"part-Time" Self Employed?

[shafty]

Assuming one is working as an employee for a Thai company with Work Permit and on a visa extension (paying the full tax) and now wants register for an own business. Does he still have to pay tax like he is paying himself a salary of 50.000? What would be required in this case, a second work permit? or can the second position be put in the same work permit?

I would say as he is already paying the full tax, this is not needed for the company because it is 'not fair' but hey, it's Thailand...

[TerryLH]

A second position can be added to a work permit.

If it's in the same area covered by the office that issued the WP.

With permission from the original employer.

All of the documents required by employer one will be required for employer two. No shortcuts.

'Full tax' is the amount due for all income, not always the same as what you think is fair.

[p_brownstone]

I can't understand your term "Full Tax".

Income Tax is calculated on your total income - however many sources of that income you have is immaterial - the more you earn the more Tax you pay.

Patrick

[shafty]

I can't understand your term "Full Tax".

Income Tax is calculated on your total income - however many sources of that income you have is immaterial - the more you earn the more Tax you pay.

Patrick

Sorry maybe not very precise

I thought you have to pay yourself a salary of 50.000baht (or pay the tax for this amount) and then you can work as MD in your own company and get a work permit for it.

So what if he already pays this tax for his employed work, does that mean he only has to pay tax on the actual income that is generated with the company?

Edited May 6, 2013 by shafty

[BrianCR]

As long as his current boss will allow it, the company (school) what ever gives him his tax return forms, he then does one for his business and takes both to the tax department they will issue a receipt for the total amount paid, not 2 receipts, as it will be issued on one tax number. It is this receipt that the labour and immigration want to see not the tax return forms and as long as the combined total exceeds the amount of tax payable on 50/55,000 baht per month (depending on the persons nationality) there will be no problem

PS just to clarify - it's the tax number shown on the receipt that has to pay the tax and as far as i remember that shows the name of the person paying plus his tax number it doesn't state how many incomes are combined

Edited May 6, 2013 by BrianCR

[shafty]

Thanks Brian!

Regarding the company it has to be a Co. Ltd right? My last information was that you need 2M baht assets to get a working permit... what about this regulation? Anything else that he should consider regarding the company (a link will be fine)

thanks again

[BrianCR]

No, it can be a Partnership Limited as opposed to A Company Limited (only requiring two directors or partners, 51% Thai 49% western). As for the 2 million baht you will still need this amount but, the actual amount can vary a little depending on where you register. Sorry I don't have any links all my knowledge is from 33 years practical experience

Edited May 6, 2013 by BrianCR

[Soutpeel]

No, it can be a Partnership Limited as opposed to A Company Limited (only requiring two directors or partners, 51% Thai 49% western). As for the 2 million baht you will still need this amount but, the actual amount can vary a little depending on where you register. Sorry I don't have any links all my knowledge is from 33 years practical experience

Doesnt the 4 Thai employee rule per WP apply under a Partnership limited apply as well ?

[FritsSikkink]

I can't understand your term "Full Tax".

Income Tax is calculated on your total income - however many sources of that income you have is immaterial - the more you earn the more Tax you pay.

Patrick

Sorry maybe not very precise

I thought you have to pay yourself a salary of 50.000baht (or pay the tax for this amount) and then you can work as MD in your own company and get a work permit for it.

So what if he already pays this tax for his employed work, does that mean he only has to pay tax on the actual income that is generated with the company?

You don't pay yourself. Your company pays you, so your company pays tax.

[BrianCR]

No, it can be a Partnership Limited as opposed to A Company Limited (only requiring two directors or partners, 51% Thai 49% western). As for the 2 million baht you will still need this amount but, the actual amount can vary a little depending on where you register. Sorry I don't have any links all my knowledge is from 33 years practical experience

Doesnt the 4 Thai employee rule per WP apply under a Partnership limited apply as well ?

Yes, all other conditions remain the same and you'll still need Thai employees it's just the number of Directors (bosses)that change.

