Advice On Business Visa, Tax Etc.

[lynchy]

I'm looking for some advice on re-location to Thailand from the UK.

I'm a Service Engineer for a relatively small Electronics company involved in the Marine and LNG (Liquid Natura Gas) markets and spend alot of my time overseas on fairly short Service/Commisioning Visits worldwide.

At the moment I'm in discussions with my company (I'm an employee) to base myself in Thailand, working from there, covering everywhere from Australia, Japan, back to the Middle East. I reckon there's a good chance they'll go for it as it could be adavantageous to them in many respects. I'm preparing a document at the moment and this site is helping with that.

My plan is to initially get a 1 year business visa . The Thai Consulate in Hull (UK) seemed to think I wouldn't have a problem getting a 1 year multiple visit business visa and is the most appropriate in my situation.

I'm unsure of the Tax situation and also about setting up a Bank account. I had thought about setting up a business account in Thailand into which my company would deposit some or all of my Salary/Allowances etc and if I had to pay Tax on this and if so what rate. I'm not looking to increase my net salary, so if there were some Tax saving to be made it would be a good selling point to my company. I would prefer a salary plus allowances but I might have to go for a day rate.

Like I said initially I would just be basing myself in Thailand but in the long wrong we might want want to set up a regional office or company to service my companies products and represent Asia, hire local staff etc. My employers are pretty flexible when it comes to this kind of thing and are fairly small. The onus would be on myself to sort this out and offer them a package.

Will be over again in the middle of December for a month so hopefully know what's happening by then and start getting the move underway with a bit of luck.

Would appreciate any advice on the Tax issues, business account and in the longer wrong setting up an independent company or regional office for my present company.

Thanks

Lynchy

[Cyberstar]

Business accounts are set up by registered businesses - companies and such. Employees can only set up personal accounts.

If you want to work from Thailand (legally, taxpaying) you'll need a workpermit. You can't get a workpermit unless you're employed by an employer, legally registered as such in Thailand, and fullfilling the set of laws, rules, and regulations required to be fullfilled before the employer qualifies to employ a foreigner.

(Just a few remarks in the passing).

[Maizefarmer]

CYBERSTAR - not strictly correct that you need to be employed by a company to get a WP - you can get a work permitt for yourself so long as you set yourself up the right way - which yes, in the sense that you need a company you will need to setup yourself up under some or other legal entity - sole proprierter or consultant been 2 of the options that you can do yourself.

The point is not so much that you don't need a company (or beter put as a legal entity) on which point however one looks at it is required, but that you can get a work permitt wmploying yourself so to speak.

This is more to add to what you said - as opposed to correcting it.

Tim

- the operative words "go about it the right way" i.e. get one of the specialists to guide you through the process and paperwork minefield.

[Cyberstar]

... Setting oneself up as a consultant would mean to form a company, that employes one as a consultant, right? ...

[lukamar]

... Setting oneself up as a consultant would mean to form a company, that employes one as a consultant, right? ...

Didn't the designation "Consultant" get scrapped for a WP with the Oct 1 shakeup? I may be wrong on this.

You should contact Sunbelt on this one as you could end up in a bucket of s**t, if you do not have everything setup absolutely correct.

[smilingjim]

This is a complex issue with so many different things to consider:

1) Are you planning to leave the UK permanently?

2) How much time will you spend in each country?

3) How much work will you do in each country?

4) How clients should be invoiced for work done and who by - you or your employer?

5) Make Thailand a local office/regional office/representative office.

6) Set up a Thai company?

These are just some of the things to think about.

From a taxation point of view you need to consider which country you will be liable to tax in - normal rule of more than 6 months being where you are assessable for all income. In your situation you may be able to be non-resident in any country (leass than 3 months in each)!

You are in the fortunate position of having a flexible employer/situation so can plan to your best advantage.

Would suggest you get 1 year or the new 3 year (embassy in London only) NON IMM B multiple entry and sort out your options whilst in the UK and when you are over here.

Speak to a tax specialist about your tax issues a(PM me if you want more advice)nd a Thai lawyer/business specialist about options for business set up here that is best for you in your situation.

