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Integrity Legal

Posts Tagged ‘Thai Visa’

2nd October 2009

In Thailand, a major concern for expatriates, tourists, and permanent residents is banking. Many people need to set up Thai bank accounts in order to transact personal business in the Kingdom or for international financial purposes. Unfortunately, like many things in Thailand, setting up a Thai bank account can be somewhat difficult, especially for a new arrival trying to establish themselves. In Thailand, each financial institution has its own unique set of rules and regulations imposed upon those who wish to set up an account. Compounding this byzantine situation is the fact that rules and requirements depend upon the type of account one wishes to set up. Business accounts, Foreign Currency accounts, personal savings accounts, and checking accounts all have differing documentation requirements.

For those entering the Kingdom on a Thai visa exemption, opening a bank account in Thailand may prove difficult as many banks are now requiring that an applicant have at least a long term non-immigrant Thailand visa. Some banks take their due diligence efforts one step further and require that a prospective account holder provide a Thai work permit. The practice of requiring a Thai work permit seems to have become a common requirement for nearly all Thai banks in recent months.

There are others who wish to set up Thai corporate bank accounts in the Kingdom, these people are often either the Managing Director of a Thai company or they are thinking of setting up a Thai company. In either case, a great deal of documentation must be submitted in order to obtain a Thai bank account for a Thai corporation. Even where a corporate account can be established, a personal savings account may be necessary if one wishes to have a debit card. As a general rule in Thailand, banks will not issue debit cards for corporate checking accounts. Credit Cards are also notoriously difficult to obtain for corporations as well as individuals who are not Thai Citizens. It is possible to obtain a Thai Credit card, but in many cases the requirements are extremely stringent.

An issue ancillary to Thai banking is Thai mortgages. Obtaining a Thai mortgage can be very difficult for a foreigner. For those wishing to buy a Thai condo it must be remembered that funds for purchase must be brought into the Kingdom from abroad. How this requirement interacts with issues surrounding the Thai mortgage likely is dependent upon the unique facts of the situation.

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29th September 2009

There are many expatriates living in the Kingdom of Thailand who opt to run their own business(es). In cases where the expat is not married to a Thai national, then it is highly likely that a Thai business visa will be used in order to remain in the Kingdom long term. A somewhat tongue-in-cheek question that often arises in the context of Thai business is: why do I need to pay my taxes? Although no one actually expects to be granted some sort of tax amnesty, the fact remains that no one really relishes paying taxes. It can be even more difficult when one takes into account the fact that Thailand is predominantly a cash based economy. However, for expats basing their visa status upon small business ownership in the Kingdom, visas and taxes are inexorably linked.

Each year, each and every limited company in Thailand must submit an up-to-date balance sheet reflecting the profits and losses for the previous fiscal year. The managing director of a Thai limited company can do themselves a great disservice by failing to submit a yearly balance sheet as this can be punishable by strict sanctions and fines. Thailand, like many nations, imposes a corporate tax upon nearly all legal entities operating within the jurisdiction of the Kingdom of Thailand.  Further a corporate witholding tax is required for certain transactions.

In Thailand, the most well known method of taxation is the Value Added Tax (aka VAT). The government places a value added tax of seven percent upon most goods and services. The consequences for a business that fails to pay these taxes can be severe.

The reader is likely asking themselves: “Ok, I understand, Thailand has taxes, but how does this effect my Thai visa?” One of the major concerns of Thai Immigration officers is that those present in the Kingdom of Thailand on a business visa will use a “shell company,” in order to maintain Business visa status. In order to forestall such chicanery, Thai Immigration routinely looks at the tax records of companies that employ foreigners. This mostly occurs when the foreign national attempts to obtain a visa extension or a visa extension renewal. This type of scrutiny can also occur at the Ministry of Labour when a foreigner submits an application for an extension of his or her Thai work permit. In cases such as this, it is always better to have a good record of tax payment as this can greatly facilitate the quick issuance of a Thai visa or work permit.

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15th September 2009

Thailand Work Permit Extension

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For those present in Thailand on a Thai business visa, or another type of Thai visa (except for the F visa), it is incumbent upon the foreigner to obtain a Thai work permit if he or she wishes to take up employment in the Kingdom of Thailand. That being said, Thai work permits are generally only granted with a one year validity. There are exceptional instances where this is not the case. For example, BOI companies can get work permits for their employees that have a validity of two years. In any case, if a foreign national has a work permit in Thailand and wishes to work past the permit’s initial validity, he or she will need to obtain a Thai work permit extension.