[BrianCR]

I can't understand your term "Full Tax".

Income Tax is calculated on your total income - however many sources of that income you have is immaterial - the more you earn the more Tax you pay.

Patrick

Sorry maybe not very precise

I thought you have to pay yourself a salary of 50.000baht (or pay the tax for this amount) and then you can work as MD in your own company and get a work permit for it.

So what if he already pays this tax for his employed work, does that mean he only has to pay tax on the actual income that is generated with the company?

You don't pay yourself. Your company pays you, so your company pays tax.

100% correct, remember that a Company is a "Juristic Person" and has many rights under law

[HarryMilton]

I can't understand your term "Full Tax".

Income Tax is calculated on your total income - however many sources of that income you have is immaterial - the more you earn the more Tax you pay.

Patrick

Sorry maybe not very precise

I thought you have to pay yourself a salary of 50.000baht (or pay the tax for this amount) and then you can work as MD in your own company and get a work permit for it.

So what if he already pays this tax for his employed work, does that mean he only has to pay tax on the actual income that is generated with the company?

You don't pay yourself. Your company pays you, so your company pays tax.

Do you mean the company pays your salary so you pay your income tax but the company deducts it from your wages? So the company physically gives it to the tax authority but the employee actually pays it by deduction?

[Maestro]

Yes, that's exactly how it works. Look at it as monthly advance instalment payments for the income tax due for the current year. After the year is over, you submit the tax return, which perhaps your employer's accounting department fills out for you and you sign it, the revenue department calculates the amount of tax due for the year, and you get either a refund for overpayment or a bill for the balance due, as the case may be.

[p_brownstone]

No, it can be a Partnership Limited as opposed to A Company Limited (only requiring two directors or partners, 51% Thai 49% western). As for the 2 million baht you will still need this amount but, the actual amount can vary a little depending on where you register. Sorry I don't have any links all my knowledge is from 33 years practical experience

Doesnt the 4 Thai employee rule per WP apply under a Partnership limited apply as well ?

Yes, all other conditions remain the same and you'll still need Thai employees it's just the number of Directors (bosses)that change.

Don't confuse Directors with Partners or Shareholders.

A Limited Company must have a minimum of 3 Shareholders but may have as little as one Director - or as many as you wish.

Patrick

[shafty]

No, it can be a Partnership Limited as opposed to A Company Limited (only requiring two directors or partners, 51% Thai 49% western). As for the 2 million baht you will still need this amount but, the actual amount can vary a little depending on where you register. Sorry I don't have any links all my knowledge is from 33 years practical experience

Doesnt the 4 Thai employee rule per WP apply under a Partnership limited apply as well ?

Yes, all other conditions remain the same and you'll still need Thai employees it's just the number of Directors (bosses)that change.

That leads me to another question: I read an article about new foreigner restaurant that opened here and the 2 (farrang) owners said they were not able to hire 8 Thais for their small restaurant and that is why they now have to go to the border every 90 (!) days!?!?

Does that mean it is possible to make a company and hire less than 4 Thai per foreigner if you don't require an extension?

I never heard anything that you can do this but just in case, what would that mean for the situation I described?

Edited May 7, 2013 by shafty

[FritsSikkink]

I can't understand your term "Full Tax".

Income Tax is calculated on your total income - however many sources of that income you have is immaterial - the more you earn the more Tax you pay.

Patrick

Sorry maybe not very precise

I thought you have to pay yourself a salary of 50.000baht (or pay the tax for this amount) and then you can work as MD in your own company and get a work permit for it.

So what if he already pays this tax for his employed work, does that mean he only has to pay tax on the actual income that is generated with the company?

You don't pay yourself. Your company pays you, so your company pays tax.

Do you mean the company pays your salary so you pay your income tax but the company deducts it from your wages? So the company physically gives it to the tax authority but the employee actually pays it by deduction?

Yes