Integrity Legal

Archive for the ‘Thailand Business’ Category

30th November 2022

Recent Youtube Updates

Posted by : admin

For those unaware, this firm has a YouTube channel, please see links below to the latest updates:

https://www.youtube.com/watch?v=8AvnZJQzLDE

https://www.youtube.com/watch?v=WQTnMTB-00U

https://www.youtube.com/watch?v=dyTw2FE9LtU

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5th May 2022

SCAM ALERT!

Posted by : admin

It appears there is some sort of scam purporting to be our firm (or a firm so similar to ours as to be difficult to differentiate). Be advised, there is no Barrister Leonard M. Hans working in our firm. Further, our firm operates in Thailand exclusively, and although we process cases in the USA we have no office presence outside of Thailand. Please note, we do not use this email address: INTEGRITYLEGALCHAMBERS@AOL.COM there is also no email address from our firm using: barristerbenjamin1961. There is also no email address intergritychamber@gmail.com nor info.thaiintegrity.legal@gmail.com affiliated with our firm.

The only email addresses from our firm would be from info@legal.co.th or info@integrity-legal.com or any email with an affix of @legal.co.th or @integrity-legal.com. Anything else is not an address affiliated with our firm.

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22nd November 2021

As Thailand’s recent reopening continues unabated the Thailand Pass appears to pose issues for some wishing to travel to Thailand. The following was quoted from the official website of the Bangkok Post:

Some hotels are deceiving visitors from overseas, taking room reservations but omitting transport from the airport and Covid-testing, which means they must buy a new package on arrival or be rejected. Apisamai Srirangson, a spokeswoman for the Centre for Covid-19 Situation Administration, said on Monday that some hotels misled visitors and booked them only for the room. The charge did not include a limousine service from the airport to the hotel or the RT-PCR Covid-19 test on arrival, even though both were required as conditions of entry on a Thailand Pass…Thailand Pass replaced the certificate of entry (CoE) on Nov 1 when the kingdom reopened to visitors. It requires visitors to have been fully vaccinated, have a clean RT-PCR test within 72 hours before boarding their flight and have US$50,000 health insurance.

Clearly, not all of the “bugs” have been worked out of the system as some of these issues may have been due to the vast number of technical issues associated with the increased logistics associated with traveling to Thailand under current conditions.

Meanwhile, there are rumors circulating that Thailand may soon see a reopening of the nightlife venues as the country moves forward. Prior announcements have stated that Thailand’s nightlife sector (bars, pubs, and entertainment zones) will not reopen until mid-January at the earliest, but there is now talk among some government officials that things may reopen sooner than that. However, an official announcement remains to be seen.

Recent policy changes with respect to retirement visas (and indirectly, reentry permits) may be the cause of consternation among the expat retiree community. Insurance requirements for all Thai visas except business visa holders has been a major topic of discussion recently. Meanwhile, it appears on more than one Thai consulate website that the minimum financial requirements for Thai retirement visas is increasing. For example, on the Thai Consulate in Los Angeles‘s website it now appears that 1.2 million baht will be the requirement in a bank account to obtain a Thai O-A retirement visa. In the past, the requirement has long been 800,000 THB. Concurrently, the same website is stating 100,000 THB in pension income would also prove sufficient, where once 65,000 THB was considered adequate. After further review, the Thai Consulate in Sydney‘s website showed similar information. What precisely this means for those looking to undertake the Thai retirement visa process remains to be seen.

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1st September 2021

The lockdowns in Bangkok and other highly populated areas of Thailand appear to be abating as it has recently been decreed that certain retail businesses may reopen while restaurants and other eateries may again serve dine-in customers from today onward. There seems to be an implication that further easing will be forthcoming, but we have seen that attitude before only to see things suddenly reverse. Hopefully, the business community in Bangkok and Greater Thailand has finally come through the worst of these rather stringent measures and things can move on.