Cheers

Jim

[Sunbelt Asia]

I'm looking for some advice on re-location to Thailand from the UK.

I'm a Service Engineer for a relatively small Electronics company involved in the Marine and LNG (Liquid Natura Gas) markets and spend alot of my time overseas on fairly short Service/Commisioning Visits worldwide.

At the moment I'm in discussions with my company (I'm an employee) to base myself in Thailand, working from there, covering everywhere from Australia, Japan, back to the Middle East. I reckon there's a good chance they'll go for it as it could be adavantageous to them in many respects. I'm preparing a document at the moment and this site is helping with that.

My plan is to initially get a 1 year business visa . The Thai Consulate in Hull (UK) seemed to think I wouldn't have a problem getting a 1 year multiple visit business visa and is the most appropriate in my situation.

I'm unsure of the Tax situation and also about setting up a Bank account. I had thought about setting up a business account in Thailand into which my company would deposit some or all of my Salary/Allowances etc and if I had to pay Tax on this and if so what rate. I'm not looking to increase my net salary, so if there were some Tax saving to be made it would be a good selling point to my company. I would prefer a salary plus allowances but I might have to go for a day rate.

Like I said initially I would just be basing myself in Thailand but in the long wrong we might want want to set up a regional office or company to service my companies products and represent Asia, hire local staff etc. My employers are pretty flexible when it comes to this kind of thing and are fairly small. The onus would be on myself to sort this out and offer them a package.

Will be over again in the middle of December for a month so hopefully know what's happening by then and start getting the move underway with a bit of luck.

Would appreciate any advice on the Tax issues, business account and in the longer wrong setting up an independent company or regional office for my present company.

Thanks

Lynchy

The best way is a Regional Operating Headquarters if your company has the financial wherewithal and has 3 branches or subsidiaries

Requirements for a ROH

The ROH must be a Thai registered company or juristic partnership.

The ROH must provide "qualifying services." This includes management, technical and other support services, such as technical support, research and development and training to subsidiaries or branches in Thailand or elsewhere.

The ROH must have 10 million Baht minimum paid up capital.

The ROH must provide services to subsidiaries or branches in at least three countries.

At least 50% of the revenue of the ROH must be derived from foreign subsidiaries or branches. (For the first three years this is reduced to one third).

At least one person responsible for operating the Headquarters must be domiciled in Thailand.

Tax concessions

The ROH will pay 10% corporate tax instead of the usual rate of 30%: (1) on its income from qualifying services; (2) on net profits from royalties derived from R & D in Thailand; and (3) on interest from loans made to branches or subsidiaries, where the loan is made from borrowings.

No tax is payable on dividends received by the ROH from domestic or foreign subsidiaries.

No withholding tax on dividends paid by the ROH to foreign companies that do not carry on business in Thailand.

Depreciation is permitted at 25% for building costs in the acquisition year, with the balance to be depreciated over 20 years.

No personal income tax on income received by the ROH's expatriate employees for work performed outside Thailand. But such salaries will not be a deductible expense of the ROH or other subsidiaries that directly/ indirectly carry on business in Thailand.

15% flat rate personal income tax on salaries derived from employment by the ROH, subject to conditions. This concession will only apply for only four years.

Regional Operating Headquarters business" means a business of providing managerial, technical or the following supporting services to its associated enterprise or its domestic and foreign branches;

(1) General management, business planning and business co-ordination

(2) Procurement of raw materials and parts

(3) Research and develop products

(4) Supporting technical assistance

(5) Marketing strategy planning and sales promotion

(6) Human resource management and training in the region

(7) Financial advisory services

(8) Analyze and research on economics and investment

(9) Control and management of credit

(10) Any other services as stipulated by the Director-General of the Revenue Department

The second choice would be if they just have a single branch or affiliate in the region. This weould be a

Regional Office

A regional office may be set-up to direct the operation of the branches and affiliates of the head office in the region on behalf of the head office.

