Crackdown On Visiting Foreign Charter Yachts In Thai Waters: Phuket

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Radar, GPS tracking to net foreign charter yacht tax dodgers

Phuket Gazette

The crackdown on visiting foreign charter yachts in Thai waters will not affect Thai-flagged vessels. Photo: Gazette file

Phuket Marine office chief Phuripat Theerakulpisut means business. Cabinet has approved 15 million baht for the project, which includes installing radar stations and a GPS tracking system. Photo: Atchaa Khamlo

PHUKET: -- The chief of the Phuket office of the Marine Department says he is drawing up plans to launch a campaign targeting “hundreds” of visiting foreign yachts that avoid paying tax to Thai officials despite conducting “business” in Thai territorial waters.

Named among the visiting yachts to be targeted were charter tour boats for tourist activities, such as snorkeling, diving and sea tours.

“Foreign charter yachts entering Thai waters has been a problem for more than 10 years,” said Phuket Marine office chief Phuripat Theerakulpisut.

Of the hundreds of foreign charter yachts that enter Thai waters each year, some high-end businesses charter one yacht at a cost of 100,000 to 300,000 baht a day, he said.

“They make huge amounts of money from this business. By law, they must pay 20 per cent trading tax [on income earned in Thai waters] to the government, but we get nothing.

“Thailand gets nothing more than their trash and they keep all the money back in their own countries,” he said.

The Cabinet last year approved a budget of 15.1 million baht to tackle the problem.

The budget includes installing radar stations fitted with GPS satellite vehicle tracking management systems to monitor yachts arriving in Thai territorial waters and the islands around Phuket.

“Three radar stations are likely to be located at Chalong Pier and the other two places have yet to be decided, but the aim is to cover the whole island region [around Phuket],” explained Mr Phuripat.

Currently, the only way the Marine Department knows of vessels arriving in the area is if a random patrol encounters them on the high seas or if the captain presents himself and his vessel to the authorities to declare that he has arrived in Thailand, he added.

“I’d really like to come up with a long-term solution to this problem because we don’t want it to continue. Every organization [government and private] is affected by this, so we will need an integrated effort if we want the project to succeed,” Mr Phuripat said.

Once the details have been finalized, the plan will be presented to Cabinet for approval, he added.

However, Mr Phuripat stressed that the crackdown will not affect Thai-registered vessels.

Source: http://www.phuketgaz...gers-17996.html

-- Phuket Gazette 2012-09-25

[robblok]

Why not check Thai registered vessels too if taxes are paid when they do commercial things. Sounds again like a blame the foreigner game.

[Shot]

“They make huge amounts of money from this business. By law, they must pay 20 per cent trading tax [on income earned in Thai waters] to the government, but we get nothing.

“Thailand gets nothing more than their trash and they keep all the money back in their own countries,” he said.

Start charging 20% at watch them go elsewhere. Lots of other places to visit.

Spend the 15.1 million cleaning up the beaches and installing proper trash bins. This will draw more tourists and you’ll get your 15.1 million back x 10.

[jpp2bkk]

Foreigners avoiding paying taxes in Thai waters is as "natural" as the criminal Thai sailors avoiding responsibilities when banging into tourists in Thai waters. A word to the wise is enough Phuripat.

[animatic]

If you charter a boat in Malaysia and sail to Thailand,

why should Thailand get a cut from a charter in another country?

Just another attempt at profit through extortion.

[stevenl]

If you charter a boat in Malaysia and sail to Thailand,

why should Thailand get a cut from a charter in another country?

Just another attempt at profit through extortion.

Depends, if you employ activities here, like snorkeling, diving, etc., you are required to pay for that. Same as Thai vessels diving in Burma have to pay 200 US$ per person.

Start charging 20% at watch them go elsewhere. Lots of other places to visit.

Since at the moment they are not or hardly making any money on this, I don't think the Thai authorities will mind if they go somewhere else.

[bkkjames]

I guess they feel that Boat Owners should feel lucky to spend money visiting Phuket and thus should pay extra for this privilige.

[KarenBravo]

I kind of agree with the OP.

Many yacht owners have jumped through the hoops to get Thai registry, have opened a proper company and do charters.

Why should foreign registered yachts just crap all over the guys who took the time money and effort to do it all legally?

[asiawatcher]

The same thing happened in the film industry here. They wanted 10% tax on income of actors, so if Nic Cage came in for Bangkok Dangerous and got 20M - the Govt wanted 2M? Yep that will keep the film industry buoyant. But if Nic gets paid in USD, to his accounts offshore, he is technically not earning here, because he already has been paid either by a deposit and get the balance on return or he got it up front. So if he has a work permit (which he received) it is up to the pay master to proportion the payment but there is no way they will pay 10% of his gross.