A Thai work permit extension is somewhat similar to a Thai visa extension. In both cases, the original document is issued with a short term validity (usually one year, although work permits can be issued for three, six, nine, or twelve months at the individual officer’s discretion). After the permit expires the foreigner will no longer be legally entitled to work in the Kingdom.

In order to obtain a work permit extension, the foreign national must submit an extension application to the Thai Ministry of Labour. Depending upon the makeup and details of the Thai company, it may be possible to submit a work permit extension application to the One Stop Service Center. Upon application approval the work permit will be extended according to the duration approved by the officer.

At each application for extension, the underlying employment will be reexamined to ensure the employment falls in line with the relevant provisions of the Thai foreign business act, the US-Thai Treaty of Amity, and the Thai Civil and Commercial code. There are many protective measures in Thailand which restrict foreigners from certain occupations. Accordingly, non-Thais are not allowed to conduct certain types of activity. Therefore, one must be careful when deciding upon the duties to be undertaken in any type of employment in order to make sure that none of the activities in the work permit are restricted under Thai law. Since work permits must constantly be extended, there is always a possibility that one officer will consider a foreigner’s occupation to be in accordance with Thai law, while another officer will consider the same activity to be in contravention of applicable employment regulations.

Working in Thailand is a daunting proposition for some as the bureaucracy can seem overwhelming. However, it is always a good idea to make sure that one is legally employed in the Kingdom as unlawful employment could lead to civil, criminal, and immigration sanctions. It should also be noted that the Ministry of Labour has proposed an increase in work permit fees. When the fee increase will take effect is still unknown at the time of this writing.

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10th September 2009

In an apparent effort to deal with a are number of foreign nationals using Thai Tourist visas for unintended purposes, the authorities at the Ministry of Foreign Affairs are instructing Consular Officials at Royal Thai Embassies and Consulates to heavily scrutinize applicants for tourist visas. This edict seems especially targeted at Consulates and Embassies in the Southeast Asia region.  Thaivisa.com is covering the story and quotes the edict directly:

“As there has been a number of visa applicants having entered Thailand via tourist visa and misused it to illegally seek employment during their stay and, upon its expiry, sought to re-apply their tourist visas at the Royal Thai Embassy or the Royal Thai Consulate in neighboring countries, requests for visa renewal by such applicants are subject to rejection as their applications are not based on tourism motive, but to continue their illegal employment, which is unlawful.

This is in accordance with the Immigration Act, B.B. 2552 which stipulates that visa applicants are required to clearly express their real purpose of visiting Thailand. Should the case be found that the applicant’s real intention were concealed, the application will be rejected.

Please be informed that the intention of applicants to repeatedly depart and re-enter Thailand via tourist visa issued by the Royal Thai Embassy or the Royal Thai Consulate in neighboring countries in recent years upon its expiry, is considered as concealment of real purpose of visiting Thailand. Thus their visas applications will be rejected.”

Unlike the Thai O visa and the Thai Business visa, the Thai Tourist visa is not designed for those who wish to work in the Kingdom.  One present on a tourist visa is not entitled to apply for a Thai work permit. Due to this restriction, many foreigners opt to stay in Thailand and work illegally or “off the books.” Although tolerated at one time, this practice is viewed with increasing animosity by Thai Immigration officials particularly since the world wide economic downturn.

Thailand’s policy regarding this practice is similar to Section 214b of the United States Immigration and Nationality Act. This statute creates the presumption that those entering the United States on a non-immigrant visa, like a US Tourist visa, are in fact intending immigrants. United States Consular officers often reject tourist visa applicants because they cannot demonstrate true “tourist intention,” meaning that they do not have sufficiently strong ties to a country outside of the US which would compel them to depart the United States.  Working in the United States on a tourist visa without work authorization is also considered to be a major violation of non-immigrant status (although not a ground of inadmissibility). Thailand seems like it is beginning to tighten up immigration protocols and coincidentally these measures are making the system resemble the US Immigration system.

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5th September 2009

This blog has often compared and contrasted the difference between the Immigration procedures for obtainment of a US Visa and a Thai Visa. To further compare the two systems, this post will provide a brief overview of the financial requirements one must meet in order to obtain a visa to Thailand or the United States of America.

In order to sponsor a traveler to the United States, one must first decipher the type of visa the traveler will be using. In the case of Non-Immigrant visas (F1 student visa, J1 exchange visa, or B1 Business Visa) the applicant must be able to prove that they or their sponsor will be able to pay the expenses related to the trip. In the case of F1 and J1 visas, the applicant must show that they will also fully pay for their educational endeavors or their exchange program. In some cases, the J1 visitor must reimburse the public education system where they stay in order to obtain the J1 visa.

