Working in Thailand as a freelancer

[EternalExile]

Hi all,

I am currently negotiating with a developer that intends to build a resort in the South of Thailand for a job as a Commercial Project Manager. The job is supposed to start early next year. I was wondering if anybody knows here if there would be an opportunity be working as a freelancer kind of person. I could establish a company in Hong Kong as a contractual partner. Is this kind of arrangement possible? If yes, what kind of limits would I need to consider, like working days onshore and the like?

Thanks for advice

[Bredbury Blue]

Not sure of the labour laws for people who visit thailand for short business purposes like attend a meeting, but if you will be working in Thailand you will need a thai company to provide a Work Permit for you as employee, pay withholding tax, etc. Wouldn't it be better for the developer to employ you as an employee for the duration of the project?

[EternalExile]

That would be the other option. I am not quite clear about how to arrange this. Right now I am trying to consider all the options - benefit might be that the income tax/corporate tax in HK is considerably lower than in Thailand From previous assignments I know that the threshold for being a "tax citizen" is half year during a year in most countries. Does this apply to Thailand as well? Are there any other requirements other than a work visa?

[Gutenberg]

You work as a project manager on-site in Thailand? Then you should really get a work permit from that employer.

If you are mostly doing your work outside of Thailand and just visiting each week for a meeting, you may not need the work permit.

[scorecard]

That would be the other option. I am not quite clear about how to arrange this. Right now I am trying to consider all the options - benefit might be that the income tax/corporate tax in HK is considerably lower than in Thailand From previous assignments I know that the threshold for being a "tax citizen" is half year during a year in most countries. Does this apply to Thailand as well? Are there any other requirements other than a work visa?

Some points to understand - the difference (in Thailand) between a visa and a work permit:

- In essence there is no such thing specifically as a work visa. Visa basically means you have gained an approval to physically be in Thailand in a certain visa category for a stated period of time. Of itself a visa is NOT permission to work / it is NOT a work permit.

- Work permit (WP) means you have gained approval from the Thai labour ministry to work (meaning they have issued a small book labelled Work Permit) in the employment of a specific Thai properly registered company, in a specific job (the specific job must be shown in the application for the WP) and the job must be in a category / type of work which is NOT banned for foreigners*. The WP when issued will also state the address at which you will work. You can request that there be several addresses shown in the WP book but you cannot request 'anything' or 'anywhere'.

The Thai labour ministry does spot checks and it's very inadvisable to get caught doing different work / working at a location not approved in the work permit book.

The Thai company needs to have a certain ratio of Thai employees for every foreign employee to be able to even lodge such an application for a WP, and when you / the employer lodge the application for a WP you must provide a copy of a signed contract of employment with your name.

The work permit cannot be used in a freelance approach and cannot be transferred to another person. WPs are generally for one year but renewable if your employer is willing to continue the arrangement. There is a specific renewal process, at the local labour ministry office, which includes full proof that your personal Thai taxes have been paid and cleared. Taxes paid in HK would not satisfy this requirement.

The WP is not a visa. If the WP is approved this gives you the documentation needed to now apply for a certain type of visa which give you approval to physically be in Thailand for the same period of time as the dates on the WP.

The Thai labour ministry, which issues WPs, is not interested in arrangements with HK companies, your employer must be a Thai company.

*There is an official list of types of work which are reserved for Thai people only (one example - labouring). You can see this list in the pinned topics at the very start of the ThaiVisa site.

Edited November 4, 2015 by scorecard

[EternalExile]

Awesome! Understood. Sounds pretty protectionist... and complicated - and makes sense. Basically means that all three components, labour, immigration and tax leave very little wiggle room to arrange. So I cannot consider the freelance option any more. Lets see how my employer can get that arranged

Thanks a lot!