In the case of the boats, they are paid offshore, and cruising into Thai waters hardly constitutes working and unless they dock they may only be in breach of territorial waters. But asking 20%? Most likely that is the number so the coastal patrols can ask for a payoff but as the Thai 'authorities' have not determined the rate of the charter it would all be guesswork. And as stated, if they are not paying now, then there is no loss if they go elsewhere. If the authorities were sensible they would come up with a low fee to dock like 10,000 Baht, and let the charter tourists spend their dollars within Thai waters. But that would be logical.

[robblok]

I kind of agree with the OP.

Many yacht owners have jumped through the hoops to get Thai registry, have opened a proper company and do charters.

Why should foreign registered yachts just crap all over the guys who took the time money and effort to do it all legally?

That is a good point and if others do it legally then it should be enforced. I was just under the impression that the Thais themselves did not pay much taxes or do it legally. But if they do then everyone should. Else its unfair competition.

[Screws]

“They make huge amounts of money from this business. By law, they must pay 20 per cent trading tax [on income earned in Thai waters] to the government, but we get nothing.

“Thailand gets nothing more than their trash and they keep all the money back in their own countries,” he said.

Start charging 20% at watch them go elsewhere. Lots of other places to visit.

Spend the 15.1 million cleaning up the beaches and installing proper trash bins. This will draw more tourists and you’ll get your 15.1 million back x 10.

Then we get 'em with the jet skis and 'the wat is closed today, but my friend has a jewellery store' scams!

Good thinking, 99!

[cloudhopper]

Are there really that many Malaysian etc. flagged vessels bringing snorkelers, divers and sea canoe tourists to the Phuket region? I see it at Lipe (which already has several radars and an immigration post) along with a few Sunsail charters out of Langkawi but that's about it. The yachts they will never know which are private and which are charter and this 3 radar/GPS tracking scheme is pure fantasy.

[animatic]

I chartered a boat in France, sailed to Italy and back.

Italy did not even hint I should pay more than a docking fee for the space for the night and electric hook up.

That is generally how it is world wide. If you pay for services in Thailand you pay taxes.

If you go diving off your Australian chartered yacht in New Zealand, with gear you brought or own,

do you have to pay a diving tax? I don't think so. But it seems Thailand wants 20% of the charter fees,

or the equivalent costs in fees for anything you can also do with a Thai rental.

Port fees are one thing, but chasing people cruising by who anchor off shore and demanding a kick back is going to come across like piracy. Not so far off from Thai fishing boat crews being grabbed by Somalies and money demanded.

[robblok]

I doubt its for yachts that are privately used. Once you start taking on passengers and making a buck they want their cut.

[pagallim]

Definitely seems like they are clutching at straws with this, as it's highly likely that only the crew and not the actual owner(s) of costly foreign vessel charters would be onboard from which to claim taxes. However, there is a definite lack of 'policing' of vessels coming into Thai waters, with little to no patrolling taking place (certainly in the areas around Phuket). Ensuring vessels mooring for leisure activities within Marine National Park areas are paying the required fees would be one way of generating revenue.

Edited September 25, 2012 by pagallim

[Bung]

I chartered a boat in France, sailed to Italy and back.

Italy did not even hint I should pay more than a docking fee for the space for the night and electric hook up.

That is generally how it is world wide. If you pay for services in Thailand you pay taxes.

If you go diving off your Australian chartered yacht in New Zealand, with gear you brought or own,

do you have to pay a diving tax? I don't think so. But it seems Thailand wants 20% of the charter fees,

or the equivalent costs in fees for anything you can also do with a Thai rental.

Port fees are one thing, but chasing people cruising by who anchor off shore and demanding a kick back is going to come across like piracy. Not so far off from Thai fishing boat crews being grabbed by Somalies and money demanded.

Precisley.

No doubt, like a lot of his peers K. Puripat has come up with a way for everyone to make money. Pats on the back all round and will do well come promotion time. the 15mil budget for the survelance will also be a nice bit of cream to skim. Win win for everyone except the yacht owners getting harrased.

[madmitch]

By law it's 20% but this is Thailand and how much does the law actually apply to the letter?

Compromise is the answer. Logical and beneficial (sort of) for all parties concerned.

So 5000 baht to the taxman and 5000 baht to the harbourmaster's retirement fund.

[belg]

ah, more free money for the water and tea police

[steelepulse]

As others have said, this will be a nice tea money maker for the authorities when they board a vessel, show a piece of paper and threaten jail time or impoundment, then settle on a nice figure and away they will go.