In the case of United States Immigrant IR1 and CR1 visas for family members from Thailand, the American Citizen must show that they meet the income or financial requirements in order to act as sponsor for their loved one. The basic concern of the Consular officer revolves around the notion that the Immigrant could become a “public charge,” if the American Citizen does not have the resources to pay for the foreign spouse. An I-864 affidavit of support is used to assist in determining if the American is capable of sponsorship.

The K1 visa is a combination of the non-immigrant and immigrant visas. That being said, an affidavit of support must be filled out by the American Citizen. The difference between the I-134 and I-864 is the fact that the I-864 is more legally binding with regard to the sponsor. If the foreign entrant ever becomes a ward of the state, then the sponsor could be forced to reimburse the American government for the expenses the foreign national incurs. The K3 visa, although a marriage visa, is technically a non-immigrant visa so the American Citizen must simply submit an I-134 affidavit of support.

In Thailand, there are certain Thai visa categories which require that the applicant show that they have some sort of financial safety net. Visas such as the Thai retirement visa and the Thailand O visa (based upon marriage), require the visa holder to continually prove that they either meet a prescribed minimum monthly income or have a certain amount of money in a Thai bank account.

For those applying for Thai visas outside of Thailand, certain consulates have differing financial requirements depending upon the visa category. Therefore, one wishing to obtain a Thai Business Visa may be required to show a minimum bank balance. The minimum financial requirement may vary from post to post.

The United States Embassy in Thailand, diligently scrutinizes the financial resources of those applicants wishing to obtain an American visa. Many people believe that there is some sort of magic numerical amount of money that if shown in a bank account will guarantee visa application approval. In reality, the Embassy looks at the “whole picture” when making decisions on US tourist visas and often simply having a large bank balance is not enough to obtain a tourist visa. Further, in cases where an American boyfriend tranfers a large amount of money into a Thai applicant’s bank account in an effort to “beef up” the applicant’s credentials, the Embassy can tell that the bank balance is artificially inflated and will likely deny the application. It is never wise to manufacture evidence in order to obtain a United States visa on behalf of another.

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1st September 2009

Speculation abounds as rumors circulate about possible price increases for Thai work permits. A common misunderstanding regarding Thai law is that the right to work is built into a foreigner’s Thai visa. This misconception is particularly acute with regard to the Thailand Business Visa. It is easy to believe that a business visa would entitle the holder to work in the country, but in Thailand, as in the United States on a B1 visa, foreign nationals are only allowed to work after obtaining Thai Ministry of Labour approval in the form of a Thai work permit.

The Nation, in conjunction with Thaivisa.com is reporting on the matter, to quote their report:

“The Phuket Gazette has learned that recent rumors of substantial increases in work permit fees may be well-founded. Discussions are underway in the Department of Employment that could once again lead to massive hikes in these annual fees.”

This situation appears quite alarming to expats in Thailand because within recent memory another dramatic fee increase caused consternation due to the enormity of the difference in cost before and after the fee increase took effect. To quote further from the Thaivisa.com website:

“The last hike in work permit fees occurred in September 2002, delivering an impressive 200% hike, an event that triggered lively and colorful comments on ThaiVisa.Com, host to Thailand’s largest English-language Web forum. Some recent comments in that forum, albeit from sources undisclosed and/or unofficial, foreshadow this month’s hike as likely to be something well over 100%.”

Six thousand Thai baht is only roughly equivalent to approximately two hundred United States dollars and compared to the Immigration system in the United States, United Kingdom, or many countries in the European Union the fees are relatively low when one takes into account the fact that the bearer of a work permit is given the right to work in a foreign country. Even keeping these factors in mind, an increase of one hundred percent is still considerable and substantial, particularly for the small Thai business employing foreigners or for the expat living in Thailand and running a small business.

One explanation for this fee increase could be economic. Although not as hard hit by the worldwide economic crisis, Thailand still has had flat numbers in tourism and the economy is sagging. Further compounding the problem is the prospect of another less-than-optimal high season and the specter of new demonstrations causing foreign investment to flee in search of economies with more stable government. These factors could explain why this fee increase is being brought forward at this time as protectionist attitudes and the need for government revenues increases. It is uncertain if or when the fee increase will occur, but one thing is certain: some foreigners will always want to work in Thailand and they will probably always have to pay some sort of government fee for the privilege.