Meanwhile, various destinations in Thailand are attempting to “Move On“. Notably, Phuket has implemented initiatives in the “Phuket Sandbox” program to allow travelers in that location to travel to other destinations after an initial 7 days on the island in the “7+7” program. Although this is definitely good news tourism numbers remain far below normal and therefore it remains to be seen how many people will actually avail themselves of this opportunity. The sandbox initiative has not garnered the tourism interest that many had hoped, but with high season coming this could change. It is worth noting that a number of non-immigrant Thai visa holders have availed themselves of the sandbox scheme as it is viewed as less cumbersome compared to dealing with 14 days of quarantine when traveling to other parts of Thailand.

It is notable that Thailand is one of the only jurisdictions in Southeast Asia which is permitting tourists to enter the country. Not to mention non-immigrant visa holders (most of whom were completely barred from reentry last summer). That stated, issues still arise for foreign nationals in Thailand as there are those who have problems either maintaining their status due to unforeseen work issues or no longer meet the requirements of their lawful status. Under such circumstances it is optimal to avoid falling into overstay and attempt to obtain a Thai visa conversion in order to remain in the Kingdom.

American immigration is not moving as quickly as was the case prior to 2020. That stated, things are moving more quickly compared to the situation in 2020. Although appointments for non-immigrant visas to the USA such as tourist visas are difficult to come by and even obtaining an appointment for a K-1 visa interview can be difficult. There are those who hope that a change in administration in the USA will result in concrete changes to the American immigration apparatus, but any improvements remain to be seen.

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15th July 2021

As the first two weeks of the “Phuket Sandbox” scheme have elapsed, it appears that program is gaining increasing momentum in terms of tourist interest. Although the program has not been without issues as recent arrivals testing positive for COVID-19 have created situations where Alternative State Local Quarantine measures have been undertaken. That stated, the overall program seems to be proceeding smoothly and offers a glimmer of hope for the Thai tourism industry. It should be noted that the Phuket Sandbox is not reserved for tourists, it is possible for those with a non-immigrant visa to use the Phuket Sandbox as well.

Meanwhile, the island resort of Samui is reopening in a limited capacity to foreign tourists. The Samui Sandbox, or what some have dubbed the Samui corridor (due to the sealed pipeline of travelers transitioning through Bangkok), has commenced in recent days although there seems to be less than optimal demand for this program compared to its Phuket counterpart. To quote directly from a recent article titled “No foreign tourists on first day of Samui reopening” in The Nation:

Only 11 foreigners – all members of the media – will take the Bangkok Airways flight from Bangkok to Samui on Thursday, according to the Koh Samui Tourism Promotion Association. “We do not expect a lot of travellers to visit Thailand in the third quarter this year as the rise in the country’s daily Covid-19 cases would affect their confidence,” association chairman Ratchaporn Poolsawas said on Wednesday. “However, what we can do is start tourist operations in line with standard procedure in a bid to stimulate the country’s tourism.”

Clearly, demand for the Samui project is not as robust as some might hope. However, as the weeks go by the Samui program may prove to be a desired destination for future tourists. Also, it may prove to be an alternative to the Phuket Sandbox in a hypothetical situation where the Phuket program must be rolled back even though this does not appear to be a likely possibility as of the time of this writing.

While positive news abounds for Phuket and Samui, Bangkok remains under severe lockdown conditions presumably throughout the remainder of July. Restaurants cannot provide dine-in services, alcohol service of all kinds are banned, shopping malls are closed, and the city remains in a de facto state of severe lockdown. When exactly this will end remains to be seen as calls from within Thailand and in other jurisdictions are being made for a paradigm shift in the way pandemic response is undertaken with some arguing that the containment strategy is no longer viable especially in light of the devastating economic impact these measures have had and which will presumably continue should these policies continue to be enforced.

While the American Embassy in Thailand continues to provide US visa interviews and other routine services (albeit in a rather truncated manner) some have argued that the Embassy should provide vaccinations for expats Americans. As of the time of this writing, the Embassy has stated this service will not be provided and it seems unlikely this will change any time soon.

