New Wp Rules As Of 15 Nov In Effect?

[Cyberstar]

Have seen rumours - mainly on this site - of changes to Foreign Business Act and related laws supposed to come in effect November 15. (this year). Haven't seen any confirmation, though, nor any details. However, when I went to labor department, today, for a one-year extension of my work permit things were a lot more simple than indicated by all I've seen and heard on this issue before.

Although feeling quite a bit intimidated by reading on various lawyer websites about all the difficulties one will encounter, trying to renew a workpermit on one's own - I decided to give it a try.

Mentally prepared for a complete failure I went to the labor office, fully equipped with the whole set of personal and employer docs needed to apply for a brandnew workpermit plus the last three months tax statements, which are (used to be) required when applying for a one-year renewal.

I handed over the whole pile of docs together with the filled out WP.5 form, expecting a lot of problems. What did happen? The official pulled out two passport pages - the datapage and the page with the latest stamp - pushed back the rest and 10 minutes later my WP had a stamp allowing me to work until October 19 next year. (I "desperately" tried to make her take at least the tax documentation, but even that she didn't want).

Well, this was my first time extending a WP in Thailand beyond the first year initially granted (by assistance of a dearly paid lawyer-team) - so I wonder: Has it always been this easy or have they eased up on the WP rules? (The latter would make sense - make it harder for the bad guys and make it easier for the good guys to get legal).

[BronzeRider]

Cyberstar -- so I wonder: Has it always been this easy or have they eased up on the WP rules? (The latter would make sense - make it harder for the bad guys and make it easier for the good guys to get legal).

good question --

maybe sunbelt can answer

BR

Edited November 17, 2006 by BronzeRider

[helicoptor]

This prompts the question about inconsistency.. was all your paperwork in order or did you just deal with someone who is more lenient than others maybe?

[Cyberstar]

This prompts the question about inconsistency.. was all your paperwork in order or did you just deal with someone who is more lenient than others maybe?

They were perfectly in order (the very same set as submitted at the initial WP-application together with Tor Ngor Dtor 1 from the last three months), but she didn't even bother to look at them. (If any of the documents were required - I'm sure she'd picked them out to file together with the two passport pages).

[thaihome]

Again, proof that unfounded hysteria is rampant. I renewed my extension last month. 30 minutes.

Between the visa exempt rules and JG vs SM I know 2 web sites that must have huge numbers the past month.

What is going to keep us entertained in January when nobody has been thrown out or refused entry and JG has disappeared?

TH

[Digger]

Cyberstar just curious as I am getting concerned about this - do you work for a BOI company ? Maybe if you explain a little bit about the size and profitability of your company would go a long way to putting the rest of our minds at more ease. I for one am concerned as our company has been established for 3 years and our accumulated losses are going to exceed our capital paid in (2,000,000 due to depreciation laws and the fact that we keep using our income (6,000,000 baht in last year) to expand our business through more capital expenditure. Our business is cash positive but maybe I am worrying unduly and we have more than enough to meet our obligations and the reason we spend so much is to grow quickly. Incidentally we have a director loan account which started at 16,000,000 baht and is now down to about 12,000,000 baht which was done to minimise income tax through salary and dividends hence we have a low capital.

Many thanks

Digger

[billaaa777]

Digger,

I have read your comments a few times and I am a little confused. I hope this very short explanation helps a little. I am a CPA with a Masters Degree in Accounting. Maybe with a little more detail I could be more helpful, sorry.

Paid in Capital is simply the funds that are used to buy stock in a business when starting it. It should not increase or decrease unless more funds were pumped into to the business or there was a stock buy back of some kind.

You stated you had 6,000,000 in income last year which would have increased you owner’s equity portion of your balance sheet in an account named “Retained Earnings” by the same amount. So, unless prior to that you had accumulated losses exceeding that amount you should have positive equity.

You stated you used 6,000,000 for capital expenditures last year. This has no effect on the owner’s equity portion of your balance sheet. It is simply and exchange of one asset (cash) or liability (a loan) for another asset. So if the capital expenditure was bought in cash your assets would not have changed at all. Only the names on the account. It will only have an effect on equity when those assets are expensed as depreciation.

You stated your business is cash positive. A business that is cash positive and spending a great deal of money on capital assets almost by definition is making a great deal of money, thus increasing their owners equity portion of their balance sheet.

You stated you have a director loan account which started at 16,000,000 baht and is now down to about 12,000,000. Again, paying off this loan would have no effect on the equity portion of your balance sheet. You are simply reducing your assets (cash) and your liabilities (loan to director) by the funds utilized to pay down the loan. If, the director is charging you interest on the loan, that would have an effect on your equity, as that would be an expense for the firm which would reduce your income by the interest accumulated during that period.

Just from your short explanation it sounds like you have a very strong business. It makes it very difficult to understand why you’re worried about negative equity. I would suggest getting a very detailed explanation from your accountant and then review that explanation with another accountant.

Any business that is cash positive while accumulated a great deal of capital assets is making good money and should have positive equity on there balance sheet.

[Cyberstar]

Cyberstar just curious as I am getting concerned about this - do you work for a BOI company ? Maybe if you explain a little bit about the size and profitability of your company would go a long way to putting the rest of our minds at more ease ...

No, no BOI involved here ... and neither the employer's nor my financial capabilities are at a level that could possibly ease red tapes. My employer isn't but a minimalistic Thai co., ltd, that just barely meets the requirements for getting a WP for a foreigner (1 mil registered capital and VAT-registration) and my tax payments amounted to 1,890 Baht per month - also a bare minimum.

The point I was trying to make in my OP was that no documentation for neither employer nor my income was required for the one-year WP-extension - which I believe means that neither the employers nor the employees financial situation matters for the labor department.

Be careful, though, not to mix up requirements for 1-year WP-extension with the much tougher requirements for 1-year extensions of particularly non-imm "B" visa.