[HerbalEd]

I guess they feel that Boat Owners should feel lucky to spend money visiting Phuket and thus should pay extra for this privilige.

Doesn't seem that different when you/we pay for tax on hotel bill.

[jojodontyouknow]

Yachting tours are already peng maak in Phuket. As soon as the captain's get word that they have to fork over 20%, I believe the tourists chartering those yachts will also be charged a higher rate for their trip. I don't think that's gonna fly too well with the tourists

[sunshine51]

Arrrggghhhh Laddies....

Gimme alll yer gold & lassies an I'll let ye visit fer some time

then kick yee out n be see'in ya on yer way to Davey Jones.

<deleted> preposterous!

Edited September 26, 2012 by sunshine51

[noob7]

Why not check Thai registered vessels too if taxes are paid when they do commercial things. Sounds again like a blame the foreigner game.

Did you miss the important part in the headline?

"..foreign yachts that avoid paying tax to Thai officials.."

I think, Thai vessel owners can't avoid that! To get their papers done, they will have to, for sure!

[cdnski12]

I wonder if the Tea & Tax Police collect same, same from Jet Ski Scam Operators and Scooter Scam Operators. Oh no ... I forgot ... the T & T Police actually own the aforesaid Phuket Rental Agencies ... or are "secret investors" ... or "secret scammers". They at least lend the "muscle" to collect the Exorbitant Damage Fees. It will be interesting to see how the Phuket Thais treat the US Navy in a few days.

[noob7]

Depends, if you employ activities here, like snorkeling, diving, etc., you are required to pay for that. Same as Thai vessels diving in Burma have to pay 200 US$ per person.

Charging your customer 200 US$ means not, that the Burmese Immigration is charging 200 US$ for the diving visa!

[stevenl]

Depends, if you employ activities here, like snorkeling, diving, etc., you are required to pay for that. Same as Thai vessels diving in Burma have to pay 200 US$ per person.

Charging your customer 200 US$ means not, that the Burmese Immigration is charging 200 US$ for the diving visa!

No, but it does mean what this article is about: to commercially use the waters of another country the customers have to pay (directly or indirectly) for that use.

[Tanaka]

Next step, with the same logic implemented, will be to tax every incoming tourist with the assumed amount he will spend here and for the ticket he has already paid for.

[HUAHIN62]

So what many posters are saying is that ......

If I have a game farm thats fenced in by me, maintained by me and financed by me, But I don't have the right to an portion of the income from an outside guy that charters helicopter tours (game watching) over my farm. He takes off and land on an airfield outside my farm and due to this I don't have a right to a portion of the income, although he is using my game to generate an income. Think again please.

[impulse]

Seriously, what's wrong with wanting to get some financial benefit from natural resources (and the wear and tear from foreign operators)?

I think they're talking about liveaboard yachts where the customers may and may not even have Thailand visas to come ashore and spend their money. Enjoy the water, dive to your heart's content, have a great time and don't feel obligated at all to pay for the privilege. Like you would have to pay if you booked through a Thai outfitter.

Next you guys will be griping about the fact that foreign operators have to actually pay taxes to drill oil and gas wells in Thai waters. What a ripoff that would be, huh?

Or that foreign owned aircraft would have to pay airport fees for simply landing in Thailand.

Get a grip. Not every tax and fee is a ripoff aimed at foreigners.

[noob7]

Seriously, what's wrong with wanting to get some financial benefit from natural resources (and the wear and tear from foreign operators)?

I think they're talking about liveaboard yachts where the customers may and may not even have Thailand visas to come ashore and spend their money. Enjoy the water, dive to your heart's content, have a great time and don't feel obligated at all to pay for the privilege. Like you would have to pay if you booked through a Thai outfitter.

Next you guys will be griping about the fact that foreign operators have to actually pay taxes to drill oil and gas wells in Thai waters. What a ripoff that would be, huh?

Or that foreign owned aircraft would have to pay airport fees for simply landing in Thailand.

Get a grip. Not every tax and fee is a ripoff aimed at foreigners.

Nope, they not talking about comercial yachts, coming with guests from outside.

They talking about companies with a 'private non thai' boat/yacht in Thai waters, picking up groups from the airport and counting there business as 'not Thai related' business.

Also, there are not so many operators, cruising into Thai waters from outside, with customers on board, already.

But in thev past, there have been a couple, starting from Phuket to the Andaman Isl. or Burma, (p.ex), and doing so, with 'private boat' status.

That's why I think, it's all about the 'Freud' in the headline! Afaik, 'they' never complained, as long some 'taxes' went into the right directions!