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2nd May 2020

The past 6 weeks have been very eventful in terms of the response to the COVID-19 (or Coronavirus) lock down in Thailand. This crisis has also had a significant impact upon the American visa process. By way of an update, the Thai government has recently announced an easing of restrictions associated with the lock down of business and social interaction in Thailand. It now appears that as of May 3rd, small eateries, parks, hair salons, stores selling certain retail as well as electronic goods, and pet shops will be allowed to reopen. Thai government officials have announced that further phased reopening measures will be implemented in coming weeks should circumstances permit. Concurrently, it was initially announced that the ban on the sale of alcohol in Thailand would be extended throughout the month of May. There was some speculation that a “grace period” would be permitted on Mat 1st and 2nd to allow the public time to “stock up” on alcohol products in anticipation of further restrictions over the forthcoming month.

Shortly after these predictions and the announcement that the ban on alcohol sales would continue, it was announced that retail alcohol sales could recommence beginning May 3rd. Further, it appears that those eateries which maintain an alcohol license and usually sell alcohol in the course of their day-to-day business will be permitted to sell alcohol on a “take-away” basis. Therefore, for the forthcoming days small restaurants and other venues will be reopened to the public and life in Thailand appears to be normalizing somewhat. Notwithstanding these measures, restrictions on pubs and entertainment establishments remain.

While all of this is unfolding in Thailand, in the USA the US immigration system appears to be preparing for further delays associated with the processing of visa cases. The following announcement from USCIS recently came to this blogger’s attention:

On March 18, U.S. Citizenship and Immigration Services temporarily suspended routine in-person services to help slow the spread of coronavirus (COVID-19). USCIS plans to begin reopening our offices on or after June 4, unless the public closures are extended further.

In prior announcements it had been noted that May 4th would be the presumptive date of reopening. It now appears that there will be at least another month delay for in-person services with USCIS. At the same time, the new Immigration Ban remains in effect although it is unlikely to have any impact upon those seeking a K-3 visa, CR-1 visa, IR-1 visa, or K-1 visa from Thailand as the ban specifically excludes spouse visas and only pertains to immigrant visas. Therefore, as a fiance visa is not, by definition, an immigrant visa, the provisions this new ban do not apply to fiances of American citizens. However, notwithstanding the fact that the immigration ban does no directly impact most family based visas from Thailand it is effectively a moot point for the immediately foreseeable future due to the fact that the Immigrant Visa Unit and the Non-Immigrant Visa Unit at the US Embassy in Bangkok are not currently holding visa interviews nor are the issuance immigrant and non-immigrant visa as they remain closed due to the coronavirus. We, in this office, are currently looking at the USCIS presumed reopening date as the best indication of when it seems prudent to presume that the Embassy will reopen for interviews. That stated, the ultimate date of reopening remains to be seen, but we will try to keep you up to date on this blog.

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4th April 2020

It recently came to this blogger’s attention that the Thai government has halted all incoming flights from overseas to Thailand. To quote directly from a recent article in Thai PBS World:

“[T]he prime minister wants to see stringent measures imposed on overseas arrivals for the period between April 2-15.  The Foreign Ministry has been tasked to find out ways to implement the directive from the prime minister.”

Further, in another article from The Nation, the following was noted:

“Taweesin Visanuyothin, spokesman for the Centre for Covid-19 Situation Administration, said Prime Minister Prayut Chan-ocha has told the Foreign Ministry to issue a new directive prohibiting new arrivals.”For the immediately foreseeable future, it appears that it will not be possible for anyone to enter Thailand by air.

