IMPACT – MEDIUM

What is the change? The One Stop Service Center (OSSC) will no longer provide work permit or long term visa processing to companies that do not have a registered office in Bangkok and are not registered with either the Board of Investment (BOI) or Industrial Estate Authority of Thailand (IEAT).

What does the change mean? Non-BOI companies without a registered head or branch office in Bangkok can no longer rely on the expedited visa-extension process at the OSSC and must apply at the Immigration Office in the province where the company is registered, even if the company’s registered capital or net assets exceed 30 million bahts (about US$976,000).

  • Implementation time frame: Immediate. The change took effect May 31.
  • Visas/permits affected: Work permits, long-term visas, long-term visa extensions.
  • Business impact: Affected companies should anticipate longer processing times and additional documentary requirements at the provincial Immigration Office.
  • Next steps: Companies that are not registered with the BOI or IEAT and do not have a registered office in Bangkok should plan for processing changes for their expatriate employees, as the provincial Immigration Offices require extensive documentation and issue a one-month temporary visa before a decision on the one-year visa extension is granted.

Background: The change in policy was announced without notice and took effect May 31.

Among the changes, non-BOI companies that relied on the expedited OSSC process for one-year visa extensions will now need to apply at the provincial Immigration Office where the company is registered. The Immigration Office applications involve a longer process and require more documentation than the OSSC—such  as three months of tax withholding and VAT (instead of one month required by the OSSC), a lease agreement and notification of residence of foreigners via the TM-30 form from the employee’s landlord, and photos of the director and authorized signatories of the company.

Analysis & Comments: Companies that will no longer be able to rely on the expedited OSSC process should plan to follow the provincial Immigration Office requirements and should be aware that the employee will be issued a one-month temporary visa while the visa extension application is pending. The employee may travel outside Thailand during this time, but must be in Thailand before the one-month period expires to receive an approved extension and multiple reentry visas.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom. 

IMPACT – MEDIUM

What is the change? The Immigration Bureau at Chaengwattana Bangkok has announced changes regarding the Notification of Residence of Foreigners (TM30) form.

What does the change mean? Applicants must now submit and have an official receipt of the TM30 form prior to submitting visa extension applications with the Immigration Bureau at Chaengwattana Bangkok. Officers will reject applications if the TM30 has not been filed and no receipt has been issued.

  • Effective date: March 28, 2019.
  • Documents affected: Visa extensions; 90-day reports.
  • Who is affected: Individuals submitting visa extension applications and landlords fulfilling reporting requirements in Bangkok.
  • Impact on employers: Employers must ensure that the TM30 form is filed prior to submitting the aforementioned applications. Failure to do so could result in the application being rejected.
  • What to watch:Although the regulation is currently only in effect in Bangkok, it may be expanded throughout the country.

Analysis & Comments: Employers and all expatriates should take into account the change and ensure that all TM30 forms are filed prior to submitting visa extensions applications in Bangkok.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? The Thai government has amended its SMART visa program, opening it up to new industries and easing application processes and eligibility requirements for foreign experts, executives, entrepreneurs and investors.

What does the change mean? The changes have broadened the SMART visa program and allow more people to apply.

  • Implementation time frame: Ongoing. The Thai Cabinet approved the amendments in November.
  • Visas/permits affected: SMART visas.
  • Who is affected: Foreign experts, executives, entrepreneurs and investors in target industries.
  • Business impact: The changes are intended to help attract foreign talent and investment.

Background: Thailand launched the SMART visa program in 2018, looking to attract foreign workers in key “S Curve” industries. Officials recently added (1) alternative dispute resolution services, (2) human resource development for science and technology and (3) renewable energy and environmental management to its list of S Curve industries. They have also said they will open a fast-track service for SMART visa holders at all international airports that already have a fast-track lane.

Application requirements have also changed. For example, officials dropped the monthly income requirement in the SMART ‘T’ visa category for highly skilled professionals to 100,000 baht per month (about US$3,150) or 50,000 baht per month for those working at local start-ups. The government also changed investment thresholds for SMART ‘I’ visas for investors. Applicants now must invest at least:

  • 20 million baht per individual investor in businesses using technology in the production process or services or venture capital companies certified by the government,
  • 5 million baht in government-certified start-ups, incubator programs or accelerator programs.

Analysis & Comments: The SMART visa program was designed to attract foreign talent and investment, and the recent changes were implemented to ease processes and qualification requirements for experts, executives, entrepreneurs and investors.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? Thailand’s One Stop Service Center is imposing additional documentation requirements on non-Board of Investment companies applying for work visa renewals.

