Is that doable? :

I deposit 2,000,000 Baht and set up a company together with a Thai partner (he gets 51%, I get 49%)

After paying all the expenses (4 Thai workers, accountant etc..) the company will pay my salary which will be most of the money left as profit so the company will have no/hardly any profit left.

Meaning, if the company made 1,000,000 Baht in the end of the year and 200,000 are the expenses (workers, accountant..), I will take 800,000 Baht salary and pay the personal tax on it.

This will give me the Work permit which is basically all I need to get from this whole process.

Question is, can a company in Thailand be non-profitable or let's say have a profit of 5000 baht in the end of the year?

Thank you for your assistance.

Numerous Bar Owners should be able to answer this?

Starting a company with the plan to lose money? Now I have heard everything. It seems Thailand is full of people with "unusual" investment ideas.

As an alternative, you could just get the 2 million baht in cash and hand it out to random people in the street. At least that way less of it will end up in the hands of this dispicable government.

Why not just get a Thailand Elite card with 5 year visa, or do you need to work as well?

Why not just get a Thailand Elite card with 5 year visa, or do you need to work as well?

Yup, I am earning an equivalent amount to 1 mil Baht/year and I am paying tax on it with my current company so basically will just be paying tax in Thailand instead of in my own country.

So, is that possible to do? I mean wouldn't the authorities care that all the company's profit is going to the falang owner? is there a min that the company must make so it will produce tax?

If that's possible that is the ultimate solution for me (and for any freelancer who pays tax for his income elsewhere)

If not possible then I will most likely go for the Thai Elite card and continue to pay tax in my current company.

Why not just get a Thailand Elite card with 5 year visa, or do you need to work as well?

Yup, I am earning an equivalent amount to 1 mil Baht/year and I am paying tax on it with my current company so basically will just be paying tax in Thailand instead of in my own country.

So, is that possible to do? I mean wouldn't the authorities care that all the company's profit is going to the falang owner? is there a min that the company must make so it will produce tax?

If that's possible that is the ultimate solution for me (and for any freelancer who pays tax for his income elsewhere)

If not possible then I will most likely go for the Thai Elite card and continue to pay tax in my current company.

A point to consider, is that owning a company, or having a work permit does not entitle you to stay in Thailand. It would let you get a visa, a single entry "B", or perhaps a one year multi-entry "B" Visa. At some point, to get a one year, extension of permission to stay, I think you will have to show a profit.

Loads of companies that just own a house and don't make any money exist.

Only a problem if one day the authorities decide to turn their malevolent gaze that way.

So far, they haven't as the real estate market is just too important.

So, enforcing existing laws on the books intended to limit abuse is, somehow, malevolent?

Loads of companies run at a loss, it's called tax avoidance! Do yourself a favour and speak to a good accountant.

Loads of companies run at a loss, it's called tax avoidance! Do yourself a favour and speak to a good accountant.

I prefer the term "Tax Minimization" rather than the term "Tax Avoidance".

Yes that's do-able and shouldn't cause any problems as long as all your other tax affairs are in order, i.e deducting WHT from suppliers where appropriate and relevant, correctly accounting for VAT if applicable, etc

Bear in mind though there are certain profit levels before salary and hence tax where this may not necessarily be the most tax efficient way of doing things. The highest level of personal income tax is higher than the corporate tax for small businesses. At your level though the personal income tax is lower than corporate tax.

Stay away from Thai Elite.

Cheers

Fletch

Loads of companies run at a loss, it's called tax avoidance! Do yourself a favour and speak to a good accountant.

I prefer the term "Tax Minimization" rather than the term "Tax Avoidance".

You must be either an accountant or banker then.

This article might be useful to you: http://www.retire-asia.com/thaibiz.shtml

Proposed changes to the Foreign Business Act 2014 are off the cards at least according the the UK Foreign Office: https://www.gov.uk/government/publications/thailand-foreign-business-act/thailand-foreign-business-act

Loads of companies that just own a house and don't make any money exist.

Only a problem if one day the authorities decide to turn their malevolent gaze that way.

So far, they haven't as the real estate market is just too important.

------------------------------

Be careful.

Even if your fully legit, the Thais have been lately turning their gaze to companies that have assets in Thailand, but do not show a profit.

They are looking for possible money laundering operations..... turning tainted money into clean money,

Not even suggesting you have anything to do with such a thing ..... just telling you a mention of looking at such companies was mentioned in the Thai English newspapers less than a month ago.

In other words, be careful.

Loads of companies that just own a house and don't make any money exist.

Only a problem if one day the authorities decide to turn their malevolent gaze that way.

So far, they haven't as the real estate market is just too important.

------------------------------

Be careful.

Even if your fully legit, the Thais have been lately turning their gaze to companies that have assets in Thailand, but do not show a profit.

They are looking for possible money laundering operations..... turning tainted money into clean money,

Not even suggesting you have anything to do with such a thing ..... just telling you a mention of looking at such companies was mentioned in the Thai English newspapers less than a month ago.

In other words, be careful.

ן think that owning a house which doesn't generate any income is different from opening a company which generate income and work for the workers who all pay their taxes in accordance to the law.

Thx for all your comments!

No problem for the first few years, but after 3 years you will start to have questions asked when renewing work permit if not making a profit.

Often will have to increase your registered capital (liability) to please the officers so better to show at least a small profit on the books.

the 200,000 baht would seem to be doing a lot, paying 4 staff salary and government charges, accountant, company fees etc. say take off 50,000 for fees etc, that leaves 150,000 for 4 staff thats 37,500 each per year, thats 721 baht per week.