Clearly, the Thai government has deemed the COVID-19 issues of a seriousness that it warrants across the board restriction of incoming flights. That stated, there appears to be a end date for these restrictions on the horizon. In a further article from the Bangkok Post:

“All passenger flights have been banned from landing in the country to curb the outbreak of the new coronavirus, the aviation agency said on Friday. The ban came into effect on Saturday morning and will run until the end of Monday, the Civil Aviation Authority of Thailand said in an order published late on Friday.”

Whether the government decides to extend this restriction on in-bound flights due to Coronavirus concerns remains to be seen. However, it seems logical to infer that if the restriction is lifted and in-bound flights are allowed to come to Thailand, the previously enacted restrictions on foreigners traveling to Thailand is likely to remain in effect over the medium term. To quote directly from the aforementioned Civil Aviation authority of Thailand:

With reference to the declaration of state of emergency in Thailand on 25 March 2020, the Civil Aviation Authority of Thailand hereby issues travel advisory to passengers planning to enter Thailand as follows:

1. Passengers or persons shall be permitted to enter, Transit or Transfer Thailand through international airport only if they fall under one of the following categories:

(a) Being in the situation or a person exempted by the Prime Minister or Permanent Secretary of Ministry of Foreign Affairs, under certain conditions and prescribed time period

(b) Carriers of necessary cargoes, but required prompt exit after the mission is completed

(c) Pilot-in-command, and crew members of the flight entering Thailand with clear schedule to depart

(d) Persons on diplomatic or consular mission, or under International Organizations, representatives of the government performing their duties in Thailand or other persons or international agencies that the Ministry of Foreign Affairs gives permission, and their families. In this case, certificate of entry to the Kingdom issued by Ministry of Foreign Affairs is required.

(e) Non-Thai nationals with work permit or who have been granted permission from Thai government agencies to work in Thailand (Smart Visa only)

(f) Thai nationals with certificate of entry to the Kingdom issued by Royal Thai Embassy or Royal Thai Consulate in their country of residence certifying that they are Thais returning to Thailand, and a Fit to Fly Health Certificate.
2. The persons in (d) (e) and (f) must have Fit to Fly Health Certificate issued no more than 72 hours before traveling.
3. Passengers or persons permitted to enter Thailand shall strictly comply with disease prevention measures imposed by the government.
4. The immigration officers have the power to deny the entry of Non-Thai nationals who have been tested positive for COVID- 19, or under the suspicion of being infected or who refuse to undergo such test.
5. All previous Notifications of CAAT become ineffective.

With limited exception, the vast majority of foreigners are not going to be permitted to enter Thailand in the upcoming weeks. The vast majority of those who are permitted to enter the Kingdom are likely to be Thai Work Permit holders. Bearing that in mind, it is notable that foreign nationals in Thailand maintaining work permit as well as Thai business visa status are likely to find unforeseen issues in renewing their work permits in coming months. This will likely be due to the unintended consequences of all of the lay-offs, furloughs, terminations, and voluntary reductions of work hours for Thai employees working in the Thai business sector.

In order to maintain a Thai work permit and business visa it is required that a Thai company maintain a 4-to-1 ratio of Thai employees to foreign employees. For those foreigners using a Thai marriage visa as a platform for maintaining lawful status in Thailand as well as employment authorization the ratio of Thai employees to foreign employees is 2:1. With this in mind, the small business sector of Thailand is likely to see a significant contraction of its workforce in the second and third quarter of 2020. As Thai employees are furloughed, terminated, or resign (sometimes in order to be eligible for newly created Thai unemployment benefits) it is likely that this will have a direct impact upon the Thai/Foreign employee ratio. If the ratio of Thai to Foreign employees is not maintained within a Thai business organization, then an application for a Thai business visa extension or Thai work permit renewal may prove impossible. Therefore, those businesses, small and large, employing foreigners in Thailand should keep a sharp eye on their labor force if they wish to maintain their foreign employees’ lawful status. This can be an especially acute issue for self-employed foreign nationals in Thailand who are using their Thai limited company as a platform to maintain their status. Those in the precarious position are strongly encouraged to seek the advice and counsel of legal professionals experiences in Thai corporate compliance, accounting, staffing, immigration, and labor issues

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21st November 2019

As the US-China trade tensions continue (notwithstanding some hope that a trade deal may soon be reached) many foreign businesses in China are looking to relocate to other jurisdictions. For example, in a recent article is was noted that German businesses in China are seeking alternatives to China for certain types of manufacturing. Meanwhile, American businesses, which are presumably the most impacted by the trade war, are also taking steps to alter their supply chains in order to optimize their business structures under current circumstances.

