Cost and profit from hiring a foreigner by a Thai company.

[Henderson]

Hi,

A Thai company which has 10 Thai employees (people who actually work) decided to hire a European foreigner as a consultant.

The salary which would be paid to this individual would be the Minimum required by law as per the foreigner's nationality:

Canada, Japan, United States 60,000 THB
Europe (incl. UK) Australia 50,000 THB
Hong Kong, Malaysia, Korea, Singapore, Taiwan 45,000 THB
China, India, Indonesia, Middle East, Philippines 35,000 THB
Africa, Cambodia, Laos, Myanmar, Vietnam 25,000 THB

 

In this specific case as the person is German, the salary is set on Baht 50,000/month.

 

Now, my questions are:

1. what is the actual cost of this person to the company (his yearly salary based on the tax chart, social security, Work permit & all other actual costs)

2. As the salary is considered a business expense, what is the value in baht for the company?

 

* The company already has the sufficient Thai workers so there is no extra cost of hiring/paying social security due to the consulting job.

 

I appreciate your assistance here.

 

 

 

 

 

[ubonjoe]

The numbers for the salary are not exactly correct.

Quote

Table of Income for Criteria 2.1(2)
Annexed to Order No. 327/2557 of the Royal Thai Police Bureau dated June 30, 2014
1. Countries in Europe (except Russia) and Australia, Canada, Japan, the United States of America
50,000 baht/month
2. South Korea, Singapore, Taiwan, and Hong Kong
45,000 baht/month
3. Countries in Asia (except Japan, South Korea, Singapore,
Taiwan. Hong Kong, Cambodia, Myanmar, Laos, and Vietnam) and South America, countries in Eastern Europe, countries in Central America, Mexico, Russia, and South Africa
35,000 baht/month
4. Countries in Africa (except South Africa), Cambodia, Myanmar, Laos, and Vietnam
25,0000 baht/month

Since this is not directly visa related I am moving it to the business forum.

[Henderson]

3 minutes ago, ubonjoe said:

The numbers for the salary are not exactly correct.

Please let me know the correct numbers.

 

3 minutes ago, ubonjoe said:

Since this is not directly visa related I am moving it to the business forum.

It is 100% visa related, there is no other reason to take this job aside from obtaining the Visa as a part of this process.

[FritsSikkink]

1 hour ago, Henderson said:

Please let me know the correct numbers.

 

It is 100% visa related, there is no other reason to take this job aside from obtaining the Visa as a part of this process.

So are you asking advise for a fake job just to get a visa?

[harrry]

I am sure the job would be a valid one.  The fact that it would be helping a foreigner who wished to live in thailand is a by product.  

All sensibel firms balance costs and benefits and this is all that seems to be being done here.  If the advice he can give is worth more to the company than the cost it is a valid business proposition.

[Henderson]

40 minutes ago, FritsSikkink said:

So are you asking advise for a fake job just to get a visa?

No, it's an actual job which will I'll take and do for fraction of the actual salary I would be paid in Germany and I've agree to that because it will allow me to get a visa, simple as that.

 

[LivinLOS]

Are you looking for the real cost including the salary.. Or merely the 'costs involved with legalization' ie the taxes to be directly paid over.. 

 

Also the costs of lawyers to process it all, or will that be handled by functionaries within the company. 

 

Looking at the costs of income tax on 600k per annum is fairly simple.

[overherebc]

After he gets his salary from you he could always hand it back to you, what's left after tax anyway.

That way he gets his visa and you get free beer money.

[zyphodb]

I wish that those figures applied for teachers...  Not much chance of the government following its own laws if they can get them cheaper though is there... 

 

[Henderson]

52 minutes ago, LivinLOS said:

Are you looking for the real cost including the salary.. Or merely the 'costs involved with legalization' ie the taxes to be directly paid over.. 

 

Also the costs of lawyers to process it all, or will that be handled by functionaries within the company. 

 

Looking at the costs of income tax on 600k per annum is fairly simple.

Including the salary, how much in total would I be costing this company as an employee, thank you.

[FredNL]

50k THB salary. (€ 1,250.- -> € 1.551,60 is minimum wage per month !!!)
Unskilled Germans earning more than that in Germany !!!

