Things That Can Only Happen in Asia

[Old Croc]

It's nice, apparently, living in Phuket. My friends Simon and Belle have been there a few years now, working on their internet-based business while enjoying the affordability and never-a-dull-moment interest of living in south-east Asia.

They've got a comfortable little house. They've also got great food, given they eat out at the street markets pretty much every night. There's a guy there they call "Chicken Broth Man" who's basically being kept in business by the nightly patronage of Simon and Belle.

The easiest way for people like my friends to stay so long in Thailand without going through the hassle of a work permit is to get an education visa, which stipulates the holders should be in Thailand to learn - and for most people this involves study of the Thai language.

Read more: http://www.smh.com.au/travel/blogs/the-backpacker/things-that-can-only-happen-in-asia-20140401-35v46.html#ixzz2xbcVuhVD

http://www.watoday.com.au/travel/blogs/the-backpacker/things-that-can-only-happen-in-asia-20140401-35v46.html

[Lantern]

Gotta love Thailand

[Konini]

I read this a little while ago and was going to sign up to leave a comment, but ran out of time. I might still do so if I get time. Amusing as it may be for some, people like his friends actually make it harder for the rest of those genuinely here on education visa's as it's because of people cheating the system that immigration crack down. Also, in the long run, people on other kinds of visa are given more attention than they deserve and the obligations for staying here will only get harder because of the few that abuse their privilege (and yes, it is a privilege for another country to let you live in it without contributing to the income tax system).

Ben Groundwater is a moron, most of his articles are total drivel and beyond reading (I don't usually bother clicking on them, got this from a headline in The Age and didn't notice it was 'The Backpacker). I know that his readers won't think it so amusing to read about foreigners in Australia on the guise of studying who aren't going to school and being in the country without having gone through the arduous hoops prospective residents who are not studying are made to go through. The application process to get into Aus gets harder each year, and it was hard enough in 1987. Occasionally a fake school gets closed down, is headline news and there is chest-beating outrage in both the letter's page and on talk-back radio.

I might just do it as a letter to the editor, and while I'm usually a pleasant person who wishes nobody ill-will, I hope they get hauled in for a language test and deported. If you're going to do that kind of thing, have the grace not to brag about it, especially to journalists. I hope Thailand doesn't get a run of Aussie's who have read his article following in their footsteps.

<Rant over>

[stickylies]

blah blah... some stupid article... blah blah... what a clown that author.

edit: i agree with Konini

but the problem is not the people abusing the ED system but the schools and immigration officers allowing it.

some years ago i had an unsolicited visit from some chick who came to inform me about ED visas ... she heard from my landlord i had been doing quite some visa runs and therefore offered her "assistance" ....

[robblok]

I have to say that for people with an internet company its real hard to employ 4 Thais to get a workpermit. That is just crazy. Without that things would be much easier. Most have no problem paying taxes just with the 4 ppl to employ for an internet company that has no clients in Thailand.

[SOTIRIOS]

.......point being.....???

[Konini]

I have to say that for people with an internet company its real hard to employ 4 Thais to get a workpermit. That is just crazy. Without that things would be much easier. Most have no problem paying taxes just with the 4 ppl to employ for an internet company that has no clients in Thailand.

Sorry, I was ranting and didn't make it clear: my point about people not paying income tax wasn't aimed at the two people cheating the system, but that most expats here don't work and are not compelled to contribute to the tax system. Anyone who retires to Australia is paying income tax, or at least lodging to assess whether they earn enough to, and if you're not earning enough you're not going to get the visa, although if you have already had to pay income tax in your home country you get credit for it and only pay the difference (if higher), but are pushed to rearrange your affairs so you are paying the tax in Australia as you are getting the benefits of living there. UK would be the same I imagine. In neither country would the government just leave it to an honour system; to get the credit for tax paid overseas you have to provide a copy of the tax documents for the country you have paid it as proof.

I have a rental property in my name in England and the first year got the paperwork sent by me from the UK Inland Revenue and had to submit a copy of my Australian tax return. I declined to do this, as my full earnings are nothing to do with them, but completed the form and had my accountant send a letter and an extract of the relevant page of my return along with a Statutory Declaration (his idea) which satisfied them. He still gets a letter every year from the UK asking him to declare that the income has been included on my Australian return, That, I expected, but what neither of us expected was for the ATO to check with the Inland Revenue for 10 years after that first one that I had no income from England other than what I declared (account told me it was disclosed on something they sent him, but either they stopped telling him a few years ago or they finally trust me and don't check any more). The only conclusion to draw from this is that there must have been some initial correspondence between the two taxation departments about me. The English office knew about the income. They knew that because I told them. I opened a new bank account without my husband's name on when the property was purchased for the rent and the account paid interest. I believe the bank must have told them I was a foreign resident earning interest as the letter I got mentioned interest. I, honestly, told them I also had rental income but both were taxed in Australia. My question has long been why did the Australian office start checking up with the English. I mean, if I were being dishonest and cheating, I wouldn't have declared any of it would I to either of them? They knew of course, it's on my tax return as overseas income, but they checked I didn't have more? If our accountant weren't so straight down the line I might not believe him.