While there are many jurisdictions in Asia which may appear accommodating to American business, this blogger would argue that Thailand is the best jurisdiction for American business in Asia. First, Thailand boasts a long history of friendly relations with the United States. As America’s oldest ally in Asia Thailand has been conducting business with the United States for years. Concurrently, the United States and Thailand share a multitude of bilateral agreements which can operate to the benefit of American businesses in the Kingdom. Most notably, the US-Thai Treaty of Amity provides “national treatment” to American businesses in Thailand. This allows American business to be treated in the same manner as Thai businesses operating in Thailand. As a practical matter this can provide substantial benefits to American businesses in Thailand. For example, such enterprises are not subject to the provisions of the Foreign Business Act in Thailand as such operations are treated as Thai. Therefore, those companies do not need to have the same type of Thai majority shareholding structure that other similar operations need that are of different nationality.

Another substantial benefit of conducting business in Thailand under a Thai Amity Treaty Company is an interpretation of relevant American law which argues that Thai Amity Treaty companies are not “controlled foreign corporations” and therefore not subject to the new tax liabilities created under the legislation colloquially referred to as Trump Tax. Due to the domestic nature of American Treaty laws, the organization and certification of an American company under the Amity Treaty in Thailand could be construed as a the creation of a domestic corporation thereby negating the enforcement of laws creating liabilities for Americans owning foreign corporations.

If an Amity company is deemed to be “domestic” rather than “foreign” this, in and of itself, could be very beneficial for an American company in Thailand. This benefit could be compounded by the exemptions regarding taxation created under the Double tax agreement between the United States and Thailand. Furthermore, those companies operating in Thailand that receive benefits, including tax holidays, from the Thai Board of Investment (BOI) could see themselves in a very advantageous position overall. In summation, for the reasons noted above and many more it should be noted that Thailand is a jurisdiction which should not be overlooked when making a decision as to which jurisdiction a corporation should shift to for logistical and operational purposes.

TO COMPLY WITH U.S. TREASURY REGULATIONS, WE ADVISE YOU THAT ANY U.S. FEDERAL TAX ADVICE INCLUDED IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, TO AVOID ANY U.S. FEDERAL TAX PENALTIES OR TO PROMOTE, MARKET, OR RECOMMEND TO ANOTHER PARTY ANY TRANSACTION OR MATTER.

THE ABOVE INFORMATION SHOULD NOT BE CONSTRUED AS SPECIFIC LEGAL ADVICE NOR RELIED UPON AS SUCH. THOSE INTERESTED IN THIS TOPIC SHOULD OBTAIN PROFESSIONAL ADVICE REGARDING THEIR SPECIFIC SITUATION.

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22nd September 2019

Integrity Legal has been providing legal services in Bangkok, Thailand for 12 years. In that time, the legal system in Thailand along with the Thai Immigration and tax collection systems have evolved. As a result, accounting and issues pertaining to corporate compliance are having an increasingly direct impact upon immigration matters for foreign nationals who own or work in companies in Thailand. For example, maintenance of payroll records and records contributions to Thai Social Security can be critical for those seeking Thai work permits and Thai business visa extensions. Meanwhile, Thai Immigration initiatives which would seem to only be relevant in a personal context can have ramifications in a corporate context. For example, a foreign national working in a Thai company could see their application for a business visa extension rejected due to failure to file a TM30 form providing relevant information regarding address location.