What does the change mean? According to an unwritten policy, non-BOI companies renewing work visas for foreign employees must present tax documents and social security contributions for the previous three months if immigration officers are suspicious of the business operation of the employer. The following are examples of when the companies may need to present the documents:

  • When the net value of assets (total current assets minus total current liability) is not significantly more than 30 million baht (about US$910,000), e.g., 30-50 million baht. 
  • When the company’s Thai or foreign employees are paid the minimum required salary or slightly more, e.g., if Thai employees are paid around 9,750 baht per month and foreign employees are paid 35,000 Baht per month.
  • When the ratio of Thai employees to foreign employees is just enough to cover the required four-to-one ratio, e.g., if a company has 20 Thai employees and five foreigners.

Immigration officers may exercise discretion in considering many factors and the overall circumstances; therefore, it is difficult to predict who will be affected.

What is the purpose of this change? The employer must be the real employer and have real business operations. Immigration officers are vetting the qualifications of the company rather than the employees or particular nationalities. Therefore, if Indian nationals or other “watch list” nationals are employed by large companies where immigration officers do not have reason to suspect the employer, additional documents will not be requested. Watch list countries are: Argentina, Bangladesh, Bolivia, Chile, Colombia, Gambia, Ghana, Guinea, Iran, Indian, Liberia, Mali, Nepal, Nigeria, Pakistan, Peru, Senegal, Sierra Leone, Sri Lanka, Togo and Uganda.

  • Implementation time frame: Nov. 1.
  • Visas/permits affected: Work visa renewals for non-BOI employers whose business operations raise suspicion.
  • Business impact: The stricter rules are in response to an increase in forged documents and false statements on applications in the past year.
  • Next steps: Employers should factor in the additional time needed to gather tax and social security documents for the previous three months, as well as time to obtain the necessary certifications if they are asked to do so.

Background: Generally, only the previous month’s tax, VAT (value added tax) return and social security contributions are required by the OSSC. The new rule requires the following for any suspected employer:

  • Copy and receipt of monthly salary withholding tax for all Thai and foreign employees for the previous three months that are officially certified by the Thai Revenue Department.
  • Copy and receipt of monthly VAT returns for the previous three months that are officially certified by the Thai Revenue Department.
  • Copy and original receipt of the monthly social security contribution for the previous three months of all Thai and foreign employees.

Analysis & Comments: Employers should be aware that additional company qualifications and documentation may be requested of them, such as financial statements, total assets and liabilities, and number and salaries of Thai and foreign employees.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? When applying for work permit preapproval with the Department of Employment (non-Board of Investment applications), employers may be asked to submit copies of the foreign employee’s passport departure page to demonstrate that he or she has exited Thailand before applying for the preapproval. Previously, only the first page of the passport (the photograph page) was required to support the application.

What does the change mean? The passport copies enable the DOE to ensure that the applicant is not in Thailand while the company files the preapproval application.

  • Implementation time frame: Immediate.
  • Visas/permits affected: Pre-work permit approval, or PWPA.
  • Business impact: Employers will need to follow up with foreign employees who have ever entered Thailand before having applied for the PWPA. They should obtain these employees’ departure pages to submit with the PWPA application.
  • Next steps: Foreign employees should plan to provide copies of all passport pages at the outset of the application process. The requirement for dependent family members has not changed.

Analysis & Comments: Employers are reminded that foreign employees who apply for preapproval are prohibited from being in Thailand during the process. Despite this rule, many foreign nationals stay in Thailand while applying for the preapproval and, as a result, must cancel their preapproval for failing to meet the conditions. Officers who discover that a foreign employee was in Thailand when the preapproval letter was issued cannot issue the work permit booklet and must cancel the preapproval letter. The new policy is intended to reduce the number of cancellations and ensure compliance with work permit rules prohibiting employees from starting work before the work permit is issued.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? The Board of Investment’s Single Window System will no longer automatically cancel a job position when the employer files for cancellation of a visa and work permit that remain valid for more than 90 days. But if the position remains valid for less than 90 days, it will be canceled automatically.

What does the change mean? BOI companies may hire a foreign national for the same title and position as that of the canceled work permit without needing to file for a new job position approval, thus reducing the relocation time of the new employee from six to eight weeks to three to four weeks.

  • Implementation time frame: Immediate. The change took effect Sept. 3.
  • Visas/permits affected: Visas and work permits under BOI.
  • Who is affected: All BOI-registered companies.
  • Impact on processing times: Companies will save time when refilling a canceled work permit with a new employee as they will not need to file a new “pre-position” approval application, which takes approximately three weeks.

Background: Previously, once a BOI company submitted an application to cancel a visa and work permit, the position approval was automatically removed from the system and the company would need to reapply for approval before filling the position with a new employee.

Companies should note that foreign engineers who are nominated for a job position must possess an engineering degree, and that software, programmer or other IT professionals must submit all certificates related to their field in addition to the educational certificate related to the BOI job title.