The regional office can coordinate and supervise the company's branches and its affiliated companies in the region on behalf of the head office. The regional office may provide these branches and affiliated companies with:

(1) product development

(2) research and development services

(3) advisory and management services

(4) financial management services

(5) training and personnel development services

(6) marketing control and sales promotion plans

Companies establishing regional offices are not required to be registered or incorporated as juristic persons in Thailand, and do not have to submit any financial statements to the Department of Commercial Registration. The Department will assist in customs clearance of the personal effects of transferred foreign staff and in their applications for further temporary stay in the Kingdom or change in visa type. Work Permits for aliens performing work in the regional office will be granted for up to 5 persons depending on necessity and volume of work in each particular case.

There are conditions to obtain a permit to establish a regional office. The regional office must not engage in any revenue generating activities. It must not make offers to sell or purchase goods or services nor negotiate or enter into business arrangements with any person in Thailand. Its expenditure shall be borne by the head office.

A permit to establish a regional office, valid for five years, can be granted after application to the Alien Business Section of the Department of Commercial Registration at the Ministry of Commerce.

When a permit to establish a regional office is issued, it may be subject to the following conditions:

The total debt financing used in the business shall not exceed seven times the

portion of the capital owned by shareholders or the owner of the business

The money used in the regional office shall be remitted from abroad and shall not be less than five million Baht. During the first year period, at least two million Baht must be remitted, at least half of which must be remitted within the first six months. Then, no less than one million Baht should be remitted each succeeding year until the full five million Baht has been transferred. Documents verifying this transfer must be presented to the Department of Commercial Registration. At least one person who is responsible for operating the regional office must be domiciled in Thailand.

The Director-General of the Department of Commercial Registration is also authorized to impose any conditions on a business permit granted under the rules.

The third choice would be a

Thai Limited Company

In order to set up a limited company in Thailand, the following procedures should be followed:

1/ Reservation of your Corporate Name

The name to be reserved must not be the same or similar to the name of any other companies. There are names that are not allowed and the name reservation guidelines of the Commercial Registration Department in the Ministry of Commerce need to be observed. The approved corporate name is valid for 30 days. No extension is allowed.

2/ File a Memorandum of Association

A Memorandum of Association must be filed with the Commercial Registration Department. This has to include the name of the company that has been successfully reserved, its business objectives, the capital to be registered, the province where the company will be located, and the names of the seven promoters. The capital information must include the number of shares and the value per share. At the time of formation, the authorized capital, although partly paid, must all be issued.

Although there are no minimum capital requirements, the amount of the capital should be of a respectable amount, and adequate for the business operation to function healthily. Yiou will need two million Baht register capital to obtain a work permit. ( One million Baht if married to a Thai) This can be cash or non-cash assets.

3/ Convene a Statutory Meeting

Once the share structure has been decided, a statutory meeting needs to be called, during which the bylaws and articles of incorporation are approved, the Board of Directors are nominated and an auditor selected. A minimum of 25% of the value of each subscribed share must be paid. 100% of 2 million Baht as you will be getting a work permit. Each individual shareholder may make this investment in the company by using either cash or non-cash assets.

4/ Registration

Within three months of the date of the Statutory Meeting, the directors must submit their application to establish the company.

5/ Tax Registration

Within 60 days of incorporation, or within 60 days of the start of operations, businesses liable for income tax must obtain a tax identity card and a number for the company from the Revenue Department. Business operators earning more than 1,800,000 baht per annum must register for VAT within 30 days of the date they reach that figure in sales.

Tax rates of the Personal Income Tax

Taxable Income Tax Rate (%)

0 - 100,000 (2004 onwards) Exempt - -

100,001 - 500,000 10 %

500,001 - 1,000,000 20 %

1,000,001 - 4,000,000 30 %

4,000,001 and over 37 %

The corporate income tax rate in Thailand is 30% on net profit. However, the rates is lower if you are a SME (companies with paid-up capital less than 5 million Baht at the end of each accounting period.)

- Net profit not exceeding 1 million Baht is 15%

- Net profit over 1 million Baht but not exceeding 3 million Baht is 25%

- Net profit exceeding 3 million Baht is 30%

Sunbelt 's experienced advisors can help with all aspects of registering and operating a business in Thailand , making sure that you and your business are licensed, documented and fully legal in every way. We provide professional, accurate legal assistance at the lowest possible fees...

Sunbelt Asia Website

Didn't the designation "Consultant" get scrapped for a WP with the Oct 1 shakeup? I may be wrong on this.