My point was that most of us, the majority being retirees are here legally and not contributing to the Thai taxman. Not many countries would let you do that, Malaysia sites it as one of the perks of taking out M2H, but few others would allow it.

Edit: Clarity

[tetleythedog]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I have to say that for people with an internet company its real hard to employ 4 Thais to get a workpermit. That is just crazy. Without that things would be much easier. Most have no problem paying taxes just with the 4 ppl to employ for an internet company that has no clients in Thailand.

didn't know you could work on an Ed visa ...................maybe they'll get a visit soon....................

[sirchai]

How many of them are doing some questionable "online" business? Aren't there already too many of them here?

Call and other scam centers and the OP does definitely make jokes about those who're paying taxes and living here within the law.

Just in my personal opinion, an ED visa is to study, not to make a lot of money, without paying tax.

As already mentioned, those guys give is a hard time who're doing nothing wrong.

[wym]

Sorry, I was ranting and didn't make it clear: my point about people not paying income tax wasn't aimed at the two people cheating the system, but that most expats here don't work and are not compelled to contribute to the tax system.

-----------

My point was that most of us, the majority being retirees are here legally and not contributing to the Thai taxman. Not many countries would let you do that, Malaysia sites it as one of the perks of taking out M2H, but few others would allow it.

The vast majority of tax revenues here are via VAT, a very small percentage of Thais contribute much income tax, least of all the wealthy here.

Every tourist/visitor/retiree or those working "illegally" over the Internet are contributing much more to the tax base than the average VILLAGE full of average Thais.

The Thai government is very consciously allowing the ED visa to be abused, and very consciously ignoring the long-obvious and growing trend of remote workers and net entrepreneurs to settle here long-term.

Because in fact they're not doing anything wrong, it's a win-win situation for the Kingdom and much more preferable to the usual sexpat scenario socially.

The only time I've heard of people cracking down is when they are actually operating offices, openly hiring foreigners, not paying off the appropriate authorities and generally being stupid.

Let the Thais worry about these victimless "crimes" not our business to get on our high horses and bemoan the "fact" these people are somehow giving the rest of us a "bad name" - hah!

[Tchooptip]

In fact, their school attendance last year was the grand total of no classes. None. Nada. Their grasp of Thai still doesn't extend much past "sawadee kap".

How on earth an honest person could be proud to write that ? Shame on you mr. Backpacker

[smotherb]

"My point was that most of us, the majority being retirees are here legally and not contributing to the Thai taxman. Not many countries would let you do that, Malaysia sites it as one of the perks of taking out M2H, but few others would allow it. " Konini, this forum.

Many countries do not levy taxes on retirees for income earned elsewhere, which includes retirement income. The rationale, of course, is the cash flow retirees bring into the local economy and, for the most part, the elders are law-abiding.

[johnmarhall]

as long as there is money to be made it will keep going on

[charlieboz]

The comments section was hilarious; people saying Australia is just as corrupt as Thailand (because we have corruption in Australia therefore it must be at the same level).

[captnhoy]

The comments section was hilarious; people saying Australia is just as corrupt as Thailand (because we have corruption in Australia therefore it must be at the same level).

Yeah, I used to think that about America too. You hardly see a glimpse of it in your daily life because it is SO much bigger than that.

[mogandave]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I have to say that for people with an internet company its real hard to employ 4 Thais to get a workpermit. That is just crazy. Without that things would be much easier. Most have no problem paying taxes just with the 4 ppl to employ for an internet company that has no clients in Thailand.

didn't know you could work on an Ed visa ...................maybe they'll get a visit soon....................

So they would gladly give up 50% of their income to work here legally?

I think not.

What does it cost to hire four people?

[robblok]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

I have to say that for people with an internet company its real hard to employ 4 Thais to get a workpermit. That is just crazy. Without that things would be much easier. Most have no problem paying taxes just with the 4 ppl to employ for an internet company that has no clients in Thailand.

didn't know you could work on an Ed visa ...................maybe they'll get a visit soon....................

So they would gladly give up 50% of their income to work here legally?

I think not.

What does it cost to hire four people?

50% ?

You probably have no idea bout the Thai tax structure, and to hire 4 people you cant employ because your not doing business in Thailand is crazy. That would cost you around 40k a month extra.

Many people i know with internet companies would love to pay taxes if they work here legally but not the 4 Thais, plus they would love to own 100% of their own company.

Reason why people would be willing to pay is that if you pay you could go for permanent residency and other things because for that you need to pay tax.