Analysis & Comments: The change will ease job mobility by reducing the steps that BOI companies need to take when replacing a former employee and shortening the relocation time for new employees. However, the replacement employee’s work permit and visa will be valid for the same period as the previous position and need to be renewed before its expiration date.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? Following the issuance of an Emergency Decree on Managing the Work of Foreigners, authorities in Thailand have issued new rules for obtaining extensions of urgent work permits.

What does the change mean? Employers and foreign workers intending to extend an urgent work permit beyond its initial 15-day validity period will be required to apply for an extension through the Employment Department before the initial validity period ends. When doing so, they must submit a new application and provide a letter from the sponsoring company explaining why the extension is needed. Exact procedures may vary, depending on where in Thailand an extension is sought.

  • Implementation time frame: Immediate and ongoing.
  • Visas/permits affected: Urgent work permit extensions.
  • Who is affected: Employers and foreign nationals who need to extend an urgent work permit beyond the initial 15-day period.
  • Business impact: Businesses should take note of the new rules in order to avoid the risk that employees may lose their work authorization.  

Background: The emergency decree, issued in late March, contains significant changes to the rules for companies hiring foreign employees. The decree specified that foreign nationals entering Thailand for urgent work must notify the registrar and, absent an extension, must complete their work within 15 days. Regulations detailing the procedures to apply for an extension have now been published.

Procedures may vary from office to office; for instance, some provincial offices may require extension requests to be submitted at least three days before the initial work permit ends, whereas requests submitted at the One Stop Service Center will take applications up until the day on which the initial permit expires.

Foreign workers will be allowed to request two extensions and then will be required to leave Thailand for a 45-day cooling-off period before applying for another urgent work permit. However, authorities will consider requests on a case-by-case basis as to whether foreign workers have sufficient necessity to return to Thailand within 45 days.

BAL Analysis: Employers should be sure that they submit requests for extensions of urgent work permits in a timely manner and that they provide an adequate explanation for the reasons the work must continue. Applicants are encouraged to work with BAL, especially when submitting requests outside of Bangkok, because of the likelihood that procedures may vary from office to office.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? An Emergency Decree on Managing the Work of Foreigners, issued March 28, contains significant changes to the rules for companies hiring foreign employees.

What does the change mean? While the regulations are pending, many of the changes have not taken effect and implementation has been delayed. Some of the provisions, including the use of new filing forms by applicants, have already been implemented.

  • Implementation time frame: Ongoing. Some of the provisions have delayed effective dates. See details below.
  • Who is affected: Thai companies employing foreign nationals and foreign national employees. Currently, only the One Stop Service Center, not the Employment Department, is implementing the changes. BOI and IEAT companies are not currently affected.
  • Business impact: Employers should prepare for the changes and take advantage of the grace period to review their records and ensure that their foreign workers are in compliance with work permit regulations in order to avoid penalties
  • Next steps: Implementing regulations are expected to provide greater clarity in coming days.

The following is a summary of key changes:

  • Work permit exemptions. Specific exemptions from work permits apply to certain categories, including individuals entering Thailand to organize, set up, participate or lecture at a conference, including providing training or seminars for designated purposes to be set by the Cabinet. Also exempt are foreign nationals who register with the Ministry of Commerce as a representative of a branch office, representative office, or regional office that has received a foreign business operation license. Details on how these exemptions will apply are expected in coming weeks.
  • Notification requirements. The employer and the foreign employee must notify the registrar of the Employment Department within 15 days of the employee’s work start date. An employer is also required to notify the registrar within 15 days of the termination of employment. Failure to register on time will result in a monetary penalty of up to 20,000 baht (about US$622). The notification requirements are currently in effect but the penalty provisions are delayed until July 1. Furthermore, employers who were employing foreign workers before the emergency decree must notify labor authorities of the employees’ names, nationalities and job roles within 60 days of March 28; these notification procedures will be announced by the director general of the Employment Department.
  • Extension of Urgent Work Permit. A foreign national who enters Thailand to perform urgent work must notify the registrar and complete the work within 15 days. If the work is not completed within that time, the employee may request an extension of no longer than 15 days, but the request must be made before the end of the original 15 days. Ministerial regulations are expected to detail the procedures to apply for an extension.
  • Change of work details. An employee who changes or adds a work location with the same employer is not required to notify the registrar as long as the location is the place where the employer is registered with the Ministry of Commerce or is legally obliged to work (such as under a contract to work at a client site). An employee may change or add job title or job duties for the same employer without notifying the registrar as long as the change is permitted under the emergency decree, i.e., is not one of the 39 prohibited professions.
  • Penalties. The emergency decree has lowered the maximum fines that were initially set to take effect in January; however, the fines for employer and employee noncompliance will still be increased from current amounts. Employers who engage a foreign employee in a prohibited occupation is subject to a fine of 10,000 to 100,000 baht per employee, and the employee is subject to a fine of 5,000 to 50,000 baht. Employers who hire foreigners without a valid work permit are subject to fines of 10,000 to 100,000 baht per employee, and an employee is subject to a fine of 5,000 to 50,000 baht. An employer who is a repeat offender will be liable for fines of 50,000 to 200,000 baht per employee and up to one year of imprisonment, and prohibited from employing foreigners for three years from the date of a final court judgment. These new penalties take effect July 1.