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29th August 2009

The popular Website Thaivisa.com and the Nation Newspaper are reporting on the news that There is a planned expansion of Thailand’s current international airport. To quote the article:

“Airports of Thailand plans to build a domestic passenger terminal at Suvarnabhumi Airport while inviting the private sector to invest in six projects at the old Don Mueang Airport. Construction of the new terminal will start in 2012 for completion in 2015, to accommodate an additional 20 million passengers a year.”

A question upon the lips of many who read this blog is likely: “What about Getting a Reentry Permit at the airport?” Although these two subjects seem only tenuously related, they may in fact be more related than it appears at first glance.

Up until January 1, 2009 it was possible for long term residents of Thailand to obtain a Reentry Permit at the airport. This is an important stamp to obtain for those present in the Kingdom on a Thai visa extension. When one enters the country on a Thai visa, the visa has a set validity. However, it is possible to have one’s visa extended past the visa’s initial validity. Once obtained this instrument is known as a visa extension. However, the extension does not explicitly permit the bearer to leave the country and return while simultaneously remaining in status. Therefore, it may be necessary to acquire a Reentry permit so that one may leave the Kingdom and return while maintaining the same visa status.

There used to be a Royal Thai Immigration Office at Suvarnabhumi Airport that issued Reentry permits to travelers immediately before they left the country. As could be reasonably assumed, this office was very convenient for those leaving Thailand and wishing to return in status. However, for some unknown reason, this office was closed and currently it is not possible to get a Royal Thai Immigration extension issued at the airport. Those wishing to get a reentry permit must do so at another Thai Immigration office.

Hopefully, with the addition of a new terminal, the increased space at the airport may make it possible to reopen an Immigration office in order to facilitate the issuance of reentry permits. This being said, there appears to be no plan in place for opening any new Immigration offices at the airport.

It should be reiterated that anyone staying in Thailand on a visa extension should obtain a reentry permit before they depart from the Kingdom in order to forestall falling out of lawful visa status upon departure. Those present in the Kingdom on a multiple entry visa can depart and return to the Kingdom until the end of their visa’s validity.

For related information please see Thailand business visa

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21st August 2009

For those who opt to take up an expatriate lifestyle the issue of Thai visa status can be a crucial one. One’s Thai visa status is determined by the category of visa that is initially issued. Therefore, if a Thai consulate outside of the Kingdom of Thailand issues an applicant a Thailand Business visa, then that entrant’s visa category, and therefore status, is “B.”

In cases where a foreigner wishes to remain in Thailand in order to pursue legitimate educational objectives, then a Thai ED Visa is the category used to remain present in the Kingdom. For “miscellaneous” purposes and for reasons related to filial kinship, the O visa category is the proper Thai visa to acquire. Depending upon the reason for Thailand O Visa issuance, a Thai work permit may or may not be easily obtainable.

The ability to file for a Thai work permit depends heavily upon one’s status in the Kingdom. For instance, the holder of a Thai Education visa generally cannot obtain a Thai work permit. A situation such as this is one where change of status comes into play. A foreigner in possession of a Thai education visa will need to switch to another category in order to apply for a Thai work permit. An interesting corollary to this notion is the Thai F visa category which is a visa for official or quasi-official purposes (this is different from the US F visa, which is an education visa). Those who hold an “F” category Thai visa do not need to obtain a Thai work permit in order to work in the Kingdom because the right to work is inherent in the visa itself.

Visa status conversion can be a somewhat difficult process within the Kingdom. There is always the option of going abroad, obtaining a new visa, and reentering under a different immigration classification, but for those who do not wish to leave the country, this option may be unacceptable.

When changing categories in the Kingdom, the general rule is that the applicant for change of status must have at least 21 days of validity left on their current Thai immigration stamp. Changing status from one category to another can be more difficult depending upon the original category. Generally, the Royal Thai Immigration Police do not prefer to change an applicant’s status from visa exemption to a proper category. In these situations, they prefer that the applicant depart the country, obtain a proper visa, and return for a Thai visa extension at a later date. That being said, conversion from an exemption to a visa category can be achieved, but conversion is done at the discretion of the Royal Thai immigration officer.

It should be noted that change of status is different from obtaining a Thailand visa extension. For those who enter the Kingdom on a 60 day Thai tourist visa, it may be possible to obtain an extension of the visa for thirty days at the Immigration office. However, this does not mean that the applicant has changed visa category, only that they have increased the valid period of their Tourist visa. This is the same for those who enter the Kingdom upon a business visa and opt to extend the visa to have a year’s validity. The applicant remains in “B” visa status, but the validity period is extended.

