Working And Paying Taxes On Non-B Visa

[eldragon]

Im currently working on a non-B visa. My employer told me I have to work through a 90 day probationary period. And then theres processing time... But the application for a work permit has [finally] been submitted and should be ready to pick up in a few days.

My Thai employer has been paying me my full salary in cash since I started a few months ago. Theyve assured me its ok and I wont get in any trouble... But this last month (September) they deducted about 3.5% for taxes. And they told me when my work permit is completed I will have to pay back taxes to the government for all the months I was working without a work permit. I told them this doesnt make any sense, b/c Im not supposed to be working w/out a work permit and thus [in the governments eyes] would not pay taxes for the work Im not supposed to be doing. I also asked them why all of the sudden they decided to start deducting money for taxes since my work permit is not yet completed. They told me they talked to the "tax office" and were informed theyve been "doing it all wrong." Im of course getting a little worried here. Im afraid someone might connect the dots and figure out whats going on... That Ive been working illegally.

So my questions are 1.) Is this total BS? Am I getting screwed? 2.) Or are they telling the truth? Is it possibly I can I work on a non-B while my work permit is processing?

Any thoughts are appreciated. First time here. Thx.

-El Dragon

[Colabamumbai]

Can't tell you more indepth than you are not getting screwed, that small deductions is normal, some take it off some don't I think it goes to suppport social programs in Thailand, my present employer is deducting it.

I started work with my present employer in May, just got my work permit last month. That is how long it took as they did not have a clue how to do the paperwork, same for the Non B, not considered legal, but since the paperwork was in the process, but very late, I think it is a fine line.

Yes you are expected to pay taxes on income. .Wayneed here on TVF has excellent info on the tax schedule you could search and message him if he does not reply here.

[noitom]

Not paying the tax for the time already worked wouldn't be rational. The holding out of the 3% tax is normal and just make sure that you get an income statement from them which shows your earnings and tax withheld. Then go and settle your taxes with Thai revenue before they are due on the 15th of March.

[Colabamumbai]

Not paying the tax for the time already worked wouldn't be rational. The holding out of the 3% tax is normal and just make sure that you get an income statement from them which shows your earnings and tax withheld. Then go and settle your taxes with Thai revenue before they are due on the 15th of March.

Nothing is rational in this country after 3 employers in 3 years I have never received a tax statement from any of them. Some have not made the 3% deduction. Just looking at todays pay envelope, my current employer is deducting 3%. This is my first employer making this deduction.

[Mario2008]

Make sure you pay social security, it gives you free health care.

[noob7]

Make sure you pay social security, it gives you free health care.

I think, the 3% can be for both sides of the social insurance thing of 1500

It would be, if the income is 50.000

Or about 45.000 for 3.5%

So how much are you earning, guy's? I mean, by wp?

[Mario2008]

Part of social security is paid by your boss and part by you.

[noob7]

Part of social security is paid by your boss and part by you.

50% each, i know

But that is a 'should be', right?

Like the 'no driving with red license plates in the night', or 'no prostitution in Thailand', me think

[Mario2008]

Not a should be, it is enforced. The labour office protects employers and if needed goes to court on behalf of them. Most employers don't let it come that far.

[Gone]

Your Employer should have applied for a "Tax Card" for you on your behalf. Tax deducted depends on your salary. At 3% you would be making a very small salary I suspect. I have paid between 11% and 22% before. You need a Tax Card in order to pay taxes. It seems that your employer is either screwing you or maybe just learningbthe ropes too. Maybe bring these fatcts to their attention.

[eldragon]

Not paying the tax for the time already worked wouldn't be rational. The holding out of the 3% tax is normal and just make sure that you get an income statement from them which shows your earnings and tax withheld. Then go and settle your taxes with Thai revenue before they are due on the 15th of March.

But youre not supposed to be working w/out a work permit. So how can they take 3% from wages Im not supposed to be earning???

My main concern is not the money, percentages, insurance, etc... so much as the possiblity of getting in trouble. Theyre taking money from my check and supposedly giving it to the government on my behalf. Creating paper trails. I talked to them about it today. They seemed completely oblivious to the fact that Im not supposed to be working w/out a work permit.

[noob7]

Not a should be, it is enforced. The labour office protects employers and if needed goes to court on behalf of them. Most employers don't let it come that far.

Maybe that's, why some call it 'tax', or 'accounting fee for wp'?

[noob7]

Not paying the tax for the time already worked wouldn't be rational. The holding out of the 3% tax is normal and just make sure that you get an income statement from them which shows your earnings and tax withheld. Then go and settle your taxes with Thai revenue before they are due on the 15th of March.

But youre not supposed to be working w/out a work permit. So how can they take 3% from wages Im not supposed to be earning???

My main concern is not the money, percentages, insurance, etc... so much as the possiblity of getting in trouble. Theyre taking money from my check and supposedly giving it to the government on my behalf. Creating paper trails. I talked to them about it today. They seemed completely oblivious to the fact that Im not supposed to be working w/out a work permit.

[wayned]

What is your monthly salary? It's easy to figure exactly what they should be withholding each month but you do need a tax ID card.

[TerryLH]

"Make sure you pay social security, it gives you free health care."

Not all jobs are eligible for Social Security.

If your job is, you should, as Mario posted, make sure you get in the system.

Social Security is a maximum of 750 baht per month for the employee and for the employer. Right now it is a bit cheaper because of a government promotion. The promotion ends at the end of the year.

Once you are entered in the system you'll have a wait of 3 months before you get your social Security card and are assigned a hospital. You pay the 750 during those 3 months.

The Revenue Department isn't interested in whether you are working legally, or not.

Terry

[Soutpeel]

You can work while your WP is under consideration, at least you could in Chonburi when I first came here, my first WP took 6 weeks to be issued, on the tax issue based on my original experience you are suppose to be paying your proper tax from day 1 not withholding tax but PAYE, so something is is not right with what your company is doing and hence the reason they are saying you need to pay back tax.....further under the Thai labour act there is no provision for a probationary period either