Company For Work Permit

[mickymazda]

I've searched these forums but not found quite the answers I'm looking for - so here goes.

I'm an Australian non-resident currently working in the Middle East. I've been offered a job in Thailand by an Aussie company, consulting with their distributors in SE Asia. I will be based in Thailand with odd trips to SIN and KUL. I understand I need a work permit to work in Thailand, but my company is Aussie based with no office in Thailand and therefore no ability to get me a WP. The solution that has presented itself is that I set up a Thai company, which allows me 1 WP, and employ myself. Basically, my Aussie employer would transfer my salary to my Thai company bank a/c and my Thai company would pay almost all of that to myself as the sole employee (retaining enough to pay the various fees and charges associated with running the company).

My questions are as follows:

1. I've been assured that this is legal and commonplace. Is anyone out there doing this same thing who can confirm it's all pukka.

2. I will pay Thai income tax, but my company should not show any significant profit and therefore shouldn't be liable for any company tax, VAT etc. Is this so?

3. Ballpark figures, what should I expect to pay for an accountant to do my personal and company tax returne.

4. I've been told by the consultunt that this procedure is purely routine - but is he glossing over any significant areas that may trip me up?

Any responses from Aussies in the same situation as me will be generously rewarded with beer when I arrive in Bkk.

Mike

[Sunbelt Asia]

1. I've been assured that this is legal and commonplace. Is anyone out there doing this same thing who can confirm it's all pukka.

We have a number of clients doing this. Some are the employer who will set up a branch office and obtain a Foreign Business License. Other employers make the employees do a Thai limited company.

2. I will pay Thai income tax, but my company should not show any significant profit and therefore shouldn't be liable for any company tax, VAT etc. Is this so?

You still will need to file on a monthly basis. Personal tax and Vat. Also the Half year report and annual audit.

3. Ballpark figures, what should I expect to pay for an accountant to do my personal and company tax returne.

2,500 Baht per month

4. I've been told by the consultunt that this procedure is purely routine - but is he glossing over any significant areas that may trip me up?

Most significant which I'm sure the Consultant would need to go over would be your Thai partners required for the 51% of the shares unless he has you applying for a Foreign Business License. How if it is a 51/49 company, how the Thais cannot be nominees. The Thais have to pay for their shares with cash or non-cash assets. The government is looking at how companies are set up with Thai investors and it has to pass their eagle eye.

www.sunbeltasiagroup.com

[steveromagnino]

I've searched these forums but not found quite the answers I'm looking for - so here goes.

I'm an Australian non-resident currently working in the Middle East. I've been offered a job in Thailand by an Aussie company, consulting with their distributors in SE Asia. I will be based in Thailand with odd trips to SIN and KUL. I understand I need a work permit to work in Thailand, but my company is Aussie based with no office in Thailand and therefore no ability to get me a WP. The solution that has presented itself is that I set up a Thai company, which allows me 1 WP, and employ myself. Basically, my Aussie employer would transfer my salary to my Thai company bank a/c and my Thai company would pay almost all of that to myself as the sole employee (retaining enough to pay the various fees and charges associated with running the company).

My questions are as follows:

1. I've been assured that this is legal and commonplace. Is anyone out there doing this same thing who can confirm it's all pukka.

2. I will pay Thai income tax, but my company should not show any significant profit and therefore shouldn't be liable for any company tax, VAT etc. Is this so?

3. Ballpark figures, what should I expect to pay for an accountant to do my personal and company tax returne.

4. I've been told by the consultunt that this procedure is purely routine - but is he glossing over any significant areas that may trip me up?

Any responses from Aussies in the same situation as me will be generously rewarded with beer when I arrive in Bkk.

Mike

I am like an Aussie, only not a convict, which would make me a Kiwi. Although having Thai blood, I don't carry a Thai passport, but am in a vaguely similar situation to yourself.