Due to the increasing complexity of Thai law and regulatory enforcement, a more holistic approach to business incorporation, visa extension, work permit application, accounting, payroll maintenance, and corporate services is necessary. For this reason Integrity Legal is proud to announce the foundation of Integrity Services. Integrity Services provides corporate maintenance services, accountancy services, and also tax advisory services (in both a Thai and an American context). Integrity Services is managed by a Thai accountant with fluency in English. The firm will also provide consultation and tax advisory services from an American tax attorney where necessary.

Integrity Services can provide ongoing support to businesses in Thailand with a special emphasis upon companies with foreign ownership or management. Concurrently, with recent changes to the American tax laws, advisory services from an American tax attorney with experience in Thai corporate matters can provide a great deal of benefit to firms with American stakeholders or management. Meanwhile, Integrity Services will provide assistance to clients of Integrity Legal, where necessary, in a seamless manner. By blending standard legal services with, corporate compliance, immigration, and accounting the teams of both Integrity Legal and Integrity Services can provide comprehensive assistance to our clients in all matters pertaining to business in Thailand.

Contact us today to learn more about how your business could be improved with Integrity.

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15th July 2019

Issues surrounding the decline in tourism have been of increasing concern in Thailand over the past months. Many factors seem to be at play when discussing the issue of the tourism downturn in Thailand. For instance, fallout from the US-China Trade War may be playing an integral role in the declining number of tourists coming to Thailand since the slowing of the Chinese economy has knock-on effects regionally. Specifically, the decreased purchasing power of Chinese consumers is causing a decrease in demand for travel packages to Thailand.

The China-specific issues notwithstanding, many have pointed to the increasing strength of the Thai baht as a cause of concern. Budget conscious travelers to Thailand are being put off by the relative increase in cost to travel to the Kingdom as a result of the appreciating local currency.

Finally, some of the decreasing tourist numbers could be attributed to the increasingly stringent immigration policies being placed upon ostensible tourists. In the past, there were a number of individuals who opted to live in Thailand utilizing tourist visas or 30 day stamps. These individuals who have been tabulated as “tourists” in the immigration records, but the reality was that these people were using such visas to live in the Kingdom. New enforcement measures have been put in place and new policies promulgated which are designed to discourage such behavior. For example, where once overstay in Thailand was considered a rather trivial offense which resulted in a relatively nominal fine, especially for those who overstayed their visa for a prolonged period. Now overstay can result in deportation and a prolonged registration on the Thailand Blacklist. Meanwhile, Immigration officers at border checkpoints have been turning away prospective entrants to Thailand if they are using multiple 30 day stamps in one year or are attempting to remain for a prolonged period of time in the Kingdom on single entry or multiple entry tourist visas.

Notwithstanding the above issues, Thailand remains one of the best jurisdictions in Southeast Asia to do business. Proof of the increased interest in Thailand is the fact that Foreign Direct Investment in Thailand has increased by over 200% in 2018. This increase in FDI may be attributed to the fact that the benefits which can be accorded to companies looking to do business in Thailand under the Board of Investment (BOI) are substantial and can even include prolonged tax holidays. Meanwhile, Thailand boasts the best infrastructure in the region and Bangkok has seen tremendous real estate growth as well as infrastructural improvement including, but not limited to, the expansion of the rail system within the city. High speed rail systems are likely to be brought online in coming years as well. Clearly, although Thailand is seeing some decline in terms of tourism it is increasingly apparent that business travelers and investors are choosing the Kingdom to conduct business.

It should be noted that along with all of the above developments, Thailand remains arguably the best jurisdiction for Americans doing business in the region as Americans can enjoy the benefits of the US-Thai Treaty of Amity. This agreement allows Americans citizens and American companies “national treatment” when doing business in the Kingdom thereby permitting 100% ownership of American enterprises operating in Thailand. This coupled with Thailand’s infrastructure and business environment makes Thailand an especially welcoming destination for American investment.

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