Thailand Archives

IMPACT – HIGH

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.

Implementation timeframe: Jan. 19, 2015.
Visas/permits affected: All work permit applications.
Who is affected: Employers and foreign employees.
Impact on processing times: Processing times may remain the same, but applicants will have to devote significantly more time to document gathering and preparation.
Business impact: The new requirement adds a significant administrative burden on employers and foreign employees and is likely to create considerable delays when applying for work permits.
Next steps: Employers should allot more time and expect additional expenses to obtain document certification from all relevant agencies.

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.

A copy of the employer’s financial statement in Thai, containing a balance sheet and profit-and-loss statement for the previous year, audited and signed by the CPA, must be officially certified by either the Revenue Department or the Ministry of Commerce.
A copy of the corporate income tax return (P.N.D.50 form) and receipt for the previous year must be officially certified by the Revenue Department.
A copy of the company’s monthly salary withholding tax (P.N.D. 1) and receipt for the most recent month for all Thai and foreign employees must be officially certified by the Revenue Department.
A copy of the monthly Value Added Tax (VAT) return (Phor Por 30 form) and receipt for the most recent month of all Thai and foreign employees must be officially certified by the Revenue Department.
A copy of the monthly Social Security contributions and receipt for the most recent month for all Thai and foreign employees must be officially certified by the Social Security Office.
A copy of the audited financial statement for the previous accounting year acknowledged by the Department of Business Development (Sor Bor Chor 3 form) must be officially certified by the Ministry of Commerce.
A copy of the employee’s personal income tax return (PND 91) and receipt for the most recent year must be officially certified by the Revenue Department.

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.

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.

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IMPACT – MEDIUM

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.

Implementation timeframe: Immediate. The form is now required; specific penalties for overstays are expected to be announced by the end of the month.
Visas/permits affected: All visas and permits.
Who is affected: All foreign nationals seeking Thai visas and permits, as well as current holders seeking extensions.
Impact on processing times: None.
Business impact: There is potential impact if employees are banned from re-entering Thailand due to overstaying.
Next steps: The Immigration Bureau has submitted its proposal, which lists specific recommended penalties, to the Ministry of Interior. Approval is anticipated by the end of the month.

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.

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.