Random RCBO Trip...What Next?

[Nepal4me]

I'm an investor in a company which is not profitable. If we lay off some of our staff, could somebody help me understand how many months salary do we have to pay per employee.

Also, does it matter if they've been there 5 years or 1 year? Is the number of months the same?

[Nepal4me]

Forgot to mention we are a Bangkok based company. CEO is a falang with work permit etc, staff are all Thai.

[pookiki]

Review the Thai Labour Code. Available online. Thai Ministry of Labour.

[jdinasia]

Yes it matters how long they worked for you. As stated check the ministry of labor website.

[Nepal4me]

Thanks very much for pointing me to the Thai labour code. I reviewed and found everything I was looking for.

Maybe you could assist me a bit further.

Since we are not profitable, could our CEO take a zero salary? As of now he draws a salary of about 200,000 baht/month so he pays about 55,000 baht in taxes. If he just lived on his savings until profitability and took zero salary would that be kosher with the Thai tax department or other concerned body? Would he be in jeopardy of losing his work permit or PR status?

Or would there be another web site I could review?

[Soutpeel]

Thanks very much for pointing me to the Thai labour code. I reviewed and found everything I was looking for.

Maybe you could assist me a bit further.

Since we are not profitable, could our CEO take a zero salary? As of now he draws a salary of about 200,000 baht/month so he pays about 55,000 baht in taxes. If he just lived on his savings until profitability and took zero salary would that be kosher with the Thai tax department or other concerned body? Would he be in jeopardy of losing his work permit or PR status?

Or would there be another web site I could review?

The CEO would be able to get/have a WP without a salary being paid is not a requirement you state the CEO is PR ? Is this a real permanent resident not someone on an annual "visa"

[Nepal4me]

The CEO would be able to get/have a WP without a salary being paid is not a requirement you state the CEO is PR ? Is this a real permanent resident not someone on an annual "visa"

The CEO has a work permit and has had permanent residency for about 10 years already. My thoughts are for us to manage the cash differently. i.e. if he draws no salary, we save 60,000 baht per month in taxes. Obviously he has to agree to live on his other source of income but that is not really germane to this discussion.

You state above, and I think your meaning is salary has nothing to do with PR or work permit status. So if we did lower his salary to zero, that wouldn't raise a flag with the tax authorities. Is that correct? I think this type of question is not one that is easy to get a clear answer to via google as it's specific and probably unusual.

If you have any further words of wisdom on this, I would appreciate it.

[rheinwiese]

http://www.boi.go.th/tir/issue/200506_16_6/14.htm

[WonnabeBiker]

You gotta terminate in synch with the payment cycle. Then there will be notice period (see their contracts) and severance.

[Nepal4me]

You gotta terminate in synch with the payment cycle. Then there will be notice period (see their contracts) and severance.

Alas, I don't know what this means either.

The idea is to reduce our expenses. The question is can our CEO take zero salary and live off his savings? Will this cause a problem with the tax authorities? We have been losing money for 7 years and although our sales are high, our expenses are too. This is one step in trying to reduce our expenses. I just don't want us to get audited (not that we have anything to hide, just that being audited is a pain in the butt) or wave any red flag to anybody.