Thailand Immigration – Compliance Updates and Highlights
October 19, 2015
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By: Mariel Pangilinan and Corrine Tan
Despite a growing business market, an ever-increasing number of investors, and being acknowledged as one of the world’s top tourist destinations, Thailand maintains a strict immigration policy, especially when it comes to employing foreign workers.
To be able to work in Thailand legally, a foreigner must obtain a work permit sponsored by a qualified Thai corporate entity. Without one, foreigners entering Thailand are not permitted to engage in any type of employment or business, regardless of their type of visa. A work permit allows an individual to work and conduct business in the country and, in order to be granted one, they must first obtain the correct type of visa.
Additionally, since the beginning of 2015, the Thailand Immigration Department has introduced a number of changes geared towards tightening restrictions and imposing stricter compliance with visa application requirements.
Non-Immigrant B Visa and pre-work permit approval
Before a foreigner can apply for and be issued with a work permit in Thailand, they must enter the country on a Non-Immigrant B Visa (Business Visa), obtainable from an overseas Royal Thai Embassy or Consulate in the foreigner’s home country or country of residence.
It is a common misconception that a foreigner in possession of a Business Visa is permitted to work in Thailand, but this is not the case. Holding a Business Visa simply allows the foreigner to apply for a work permit once in the country. Additionally, a Business Visa issued by an overseas Royal Thai Embassy may even impose a condition whereby the applicant cannot use the visa to obtain a work permit. As such, a fresh Business Visa may need to be applied for, for “employment purposes.”
The required documents for a Business Visa application can vary and will depend on the discretionary requirements of the Royal Thai Embassy or Consulate from which the visa is obtained. While some have straightforward requirements, others, such as the Royal Thai Embassies in Singapore and the Philippines, require that a pre-work permit approval letter issued by the Employment Department in Thailand, or a pre-work permit application form (WP3), be submitted as part of the Business Visa application.
As an increasing number of Royal Thai Embassies and Consulates require a WP3, companies and applicants should take note that this can further delay the application process. A WP3 can take at least two weeks to obtain and this needs to be taken into account when planning business arrangements for foreign employees. Furthermore, certain country nationals, such as Chinese or Indian nationals, will generally require the pre-work permit approval as part of their Business Visa application.
Urgent Work Permit – revised permissible activities
Earlier this year, the Employment Department of Thailand issued an announcement expanding the list of permissible activities considered as “not working” in Thailand. As a result, a work permit or Urgent Work Permit (UWP) would no longer be required to undertake the following specified activities:
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Attending conferences or seminars or gathering information;
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Visiting/viewing exhibitions or trade shows;
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Visiting businesses or holding business discussions;
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Participating as an audience member in special lectures or educational forums;
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Participating as an audience member in technical training sessions or seminars;
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Buying products at a trade show; and
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Attending board meetings or director meetings in the foreign national’s own company.
It is important to note that specific activities, such as representing a company as a conference speaker, still require a valid work permit. This new regulation is in line with Thailand’s self-promotion initiative and designed to encourage foreign companies to set up regional operating headquarters in the country. Foreign nationals would be wise to consult with their immigration advisors regarding the activities they will conduct under a business visa to ensure they fall within the new categories.
Tax documentation for long-term visa applications
With effect from 6 July 2015, and in an effort to clamp down on a reported increase in fraudulent applications, employees applying for either a first-year application for a long-term visa (new employee) or a visa renewal (existing employee), are now required to submit proof of income tax payment prior to lodgement.
In the past, a new employee could concurrently obtain a work permit and long-term visa at the One Stop Service Center (OSSC).
For a foreign employee’s first-year application (new employee), the long-term visa application can only be filed after the foreign employee has first made payment of their monthly salary withholding tax. The cycle for such payments falls on the 7th of the following month or until the company has made arrangements to pay the tax. An official certified copy of the tax payment will be required to support the long-term visa application.
In addition, the immigration authorities now also require the evidence of monthly salary withholding tax for ALL foreign employees who hold a work permit issued under the same local entity, whether for long- or short-term assignments or project work permits.
The personal income tax document required for visa renewal will depend on whether the foreign employee is on a local or non-local payroll.
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Those on a local payroll must submit an official certified copy of the monthly income tax withholding form and monthly income tax receipt (PND 1) for the latest month; and
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Those on a foreign payroll must submit an official certified copy of the tax form and a receipt for self-paid income tax on the declared salary (PND 93). The tax payment is calculated from the month the visa is filed until six months hence.
Furthermore, the company director must submit a form to the OSSC that confirms the number of foreign employees with every visa renewal application. Forms can be obtained from, and must be submitted to, the OSSC on each occasion.
The Immigration Department has been strict in its implementation of these changes and employers are strongly encouraged to ensure all foreign employees are compliant with the monthly Thai tax requirements which may have an impact on individual renewal applications. Foreign employees who are expected to be on short-term assignments have the option to enter Thailand on a business visa (valid for up to 90 days) as they will be exempt from the tax documentation requirement because no long-term visa application is filed.
Certified corporate documentation for OSSC applications
In early 2015, the OSSC passed new requirements for documents to be certified before submission. Foreign nationals submitting work permit, long-term visa and/or renewal applications at the OSSC were previously able to submit photocopies of corporate documents but must now submit copies certified by the relevant issuing government agency. The announcement does not change the actual process, but it does increase the documentation burden on applicants, as a new set of certified documents will be required for each application.
Employers must allow up to ten working days to obtain certified documents, depending on the government agency involved. Additionally, some government agencies may charge fees for certification.
It is recommended that employers apply for several sets of certified documents at once rather than on an ad hoc basis to save time and resources.
Employers may also be able to apply for work permits using photocopies and subsequently submit certified documents, once available. However, this would involve two trips to the OSSC.
90-day notification
All foreign nationals residing in Thailand are required to report their current address for each continuous 90-day period they remain in the country. A separate report must be made for each family member, including children. Reporting must be made to the Immigration Bureau or the appropriate provincial immigration office, using reporting form TM-47 and can be undertaken seven days prior to or after the due date without penalty. If the foreign national leaves Thailand before their next 90-day report is due, they will not need to make a report. However, upon their return, they must keep track of their own record to calculate the next 90-day reporting date, commencing from when they re-entered the country.
Foreigners who do not comply with the 90-day report are subject to a fine of not more than THB 5,000 and an extra fine of THB 200 per day for each day of non-compliance and are required to appear at the Immigration Bureau in person to file the report and pay the fine. Failure to make a report may also result in the foreigner not being permitted to leave Thailand without first reporting to the Immigration Bureau.
