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IMPACT – MEDIUM
What is the change? Under a new rule, foreign employees applying for long-term visa extensions through the One Stop Service Center must submit proof of payment of personal income taxes.
What does the change mean? New work permit applicants will no longer be able to file a long-term visa extension application concurrently because they must wait for their first month’s salary withholding tax to be paid.
Background: Previously, first-year foreign nationals filing at the One Stop Service Center could file for a new work permit and a long-term visa extension application at the same time.
This will no longer be possible. Applicants will have to wait for their employers’ monthly tax declaration to be certified following the applicants’ first salary payment in Thailand before being able to lodge the long-term visa extension application. The same requirement also applies to foreign nationals who are filing for renewal applications of their long-term visa extensions.
In addition to the visa applicant’s monthly salary withholding tax, employers will have to submit proof of monthly salary withholding tax for all foreign employees sponsored by the company, regardless of whether they hold a long-term work permit, short-term assignment work permit or project work permit.
Proof of tax payment must be made using one of the following official forms, based on whether the employee is on a local payroll:
The director of the company must also sign a form confirming the number of foreign national employees in the company. This form is available at the One Stop Service Center and must be submitted every time an employee lodges a renewal application.
BAL Analysis: The change in procedure will cause delays in obtaining long-term visa extensions and completing the formalities for new foreign employees in particular. Thai authorities anticipate that the new requirements will help prevent fraudulent filings by companies at the Service Centers and reduce incidents of foreign workers failing to pay Thai income taxes.
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 © 2016 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.
What is the change? Thailand has introduced an online filing option for foreigners who are required to report to the Immigration Bureau when their stays in Thailand exceed 90 days.
What does the change mean? Foreigners may file through the online portal, but can only do so during a limited period before their notification due date.
Specific Instructions: Foreign nationals must report their address to the Immigration Bureau if they stay for more than 90 days.
Foreign employees may now file online, but only during an eight-day period starting 15 days before their notification due date and no later than seven days before their notification due date. The notification due date is the date on which the foreign has stayed in Thailand continuously for 90 days. The portal will not accept reports during the last seven days before the notification due date because that is the period when decisions are processed. If their online filing is approved, foreigners must print out a receipt as proof and keep it in their passport in case they are stopped.
Foreign nationals opting to file in-person may continue to observe the longer period of reporting, starting 15 days before the notification due date and ending seven days after the notification due date.
BAL Analysis: The online reporting provides an option for foreign employees, but they should note the limited 8-day period during which they can do so. Foreign nationals may continue to send a representative to report for them in-person at the Immigration Bureau instead.
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.
IMPACT – HIGH
What is the change? Thailand has expanded its definitions of business activities that are exempt from work permits, including attendance at board meetings, conferences, seminars, lectures and other activities.
What does the change mean? Foreign nationals entering Thailand to perform any of the seven exempted activities listed below will no longer be required to obtain work permits or urgent work permits.
Background: As of March 13, the Employment Department began recognizing an expanded list of business activities it now considers “non-work” activities and thus do not require a work permit or urgent work permit.
The list of activities includes:
BAL Analysis: As this rule is newly implemented, clients are strongly advised to consult with their BAL representative to confirm that their activities fall within the list of permitted activities and to strictly limit their activities to those that are specifically listed. Companies and foreign travelers should take special note that while they are not required to obtain work permits for general business meetings, a foreigner who travels to Thailand to be a “trainer” or “speaker” for a conference or seminar must obtain a regular work permit or urgent work permit. Additionally, while individuals attending training sessions, seminars or conferences are not required to obtain work permits, foreign workers who will be trained at the company or work site must apply for work permits.
What is the change? As a fraud-prevention measure, Thailand has imposed stricter certification rules for numerous documents that are required in work permit applications at the One-Stop Service Center.
What does the change mean? Applicants must obtain certification of each document by the appropriate agency, adding time, expense and delays to the process.
Background: Under the new rules which take effect Jan. 19, Thailand’s One-Stop Service Center will no longer accept originals of the documents listed below. Instead, the agency that issues each document must certify it.
BAL Analysis: Employers should anticipate delays as it may take time to obtain certification from each government agency. Clients are encouraged to work with their BAL attorney as soon as possible to plan for the additional time, expense and inconvenience involved in meeting these new certification requirements.
What is the change? Thailand has distributed a form, “Acknowledgment of Penalties for a Visa Overstay,” which visitors must sign when they obtain or extend visas.
What does the change mean? Thailand is cracking down on foreigners who overstay their visas.
Background: The Immigration Bureau has begun a campaign to strictly enforce the nation’s immigration rules. Foreigners who obtain visas, visa extensions (Board of Investment and non-Board of Investment visa-holders), or who are making 90-day reports are now required to sign the “Acknowledgment of Penalties for a Visa Overstay” form, which requires name, nationality, passport number and signature.
Foreigners who overstay their visas by up to 90 days face fines. The Immigration Bureau is proposing that overstays of more than 90 days be punishable by re-entry bans ranging from one year to life, depending on the length of the overstay.
BAL Analysis: The new acknowledgement form and proposed penalties are a compliance reminder to companies and foreign assignees.