Confusion About Being "Employed" By A Thai Company

[sfmadison2]

After hopelessly sifting through bits and pieces of other threads in search of an answer, I've decided to just post this directly and hopefully hear from some of the experts on this one:

My Thai friend owns a large business in Bangkok. I brought up the possibility of him "employing" me with his company, in order for me to get a legitimate visa (which i assume would be an non-imm B, further extended upon getting a WP). I may or may not do actual work for him, though either way it seems unlikely that I would draw a salary. He said we would need to look into whether this is possible, because he's not sure about the starting capital requirements.

The facts:

--He currently employs around 30 thai employees.

--His company already sponsors the visa for one foreigner, who is co-founder of the company (i don't know him).

--The registered starting capital for the company was 7 million baht.

1) His concern is that this starting capital amount is maybe not enough to cover 2 foreigners working for the company? From what I can find, it seems like it shouldn't be an issue, but I'm certainly not an expert on thai visa law.

2) If in fact I am right and he is legally able to employ/"employ" me, what sort of hoops would we need to jump through in order to make sure everything is on the level and I don't become a burden to him? I believe I would need a tax ID, a WP, anything else?

Many thanks in advance for any light those who have come before me might be able to shed on this issue (sorry, terrible sentence). Once it comes time for paperwork, I'm not averse to hiring a lawyer who is familiar with the particulars of these cases. Prior to this, though, I'm just trying to get an understanding of whether it's possible, so I can further inform my Thai friend of the situation.

I am currently residing in Chiang Mai.

[crille30]

The registerd capital is more then enough for wp for 2 farangs,think its 2milion per wp so no problem there.As for costs is tax and social insurence for you and then you need to show salery of 50k a month for your wp but that can be solved god for the company,they "pay " you there salery and get it out of the company as a cost but you have to give it back in to there pocket.But now we talking about very, very grey zone I called it creative taxplanning other will call it iligal.But who would know? ,

[ubonjoe]

The 50K baht salary is for extension of stay at immigration. There is no minimum salary for a work permit. OP could get a multiple entry visa in KL which would not require the 50K salary but he would have to make border runs every 90 days.

[Gone]

If you get caught you could be arrested and deported.

If he gets caught he could lose his business.

How would you pay tax? You need to be legal here in Thailand.

There are 20,000,000 farangs that want to live here but why do you think they are not doing what you suggest and just pay a Thai 50k or something to do this?..........

Will you pay for his lost business after you are caught? Will you give the employees new jobs when they lose theirs?

((flame removed))

PS: I don't think Thai Visa is for discussing illegal matters.

Edited August 13, 2012 by lopburi3
personal flame removed

[sfmadison2]

crill30: thanks for the information about minimum capital needed.

ubonjoe: i'm a bit confused by your answer, could you elaborate a bit? are you saying that it's possible to get a work permit--thus working legally in thailand--yet not be eligible for the extension? I thought the procedure was: a)take a letter outside thailand, get a three-month non-imm b)during the last 30 days, go back to immigration with your visa and newly-acquired WP, and get another 9 month extension, effectively making it a 1 year visa, and c) provided you are with the same company, retain eligibility to extend for another year at the end of that. and of course not have to leave the country every 90 days.

Many years ago (8?) i worked for a major university in BKK where my base salary was around 25k per month. How was it that they were able to get me a work permit & extension, although my salary was nowhere near 50k?

Gone: I think you're overreacting a bit, though I respect your sentiments. I know I put "employ" in quotes, though i also put it without quotes, and as you might see from my post, I am looking to go about it in as legitimate a way as possible. Still, I respect your concerns, and I will concentrate my efforts on trying to find a way that is not illegal. How about investing capital in a Thai business venture? Does that entitle one to any visa rights?

[Mario2008]

An investment of 10 million might qualify you for an extension of stay.

[sfmadison2]

ubonjoe: i'm a bit confused by your answer, could you elaborate a bit? are you saying that it's possible to get a work permit--thus working legally in thailand--yet not be eligible for the extension? I thought the procedure was: a)take a letter to a consulate outside thailand and get a three-month non-imm b)during the last 30 days of that visa, go back to immigration with your newly-acquired WP and get another 9 month extension, effectively making it a 1 year visa, and c) provided you are with the same company, retain eligibility to extend for another year at the end of that. and of course not have to leave the country every 90 days.

Many years ago (8?) i worked for a major university in BKK where my base salary was around 25k per month. How was it that they were able to get me a work permit & extension, although my salary was nowhere near 50k?

Thanks also, Mario2008, for your answer.

[lopburi3]

Because teachers are exempt as are media and a few others. There are also requirements for the company to have tax records which a new company would not and that would prevent extensions of stay for some.

[sfmadison2]

Thanks, Lopburi.

[Dork]

The company possibly doesn't mind sponsoring you for a WP because the tax & social security due on a salary of 50k/month is less than the corporate tax due on 600k/year - assuming the company is profitable.

[sfmadison2]

The company possibly doesn't mind sponsoring you for a WP because the tax & social security due on a salary of 50k/month is less than the corporate tax due on 600k/year - assuming the company is profitable.

can you elaborate on what you mean by this statement? sorry, having trouble following the logic.

[digitalchromakey]

The company possibly doesn't mind sponsoring you for a WP because the tax & social security due on a salary of 50k/month is less than the corporate tax due on 600k/year - assuming the company is profitable.

can you elaborate on what you mean by this statement? sorry, having trouble following the logic.

Presume Dork is implying that for a profitable company Tax/Social due on 600K salary declared as outgoings of 50K pcm (600K p.a.) is less than the corporate tax on 600K of profit (depends on precisely how profitable the company is).

[Dork]

The company possibly doesn't mind sponsoring you for a WP because the tax & social security due on a salary of 50k/month is less than the corporate tax due on 600k/year - assuming the company is profitable.

can you elaborate on what you mean by this statement? sorry, having trouble following the logic.

Presume Dork is implying that for a profitable company Tax/Social due on 600K salary declared as outgoings of 50K pcm (600K p.a.) is less than the corporate tax on 600K of profit (depends on precisely how profitable the company is).

Yes, that's exactly what I was saying. I used the figure of 50k/month because that is the minimum salary to qualify for a WP (depending on Nationality).

Corporate tax in Thailand is 30% which in this example would equate to 15k/month whereas an employee earning 50k/month would pay income tax and SS of less than half that amount.

This is based on the scenario that you described above, which the way I read it sounds like you are not really intending to actually work and presumably they would not actually pay you. In that case it would be tax evasion and therefore clearly illegal. However my point was just that anyone making such an offer would not be doing you as big a favour as it may seem, whatever the legalities are.

[Mario2008]

50K is not the minum requirement for a work permit (although some labour offices do require this income). It is the requirment for an extension of stay from immigration.

Many people don't have this income but do have a work prmit and leave the country every 90 days on a non-B visa.