Bad info from the "Pattaya Today" who reported this. No change with the term " Consultant" when applying for a work permit.

You should contact Sunbelt on this one as you could end up in a bucket of s**t, if you do not have everything setup absolutely correct.

Thank you for mentioning us.

Setting oneself up as a consultant would mean to form a company, that employes one as a consultant, right? ...

No Thai employees are needed to form a consultant business and have a work permit. If you want a extension of stay based on business, Immigration requires four Thai employees. If the OP gets a one year multi entry visa from a Embassy/ Consulate this will not have any impact, as he will not need to go to Immigration.

not strictly correct that you need to be employed by a company to get a WP - you can get a work permitt for yourself so long as you set yourself up the right way - which yes, in the sense that you need a company you will need to setup yourself up under some or other legal entity - sole proprierter or consultant been 2 of the options that you can do yourself.

You as a foreigner are not allowed to be a sole proprietor, unless you are an American and form under the Amity Treaty.

http://www.sunbeltasiagroup.com

[lynchy]

This is a complex issue with so many different things to consider:

1) Are you planning to leave the UK permanently?

2) How much time will you spend in each country?

3) How much work will you do in each country?

4) How clients should be invoiced for work done and who by - you or your employer?

5) Make Thailand a local office/regional office/representative office.

6) Set up a Thai company?

These are just some of the things to think about.

From a taxation point of view you need to consider which country you will be liable to tax in - normal rule of more than 6 months being where you are assessable for all income. In your situation you may be able to be non-resident in any country (leass than 3 months in each)!

You are in the fortunate position of having a flexible employer/situation so can plan to your best advantage.

Would suggest you get 1 year or the new 3 year (embassy in London only) NON IMM B multiple entry and sort out your options whilst in the UK and when you are over here.

Speak to a tax specialist about your tax issues a(PM me if you want more advice)nd a Thai lawyer/business specialist about options for business set up here that is best for you in your situation.

Cheers

Jim

Thanks alot for all your responces. There's alot to digest. I think I'll have to get in touch with Sunbelt to see how to move forward.

Like I said initially I'm just planning to get a 1 year business visa to see how it goes and initially just need to know what the tax situation is.

In responce to smilingjim:

1) Are you planning to leave the UK permanently?

Initially no, but if it works out I don't see why not. There's nothing really keeping me here.

2) How much time will you spend in each country?

3) How much work will you do in each country?

I haven't totted up my days out of the UK but would estimate it to be around 150 ayear. My jobs are all relatively short, generally about 1 week, rarely longer than 2. I don't spend enough time in any foreign country to worry about paying tax there. If I base myself in Thailand I would probably still spend a portion of the year in the UK. Between service visits and time spent in the UK I would almost definately spend less than 50% of my time in Thailand.

4) How clients should be invoiced for work done and who by - you or your employer?

My company would be invoicing but would need to check with them.

5) Make Thailand a local office/regional office/representative office.

6) Set up a Thai company?

I'm flexible really but to honest I'm probably jumping the gun a bit. Setting up a company/regional office is at least 1 year away. My company don't really want me to be based overseas, I'm the 1 pushing for it. I just need to put my case forward and make it attractive for them.

These are just some of the things to think about.

From a taxation point of view you need to consider which country you will be liable to tax in - normal rule of more than 6 months being where you are assessable for all income. In your situation you may be able to be non-resident in any country (leass than 3 months in each)!

You are in the fortunate position of having a flexible employer/situation so can plan to your best advantage.

Would suggest you get 1 year or the new 3 year (embassy in London only) NON IMM B multiple entry and sort out your options whilst in the UK and when you are over here.

Speak to a tax specialist about your tax issues a(PM me if you want more advice)nd a Thai lawyer/business specialist about options for business set up here that is best for you in your situation.

Cheers

Jim

Like I said I doubt I would spend more than than 6 months in Thailand in my present position but it would probably be more than 3. I agree, initially I just need to get myself over to Thailand, setting up a company is not my immediate concern.

Cheers Jim, I'll drop you a line soon, thanks.

Was out in Chester last night. God I need to get out of here.