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ResourcesCorporate and Tax AdvisoryThailand Tax LawAmended Personal Tax Documentation and Thai Work Permit Application

Amended Personal Tax Documentation and Thai Work Permit Application

Transcript of the above video:

As the title of this video suggests, we are discussing Work Permits here in the Kingdom of Thailand and specifically we are discussing personal tax documentation. 

What are we talking about here? Well in Thailand is like anyplace else. There is a personal tax regime. There is an income tax here in Thailand and those foreigners who are in Thailand in work authorized status need to go ahead and deal with paying some level of tax. It is a progressive tax system so one's salary will vary depending from person to person depending on one's salary how much tax needs to be paid but the purpose of this video is to go ahead and delineate why it is important to maintain one's personal taxes assiduously because one of the things that is analyzed when looking at renewing a Work Permit, when the Labor Department looks at renewing a Work Permit, is one's prior tax history. If one is remiss in properly filing their personal taxes, if they filed them late, if they didn't file them at all or if they filed them incorrectly, this could lead to a Work Permit application being denied and in some cases where a tax filing has been made and later amended, this is viewed askance by the Labor Department Officers because it is viewed as possibly pretextual or pretensive on the part of the applicant in that they basically are just putting together documentation and amending it in order to meet the requirements and they don't really like that.

In the past there was kind of a cavalier attitude toward Accounting and Corporate Services, Corporate Maintenance, because Immigration and Labor Department Officers, you know if you had a problem with a document you basically just leave amend it and come back. That is not how things are really working these days as documentation pertaining to work permit extension, work permit application needs to be correctly done at the outset and if it is not and an amendment is made and you try to go ahead and apply anyway with amended documentation, in many cases we have seen people where they simply just deny it. They say "no, you need to leave the country and restart because you are out of status", and again personal income tax is an important aspect of the Thai tax regime here so they view it as an important thing to be keeping on top of I should say and again falling into this old paradigm of "well I can just amend it later!" that's not a good idea.

One of the reasons we formed the Corporate Services and Accounting Division here in the firm is because Corporate Services and Accounting like for example tax filings, have ramifications in an Immigration and Work Authorization context and for that reason a company or an individual needs to be very assiduous in keeping track of their tax documentation in order to forestall having problems in applying for a work permit or a work permit extension down the road.