Garbage collectors already making 1950.- € net !!!

 

What kind of loser would accept a job for € 1,250 ???
 

Edited December 27, 2016 by FredNL

[Satcommlee]

Income 600'000 THB

 

Tax payments on this...

750 Bhat a month social security

1275 month workers compensation (employee and employer)

Income tax (single man no kids) = 2500 Bhat/mth

 

So around 55K a year plus professional fees of lets say 15K for work permit etc..

 

but the business can save tax to the tune of 120'000 baht (assuming corporate rate of 20%) so this scam may be detected by a vigilant tax officer.

Also, you will have rights and he will have to give you 3 months severance pay which may put them off unless you sign undated resignation letter.

 

Not guaranteed for accuracy so take above with the diligence it deserves..

Edited December 27, 2016 by Satcommlee

[Henderson]

35 minutes ago, Satcommlee said:

Income 600'000 THB

 

Tax payments on this...

750 Bhat a month social security

1275 month workers compensation (employee and employer)

Income tax (single man no kids) = 2500 Bhat/mth

 

So around 55K a year plus professional fees of lets say 15K for work permit etc..

 

but the business can save tax to the tune of 120'000 baht (assuming corporate rate of 20%) so this scam may be detected by a vigilant tax officer.

Also, you will have rights and he will have to give you 3 months severance pay which may put them off unless you sign undated resignation letter.

 

Not guaranteed for accuracy so take above with the diligence it deserves..

Thank you very much for your time, I appreciate it.

[williamgeorgeallen]

2 hours ago, FredNL said:

50k THB salary. (€ 1,250.- -> € 1.551,60 is minimum wage per month !!!)
Unskilled Germans earning more than that in Germany !!!

Garbage collectors already making 1950.- € net !!!

 

What kind of loser would accept a job for € 1,250 ???
 

thousands of english teachers earn less than that in thailand. i have met plenty of them and they tend to live pretty shitty lives.

[smotherb]

4 hours ago, FredNL said:

50k THB salary. (€ 1,250.- -> € 1.551,60 is minimum wage per month !!!)
Unskilled Germans earning more than that in Germany !!!

Garbage collectors already making 1950.- € net !!!

 

What kind of loser would accept a job for € 1,250 ???
 

Maybe, the kind of loser who wants to be in Thailand and have a job.

[khunPer]

Social Security comes on top of salary, it's 10% at the moment (percentage can change annually) and normally paid by half, i.e. 5%, by the employee and deducted from salary, and the other half by the employer. The minimum Social Security use to be 500 baht, and maximum 1,500 (check if that rates are valid for 2017), i.e. the wage costs will be 50,750 baht per month for the company. I don't think Social Security is mandatory for a foreigner, but it's best to pay it, as it also makes the foreign worker eligible to use Thai public hospitals. The "One Stop" office at the amphor use to have a small English leaflet about Social Security for foreign workers.

 

Income tax starts at 5% of income over a certain minimum and personal deduction, typically what's more than 15,000 baht a month – the company accountant should be able to make a specific calculation; typically a foreign employee on minimum required salary will pay between 2,000 and 3,500 baht a month in income tax.

 

The Visa needed is a Non-immigrant B (Business) valid for 3 month, of which the permission to stay in the Kingdom can be extended by Immigration. The required minimum salary is not for the job, but for the permission to have the permissin to stay extended. To have a so-called "Non-B" issued, you will need an employment letter from the company, I think Visa shall be applied for at a foreign Thai-embassy or consulate only. Other proof may be required from an embassy (please correct me, if changed, or I'm wrong).

Edited December 27, 2016 by khunPer

[Autonuaq]

Start with 150.000 thai bath to pay

And add a House and free car.

 

One flight per year home os about 80.00cost for visa and workpermit as well the minimal caitpal needed for registration.

 

Those low wages are for other jobs and indication to think about.

 

There are list that are used

Consultants are in general 100.000 plus

 

The plus for the organisation is the new culture.

 

The challenge for the consultant is the thai culture.

 

 

Edited December 27, 2016 by Autonuaq