security on their salaries.

http://www.sunbeltle...tive-Office.php gives an overview of requirements. I was told lower amounts for the capital requirements.

And of course you can only set it up for a term of 5 years and further you need to repatriate THB 5.0million into Thailand over those 5 years....believe its THB 2.0 million the first year and THB 1.0 million for the remaining 3 years, so would suggest its hardly cost effective for someone who is looking for a freelance WP is it ?...

[Tatsujin]

@Soutpeel - you beat me to it . . . in no way is that a feasible option for freelance OR most anyone else.

[StateSix]

It is designed to allow foreign companies to have a legal office within Thailand to source goods or provide administrative services on behalf of the overseas company. The head office needs to send a certain amount of money to the Rep office to cover operating expenses, such as rents, salaries etc. The staff pay tax and social security on their salaries.

http://www.sunbeltle...tive-Office.php gives an overview of requirements. I was told lower amounts for the capital requirements.

And of course you can only set it up for a term of 5 years and further you need to repatriate THB 5.0million into Thailand over those 5 years....believe its THB 2.0 million the first year and THB 1.0 million for the remaining 3 years, so would suggest its hardly cost effective for someone who is looking for a freelance WP is it ?...

Whats with the smug whistle at the end? Don't believe I ever stated it was a cost effective option for someone looking for a freelance WP. I mentioned the Rep office route as an option and a way to get a WP and be here legally without having a Thai company, with the requisite paid up capital and 51% Thai shareholding. Is that OK with you petal?

For anyone interested we were advised by our lawyers, after premiminary discussions with the Minsitry of Commerce that THB 3m would be required within 3 years - 25% within 3 months of issue of licence, another 25% within 1 year and not less than 25% per year thereafter. 2 WPs would be granted. The remitted funds will be used to pay salaries, rent etc. So, in the first year THB 1.5m needs to be remitted into the Rep Office account, then THB 750,000 for the next 2 years. This will simply be transferred back out over that year to cover costs. THB 1.5m, or approx GBP 30k, isn't a huge amount for a years costs, particularly when that would include 2 salaries. The THB 1.5m isn't classed as income either so the company isn't taxed on it.

The alternative for 2 WPs would be THB 4m paid up capital, and finding a Thai you trust to be 51% shareholder, or going down the nominee shareholding grey area route. Either way the Rep Office may well be a better option for some.