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1st August 2009

For those who are present in Thailand on a long term visa it may eventually become necessary to obtain a Thai visa extension. A Thai visa extension allows the bearer to remain in the Kingdom of Thailand for a specified period (usually 1 year). That being said, if the holder of an extended Thai visa leaves the Kingdom, then the visa will automatically expire upon departure. The Thailand visa extension will not extinguish if the visa holder obtains a reentry permit. A Thai reentry permit is similar to a reentry permit for a USA visa in that it puts the Thai government on notice that the visa holder wishes to return to Thailand and does not intend to abandon his or her Thai visa.

Only an office of the Royal Thai Immigration Police can grant a reentry permit. Generally, there are two reentry permit classifications: the single exit permit, and the multiple exit permit. The multiple reentry permit is more costly than its single entry counterpart, but it may be wise to obtain a multiple exit reentry permit even if one is not immediately intending to leave the Kingdom of Thailand. I would argue that paying an extra fee for the multiple exit permit would be prudent in order to forestall losing one’s visa status should some sort of unforeseen eventuality arise.

The Reentry permit should not be mistaken for the Thailand multiple entry visa. A multiple entry visa usually allows the bearer to remain in Thailand for 90 days at a time over the course of the visa’s validity.  One major difference between the Thai visa extension and the Thai multiple entry visa is the fact that a person utilizing a multiple entry visa breaks their status every time the depart the country (even for a short period of time in the case of a “visa run”).  The person remaining in Thailand on an extension retains the benefit of enjoying unbroken visa status.

Even with a reentry permit, the holder of an extended Thai visa is still required to report their address every 90 days at the Thai Immigration office that has jurisdiction over their place of abode. Technically, passing through the Thailand Immigration checkpoint with a valid visa extension and reentry permit is a sufficient substitute for the 90 day reporting requirement because Thai Immigration simply wants to make sure that the foreign national checks in with their agency at some point during any 90 day period.

A Thai reentry permit should not be confused with a Thai work permit which is necessary in order for a foreigner to obtain lawful employment in Thailand. One should be aware that just because one has a valid reentry permit, their work permit may expire on a different date from their visa and take measures to ensure that all of these documents are kept up to date.

(Note: This information is for educational purposes and is subject to change. No fiduciary relationship should be construed to exist between the author and any reader of this posting.)

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29th July 2009

The Nation and Thai Visa are reporting some interesting developments with regard to Thailand’s Legal environment. First off, the all-but-abandoned Thailand Elite Card program is apparently still alive, but on life support. To quote the Nation via ThaiVisa:

“In November 2003, Mr Thaksin proudly presented 80 gold Thailand Elite cards to international VIPs and eminent people, including Japanese trade chiefs and US banking and financial supremos. The cards promised fast-tracked immigration, discounts at luxury resorts and golf courses, and many other perks. The optimistic estimates to attract the world’s wealthy were mind-boggling; a million subscribers to generate a trillion baht in revenue. But early signs were not encouraging. After four months, a meagre 400 memberships had been sold, barely a dent in the 100,000 target for the first year of operation. Panicky officials talked of targeting China’s nouveau riche, and predicted they would attract 30,000 Chinese within 12 months. But six years later, the total number of members is a risible 2,570, and the Thailand Privilege Card Company (TPC), set up by the Tourism Authority of Thailand (TAT), to run the scheme has a crippling net loss of 1.4 billion baht.”

As stated previously on this blog, the current government of Thailand has opted not to continue the Thai Immigration benefits accorded to Elite Card holders. As a result, the central pillar of the scheme has been toppled resulting in nearly no demand for the card. It will be interesting to see what the ultimate fate of the Elite Card will be, but at this time it appears that card holders are attempting to get as many benefits out of the card as possible in order to offset the cost of acquiring it.

In further reports from the Nation and ThaiVisa, it would appear that the Thai government is looking to crack down on Karaoke bars in Thailand, “The [Thai] Cabinet has approved new regulations that prohibit karaoke parlours from providing drinking or singing partners to customers, with their business licences being revoked if they do.” It will be interesting to see if these provisions will be stringently enforced and, if so, what effect this legislation will have upon the already crippled Thai tourism industry.

The government also is proposing regulations to limit the amount of time that Thai children can utilize computer gaming facilities. This seems like an attempt to reign in children who play computer games virtually non-stop. Finally, a proposed film rating system. The system would impose rating categories upon Thai films. The categories would span the spectrum from films which would be “encouraged” to those which would be “banned.”

(This post is merely opinion, no attorney-client relationship is created from reading this piece.)

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