PKF Tax & Consulting Services (Thailand) Ltd. PKF Audit (Thailand) Ltd. Recent Developments in Visas and Work Permits in Thailand

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1 PKF Tax & Consulting Services (Thailand) Ltd. PKF Audit (Thailand) Ltd. Recent Developments in Visas and Work Permits in Thailand Mr. John Casella & Ms. Chutinun Wannapirun (17/11/2014) Right People. Right Size. Right Solutions.

2 Overview of Learning Objectives Obtaining a VISA for Thailand Immigration Bureau Fundamentals Changes to Visa Laws, Regulations & Enforcement Outlook for the Future Step/Timing for Work Permit & 1-year Visa Application Obtaining a WORK PERMIT in Thailand Labour Dept. Fundamentals Changes to Work Permit Laws, Regulations & Enforcement Outlook for the Future Case Studies Questions and Answers

3 Obtaining a VISA for Thailand Obtaining a VISA: Immigration Bureau Fundamentals Changes to Visa Laws, Regulations & Enforcement Outlook for the Future

4 Immigration Bureau Fundamentals Under Royal Thai Police Department, Ministry of Interior Governed by the Immigration Act 1979 Duties and Authorities Serves as intended strategy for the Royal Thai Police to plan, control, examine, recommend and suggest about immigration procedures according to related laws. Performs duties according to Criminal Procedure Law, Immigration Act, Alien Registration Law, Human Trafficking Act and other related criminal laws. Collaborates or supports other related agencies or upon assignment.

5 Immigration Bureau Fundamentals TYPES OF VISAS: 1. Tourist 3 common routes to obtaining Tourist Visa 2. Non-Immigrant Business Visa ( Non-B ) For business and employment purposes 3. Non-Immigrant Other Visa ( Non-O ) Retirement, accompany spouse/family, or voluntary services 4. Non-Immigrant Education Visa ( Non-ED ) For study, training, or internship in Thailand Diplomatic Visa / Official Visa / Courtesy Visa Non-Quota Immigrant Visa / Immigrant Visa / Transit Visa

6 Immigration Bureau Fundamentals 1. Tourist Visa: Exemption of Visa (i.e., no visa required) Only applicable for 49 countries (e.g., UK, Canada, HK, Australia, United States, France, Japan, Singapore, etc.) Issued at airports & land crossing Immigration Checkpoints 15/30/90 day durations, depending on country & checkpoint Visa on Arrival (i.e., visa application at arrival checkpoint) Only applicable for 28 countries (e.g., India, China, Taiwan, Russia, Eastern European countries, Saudi Arabia, etc.) Issued at airports & land crossing Immigration Checkpoints 15-day duration Issued at Royal Thai Embassies / Consulates 60-day duration

7 Immigration Bureau Fundamentals 2. Non-Immigrant Business Visa ( Non-B ): Requires sponsoring company/branch: Paid-up registered capital (Company 1-2 MB; Branch 3 MB) Ratio of Thai-national to foreign employees (std. is 4:1) Apply at Royal Thai Embassies/Consulates Can apply for extension in Thailand, upon Work Permit Must report earned salary and pay Personal Income Tax (PIT) in Thailand Possible to convert Tourist Visa to Non-B inside Thailand

8 Immigration Bureau Fundamentals 3. Non-Immigrant Other Visa ( Non-O ): Retirement Aged 50 years & over, without intention to work in Thailand Maintain deposit in Thai bank account at least THB800,000 Or purchase Condominium more than 10MB Accompany foreigner spouse/family (dependent) For spouse or family members accompanying breadwinner who is working, studying or living in Thailand Accompany spouse of Thai-national ( breadwinner ) For spouse supporting their Thai-national spouse/family Maintain deposit in Thai bank account at least THB400,000 Applicant participating in Voluntary Services in Thailand

9 Immigration Bureau Fundamentals 4. Non-Immigrant Education Visa ( Non-ED ): For study, training, or internship in Thailand Need letter of acceptance from academic institution or organisation Those wishing to study in private education institution, need pre-approval from Ministry of Education and registration certificate for enrolment of foreign students Allows attending seminar, training or internship, with recommendation letter from concerned organisation