1. You can set up your own company; will be owned 49% by you and 51% by Thai shareholders, and from Aug 15 onward will need to show that the Thai shareholders have come up with their share themselves/evidence of money. Can have voting/non voting stock to ensure control; min 2m baht start up capital. You will need someone you can trust here as the Thai shareholder; a lawyer can help you with that e.g. sunbelt, however the requirement for evidence of funds is new; not sure what happens there. If you know a THai person, maybe they can assist

2. You can get a work permit as a consultant, with 1 employee and then not need to do visa runs, or with no employees then you will need to reenter every 90 days

3. You will need an office, can get a serviced office here for about 3,000b a month; or more for a nicer place

4. Will need an accountant, probably will run about 2500b a month, plus a sum for annual returns; my guess is you actually will have to do bi-annual company return and annual personal return; probably a total of 50,000b a year for that

5. Assume 50,000b to set it up - Sunbelt will do you right, even despite your obviously checkered past as an Australian

6. Run all your personal expenses to your company then to reduce tax; car, accomodation, phone etc - should end up paying less tax here than Aussie if Aussie is anything like Neuw Zuelund.

7. Learn to speak english properly, and you may get a reduced rate

[mickymazda]

Thanks very much for the info (if I can trust the word of a Kiwi ) I'm ducking over to Bangkok this week for a recce and will meet up with Sunbelt.

Cheers again mate.

I've searched these forums but not found quite the answers I'm looking for - so here goes.

I'm an Australian non-resident currently working in the Middle East. I've been offered a job in Thailand by an Aussie company, consulting with their distributors in SE Asia. I will be based in Thailand with odd trips to SIN and KUL. I understand I need a work permit to work in Thailand, but my company is Aussie based with no office in Thailand and therefore no ability to get me a WP. The solution that has presented itself is that I set up a Thai company, which allows me 1 WP, and employ myself. Basically, my Aussie employer would transfer my salary to my Thai company bank a/c and my Thai company would pay almost all of that to myself as the sole employee (retaining enough to pay the various fees and charges associated with running the company).

My questions are as follows:

1. I've been assured that this is legal and commonplace. Is anyone out there doing this same thing who can confirm it's all pukka.

2. I will pay Thai income tax, but my company should not show any significant profit and therefore shouldn't be liable for any company tax, VAT etc. Is this so?

3. Ballpark figures, what should I expect to pay for an accountant to do my personal and company tax returne.

4. I've been told by the consultunt that this procedure is purely routine - but is he glossing over any significant areas that may trip me up?

Any responses from Aussies in the same situation as me will be generously rewarded with beer when I arrive in Bkk.

Mike

I am like an Aussie, only not a convict, which would make me a Kiwi. Although having Thai blood, I don't carry a Thai passport, but am in a vaguely similar situation to yourself.

1. You can set up your own company; will be owned 49% by you and 51% by Thai shareholders, and from Aug 15 onward will need to show that the Thai shareholders have come up with their share themselves/evidence of money. Can have voting/non voting stock to ensure control; min 2m baht start up capital. You will need someone you can trust here as the Thai shareholder; a lawyer can help you with that e.g. sunbelt, however the requirement for evidence of funds is new; not sure what happens there. If you know a THai person, maybe they can assist

2. You can get a work permit as a consultant, with 1 employee and then not need to do visa runs, or with no employees then you will need to reenter every 90 days

3. You will need an office, can get a serviced office here for about 3,000b a month; or more for a nicer place

4. Will need an accountant, probably will run about 2500b a month, plus a sum for annual returns; my guess is you actually will have to do bi-annual company return and annual personal return; probably a total of 50,000b a year for that

5. Assume 50,000b to set it up - Sunbelt will do you right, even despite your obviously checkered past as an Australian

6. Run all your personal expenses to your company then to reduce tax; car, accomodation, phone etc - should end up paying less tax here than Aussie if Aussie is anything like Neuw Zuelund.

7. Learn to speak english properly, and you may get a reduced rate