BAL Analysis: Businesses should prepare for the changes, perform the new notification requirements for foreign workers, and wait for additional details on the exempt categories. Regarding the new fine schedule, the Thai government has taken into consideration concerns and complaints from the business community by reducing the maximum fines and introducing a grace period to allow companies to file appropriate work permit applications and to allow time for authorities to adjudicate them.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Government offices in Thailand will close for five days beginning Thursday for the Songkran New Year holidays.

What does the change mean? Applicants should anticipate longer processing times for applications submitted this week and following the holidays.

  • Implementation time frame: April 12-16.
  • Visas/permits affected: All immigration-related government services.
  • Who is affected: Applicants seeking visas, work permits or other services from Thai government offices.
  • Impact on processing times: Applicants should expect delays in the issuance of visas and permits following the holiday period.

BAL Analysis: Companies and individuals applying for visas and work permits should factor the holiday break and associated delayed into their plans. Those applying abroad should contact the relevant Thai consulate for specific holiday schedules.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – HIGH

What is the change? The Thai government is introducing a SMART visa for foreign experts, executives, entrepreneurs and investors in 10 “S Curve” industries.

What does the change mean? Among the benefits, SMART visa holders will be exempt from having to apply for work permits, and their spouses and children are eligible for resident permits during the length of the primary visa holder’s stay.

  • Implementation time frame: Estimated Feb. 1, pending implementing guidelines.
  • Visas/permits affected: SMART visas.
  • Who is affected: Foreign experts in 10 designated industries.
  • Impact on processing times: The process, including issuance of relevant endorsement letters, is expected to take 30 business days.
  • Business impact: The visas are intended to attract foreign talent and investment in targeted industries.
  • Next steps: Implementing guidelines are still being finalized. Applicants will be required to apply for a letter of endorsement from the SMART Visa Unit of the Thai Board of Investment (through the One-Stop Visa Center) and then another endorsement of their qualifications from the designated certifying government agency for their professional field.

Background: There are four categories of SMART Visas. Applicants must work in one of the following 10 targeted industries and meet the qualification for their category.

  • Next-Generation Automotive
  • Smart Electronics
  • Affluent, Medical and Wellness Tourism
  • Agriculture and Biotechnology
  • Food for the Future
  • Automation and Robotics
  • Aviation and Logistics
  • Biofuels and Biochemicals
  • Digital
  • Medical Hub
SMART Visa category Qualifications Duration Other Benefits
T – Highly Skilled Experts (Talents) Expertise in science/tech in a relevant target industry, minimum salary of 200,000 baht, and minimum 1-year contract with a Thai entity that is certified by relevant government agencies. 4 years maximum, but not exceeding duration of contract. No work permit required, no re-entry permit required, spouses and children over 18 granted work authorization.
I – Investors Direct investment of at least 20 million baht in a Thai company that uses technology as the basis for goods or services; business must be certified by a relevant government agencies. 4 years maximum. No work permit required, no re-entry permit required, spouses granted work authorization.
E – Senior Executives Minimum salary of 200,000 baht, hold a bachelor’s degree or higher and minimum 10 years of experience in relevant field, hold a senior management position such as chairman or managing director, and hold a minimum 1-year contract with a Thai entity certified as using technology as a basis for goods and services in a targeted industry. 4 years maximum, but not exceeding duration of contract. No work permit required, no re-entry permit required, spouses and children granted work authorization.
S – Startups, Entrepreneurs Participating in an incubator or accelerator program (or receiving joint venture funding) that is endorsed by a relevant government agency. Applicant must set up the company within one year and hold at least 25 percent ownership or be a director. Applicant must have fixed savings of at least 600,000 baht, at least 180,000 baht for spouse and each child, and have a health insurance policy. 1 year initial, and renewal for up to 2 years if requirements are met. No work permit required, no re-entry permit required, spouses granted work authorization.

BAL Analysis: The SMART visa program is a positive development aimed at attracting science and technology experts by providing work-permit exemptions for qualifying senior executives, highly skilled talents, investors and start-ups. BAL is following this development and will report additional information when the guidelines are available.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.