10 Immigration Bureau Fundamentals Notification of staying in Thailand over 90 days Must be reported to Immigration Office (or Police Station, if Immigration Office is not available) or by Registered Mail 90 days counts from latter of: (i) latest arrival date in Thailand, or (ii) every 90 days from last report Applicable to foreigners with valid visa beyond 90 days (e.g., Non-Immigrant Visa) Notification must be made within 15 days before or after 7 days the date of 90-day expiry If foreigner stays over 90 days without notifying Immigration Bureau within set period: subject to fine of THB2,000.- If a foreigner who did not make the notification of stay over 90 days is arrested, they will be fined THB4,000.-

11 Immigration Bureau Fundamentals Paper Intensive - documents required: 1-yr B Visa Ext. List of documents for extension of 1-year Non-B Visa in Thailand 1st Year Renewal 1. Original Passport X X 2. Original Work Permit X X 3. Copy of Company Affidavit X X 4. Copy of Shareholders List X X 5. Copy of WHT returns (PND.1) (last 3 months) X X 6. Copy of VAT returns (PP.30) (last 3 months) X X 7. Location map of the company X X 8. Copy of Social Security returns (last 3 months) X X 9. Copy of Financial Statements (SBC.3) X X 10. Copy of CIT return (PND.50) X X 11. Copy of PIT return (PND.91) X 12. Copy of employer's I.D. Card/Work Permit X X 13. Photos of office and relevant employees X X 14. Marriage Certificate/Birth Certificate (family members) X X

12 Changes to Visa Laws, Regs. & Admin. 1) VISA RUN Memorandum Effective 13 August 2014: In-Out stamps will not allow to re-enter Thailand, if applicant cannot produce proper visa or proof of the purpose for their visit Memo focused only on citizens of12 MOU countries: Cambodia, HK, Vietnam, Macau, Laos, Mongolia, Russia, Brazil, Peru, Chile, Argentina, and South Korea In practice: Immigration Bureau is applying this rule to foreigners from all countries Consecutive In-Out applications will result in warning stamps for Royal Thai Embassies / Consulates &/or Immigration Officers

13 Changes to Visa Laws, Regs. & Admin. EXAMPLE OF WARNING STAMPS:

14 Changes to Visa Laws, Regs. & Admin. 1) VISA RUN Memorandum Effective 13 August 2014: In-Out stamps will not allow to re-enter Thailand, if applicant cannot produce proper visa or proof of the purpose for their visit Memo focused only on citizens of12 MOU countries: Cambodia, HK, Vietnam, Macau, Laos, Mongolia, Russia, Brazil, Peru, Chile, Argentina, and South Korea In practice: Immigration Bureau is applying this rule to foreigners from all countries Consecutive In-Out applications will result in warning stamps for Royal Thai Embassies / Consulates &/or Immigration Officers Special interview may be required; Immigration Officers might ask you to sign a Passenger Statement Form

15 Changes to Visa Laws, Regs. & Admin.

16 Changes to Visa Laws, Regs. & Admin. 2) Change in Visa Extension Regulations Effective 29 August 2014, changes to visa extension periods are a follows: Tourist Visa exemption can be renewed for 1-time extension no longer than 30 days from expired date (originally 7 days) Enrolment in non-school or informal education institutions will be extended only for 90 days and total permitted period shall not exceed one year from date of entering Thailand Performing duties in NGO, Association, or foreign chamber of commerce (without certification letter by the relevant government dept.) will be extended only for 90 days and total permitted period shall not exceed one year from date of entering Thailand

17 Changes to Visa Laws, Regs. & Admin. 3) No Right to Appeal Visa Extension Rulings Effective 29 August 2014, pursuant to changes in the visa extension periods foreigners have no right to appeal visa extension rulings for reconsideration: Typically, extension cases are not approved due to insufficient supporting qualification Foreigner will get temporary extension for 7 days to leave Thailand Foreigner cannot appeal visa extension case for reconsideration

