Hello,

If im working freelance for a thai company while im in another country, is it normal for the thai company to ask for a copy the foreigners passport? I feel like its too personal and not needed but im not sure its safe to give or common practice. I understand a thai freelancer giving a copy of ID card would be normal. But if a foreigner is doing the work in another country, why would the thai company need a copy of my passport?

Any help or guidance on this would be very appreciated. Thank you.

I do not find it so odd. They want proof of identity. The data page of your passport does not really contain sensitive data. I do not care if my employer knows my date of birth, height and whether I have birthmarks.

And also a follow up question...

If I invoiced for 5000thb for a design and the company sent 4,700thb to my account as a result of taxes... does that make sense? I find it odd that the company I did work for as a contractor overseas would be charging me tax when I sent the invoice. Im a company charging for services. Because im not a thai company I didn't add tax but they felt inclined to send a lower amount due to thai taxes? Is that right?

If it was for taxes it would probably be more than 300 baht. Perhaps there was deduction done by the sending or receiving bank.

If it was for taxes it would probably be more than 300 baht. Perhaps there was deduction done by the sending or receiving bank.

Nope, specific reason was taxes. I do have a thai account and it was free bank to bank transfer. Is that why? Because I have thai bank?

fees and additional costs are not your customer's problem unless it's clearly stated in invoice that all costs should be paid by invoicee.

Not odd at all. Everywhere you go in this country, they want a copy of your passport. Banks, hotels, I have even had to give a copy at HomePro when I bought a new air conditioner (not really sure why).

But also It seemed odd because its like if you were a thai company and you outsourced to India... you wouldn't charge the indian thai taxes when they invoiced you for their services. As far as im aware the person doing the invoicing is responsible for taxing and then reporting that to their own government at tax time.

If it was for taxes it would probably be more than 300 baht. Perhaps there was deduction done by the sending or receiving bank.

Nope, specific reason was taxes. I do have a thai account and it was free bank to bank transfer. Is that why? Because I have thai bank?

in that case doesn't make sense at all. if you invoice 5000 you must receive 5000.

simple as that.

Not odd at all. Everywhere you go in this country, they want a copy of your passport. Banks, hotels, I have even had to give a copy at HomePro when I bought a new air conditioner (not really sure why).

Seriously? at home pro? haha you must have been up to something more than buying an A/C unit... perhaps signing up for that rewards program?

But yeah I get banks and hotels asking because it needs to be reported and verified by authorities such as the immigration reporting and banks for security reasons and possibly communicating to foreign banks like the US... this is a different situation though.

But all that a side... is there anything of risk in submitting that passport copy.

Normally if you work as a freelancer in Thailand you will be deducted 3% witholding tax.

so 5,000 THB becomes 4,850 THB.

150 THB is bank transfer fee. so the total would be 4,700 THB?

Why don't you ask the company you did the work for?

http://www.doingbusinessthailand.com/blog-thailand/doing-business-in-thailand/thailand-taxes/thailand-taxe-understanding-thai-withholding-ta.html

payment overseas are subjected to 5% withholding

If they're transferring to a Thai bank, they'll be counting you as working for them in Thailand. As said previously, you should expect them to take 3% in that case. It's perfectly normal for Thai companies to ask for a passport copy from foreigners working freelance for them in Thailand. If you want to be treated as a foreign outsourcer you'll probably need them to transfer to a foreign bank account or perhaps use PayPal or other service.

If it was for taxes it would probably be more than 300 baht. Perhaps there was deduction done by the sending or receiving bank.

Nope, specific reason was taxes. I do have a thai account and it was free bank to bank transfer. Is that why? Because I have thai bank?

The company are in their right and obliged to withhold tax. Even payments for overseas hire for work may be subject to tax at 5%.

Surely the fact that you are being paid in a Thai bank makes you liable for personal tax too. It doesn't sound like you are an overseas freelancer.

As said above it looks like they have deducted 3% withholding tax and the bank transfer fee.

You should have added the tax to your fee when invoicing the company.

Normally if you work as a freelancer in Thailand you will be deducted 3% witholding tax.

so 5,000 THB becomes 4,850 THB.

150 THB is bjank transfer fee. so the total would be 4,700 THB?

Exactly. 3 percent withholding tax is usually deducted.

5,000 we are talking about big money right?

300 baht taken out? That's less than $10.

Is that small amount really getting worked up about or should you just contact the company directly if it is troubling you so much?

Dont you get a breakdown of the payment? I would want one for every invoice.

Ask your client for a copy of the tax receipt from the Thai Revenue Department. Say that you need it for your tax return in your country.

…150 THB is bank transfer fee. so the total would be 4,700 THB?

Which Thai bank charges THB 150 for a transfer to an account in another Thai Bank.

From what bank did the remittance originate? The fee can be

looked up on the website of that bank.

If they're transferring to a Thai bank, they'll be counting you as working for them in Thailand…

No, that's not now it works.

See here for the mechanics of Thai withholding tax:

http://www.doingbusinessthailand.com/blog-thailand/doing-business-in-thailand/thailand-taxes/thailand-taxe-understanding-thai-withholding-ta.html

…150 THB is bank transfer fee. so the total would be 4,700 THB?

What Thai bank charges 150 Baht for a remittance to an account in another Thai bank?

From what bank did the remittance originate? The fee can be looked up on that bank's website.

5,000 we are talking about big money right?

300 baht taken out? That's less than $10.

Is that small amount really getting worked up about or should you just contact the company directly if it is troubling you so much?

They are not large amounts but if you are happy to accept 6% disappearing from your payments with no explanation, freelancing might not be the best career choice for you.

Not odd at all. Everywhere you go in this country, they want a copy of your passport. Banks, hotels, I have even had to give a copy at HomePro when I bought a new air conditioner (not really sure why).

That's for the guarantee, as you bought an AC they will send in the guarantee documents and with a copy of your passport its easy. But you are right that sometimes they ask for copies of passport/ID/other documents for simple things and sometimes it just gets stupid... I hand in copies of: passport (first page and "admitted to" page), degree (diploma and transcript), contract and so on (totally 15 pages)... every month together with my time report to get my salary.