18 Changes to Visa Laws, Regs. & Admin. 4) Change in OVERSTAY Rules Effective 29 August 2014, changes to visa extension periods rules include: (i) fine of THB500 per day up to THB20,000 &/or (ii) jail term of up to 2 years &/or (iii) bans In cases where the foreigner voluntarily comes forward In cases where the foreigner is arrested Overstay Period over 90 days over 1 year over 3 years over 5 years less than 1 year over 1 year Banned Period (forbidden from reentering Thailand) 1 year 3 years 5 years 10 years 5 years 10 years

19 Changes to Visa Laws, Regs. & Admin. 5) Change in 1-year Visa Extension in Thailand, upon obtaining/renewing your Work Permit Stricter enforcement of exist rules Foreigner must appear before Immigration Officer for picture Immigration Officers perform 4 steps instead of 2 steps (1) Initial review by Police Officer (2) Wait for Police Captain to interview and approve application (3) Wait for Police Officer in step 1 to take a photo (4) Wait for Police Captain to sign on passport copy

20 Outlook for the Future Expectation that existing rules will continue to be enforced more strictly Time required to proves visas and visa extensions will continue to take longer due to closer document scrutiny No indication of streamlining processes To optimise wasting time Executives at Immigration Bureau, we recommend sending Messenger ahead of HR staff to wait in queue

21 Step/Timing WP & 1-yr Visa Application Step 1: Apply for Non-Immigrant B Visa at Royal Thai Embassy or Royal Thai Consulate in a foreign country Step 2: Approx. 1-3 days travel abroad Also, possible to convert Tourist visa to Non-B inside Thailand (Approx working days) Enter into Thailand and receive a 90-day Non-Immigrant B Visa stamp into your passport Step 3: Apply for Work Permit with the Ministry of Labour Approx. 7 working days for approval

22 Step/Timing WP & 1-yr Visa Application Step 4: Receive Work Permit Book at the Ministry of Labour Step 5: Must appear in from of Ministry of Labour Officer when receiving a new Work Permit Book Expatriate starts working legally with the Company Must report earned salary in Thailand Minimal monthly salary between THB25,000 THB50,000 depending on nationality Must declare and pay any Personal Income Taxes in Thailand

23 Step/Timing WP & 1-yr Visa Application Step 6: The Company submits Employee Personal Withholding Tax return (PND.1) to the Thai Revenue Department Provides documented support of compliance with: (i) the minimum salary for the expatriate and (ii) the minimum number of Thai staff required according to the Immigration Bureau (e.g., 4 Thais : 1 Foreigner) Step 7: Wait until the Non-Immigrant B Visa in your passport is less than 30 days from expiry Approx. 60 days

24 Step/Timing WP & 1-yr Visa Application Step 8: Apply for 1-year Non-Immigrant B Visa extension with the Immigration Bureau in Thailand Step 9: Visa extended for 1 month before 1-year visa approval Step 10: 30 days (Officers need to review above application docs.) Apply for remaining 11-month Non-Immigrant B Visa extension and apply for Multiple Re-entry Permit Step 11: Obtain final Non-Immigrant B Visa approval from the Immigration Bureau

25 Obtaining a WORK PERMIT in Thailand Obtaining a WORK PERMIT: Labour Department Fundamentals Changes to Work Permit Laws, Regulations & Enforcement Outlook for the Future

26 Labour Department Fundamentals Work permits are granted by the Alien Occupation Division of the Employment Department, under the Ministry of Labour and Social Welfare In order to legally work in Thailand, a foreigner must have a Work Permit Definition of work under the Working of Aliens Act, B.E (2008) is very broad: engaging in work by exerting energy or using knowledge whether or not in consideration of wages or other benefits Covers any work-related activity, permanent or temporary Arrests of foreigners for Work Permit violations do occur, particularly in contentious situations

27 Labour Department Fundamentals Every work permit must be sponsored by a Thai national, entity or organization registered in Thailand. Sponsoring employer in Thailand must comply: Minimal Paid-up Registered Capital (Company 1-2 MB; Branch 3 MB) Ratio of Thai-national to foreign employees (std. is 4:1), except in cases of Branch, BOI and IEAT Typically, cannot exceeding 10 foreign employees Standard Work Permit has a duration of 1 year In some cases of Top Management in BOI and IEAT companies, Visa and Work Permit duration can be 2-3 years If more than 1 employer: Foreigner must register multiple employers in their Work Permit

28 Labour Department Fundamentals Paper Intensive - documents required for Work Permit: List of documents for applying work permit New WP Renew WP 1. Original Passport X X 2. Original Work Permit X 3. Original Medical Certificate X X 4. Evidence of work experiences & education X 5. Copy of Company Affidavit X X 6. Copy of Shareholders List X X 7. Copy of VAT Registration (PP.01) / (PP.09) X 8. Copy of VAT returns (PP.30) (last 3 months) X X 9. Location map of the company X 10. Copy of Social Security return (latest month) X 11. Copy of Financial Statements X X 12. Copy of PIT return (PND.91) X 13. Copy of employer's I.D. Card/Work Permit X X

29 Labour Department Fundamentals Urgent Work Permit: Foreign nationals engage in necessary and urgent work for a period of not exceeding 15 days need an Urgent Work Permit before commencing with such work Thus, limited to work that must be done immediately, failing which damage will be suffered Application for Urgent Work Permit (WP.10) should be within 3 days upon entry into Thailand with Tourist Visa possibly to be issued WP.10 within the same day Cannot securing a back-to-back WP.10s Required gap of 45 days (i.e., applications for WP.10 must be at least 2 months apart) No more than 2 WP.10s per foreigner in a calendar year

30 Labour Department Fundamentals Maximum penalty for Foreigner without a Work Permit: Increased from 3 months to 5 years imprisonment These penalties can be waived, if foreigner agrees to pay a fine (of up to THB100,000) & immediate deportation Maximum penalty for Employer without a Work Permit: Fine of THB100,000 Baht per foreign employee Once foreigner concludes work (Work Permit Book is returned): Immigration Bureau will cancel the foreigner's visa Foreigner must leave Thailand within 24 hours Foreigner eligible for a 7-day visa extension

31 Changes to WP Laws, Regs. & Admin. Office of Council of State issued Opinion No. 152/2556 in February 2013 (further clarified as of 8 July 2014) that Work Permit NOT required for: Attending a conference or seminar Attending an exhibition or trade show Attending a business visit or business negotiation Attending an academic lecture Attending a training course or technical seminar Purchasing goods at a trade show However, organizers and participants in above events are still required to obtain a Work Permit

32 Changes to WP Laws, Regs. & Admin. Office of Council of State issued Opinion No. 152/2556 in February 2013 (further clarified as of 8 July 2014) that Work Permit IS REQUIRED for: Organizing/Presenting at a conference, seminar, exhibition or trade show Organizing/Presenting in a business visit or business negotiation Presenting at an academic lecture, training course or technical seminar Purchasing goods at trade fair as employee or contractor for a trade fair organizer for purpose of trade fair to occur Also, foreigners cannot participate in BoD Meetings or Shareholder Meetings in Thailand without a Work Permit

33 Outlook for the Future 2 changes in Foreigners Workers Act (February 2008) are yet to be promulgated: 1. Deportation Fund to cover the costs associated with deportation of foreigners from Cambodia, Laos, Myanmar, and Africa excluding South Africa (paid by employers) 2. Extending the maximum time period for 'regular' Work Permits from 1 to 2 years Introduction of Asean Economic Community (AEC) likely to introduce slow and gradual relaxation/streamlining of Work Permit rules, starting 2016 and beyond.

34 Case Studies CASE STUDIES

35 Questions & Answers QUESTIONS & ANSWERS:

36 Our Contact Please contact us: PKF Tax & Consulting (Thailand) Ltd. PKF Audit (Thailand) Ltd. No. 98 Sathorn Square Office Tower, #2808, 2812, 28 th Fl, North Sathorn Road, Kwaeng Silom, Khet Bangrak Bangkok Tel.: Fax:

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