06 Jul New Immigration Regulations for Non-BOI Companies at the One Stop Service Center
New Immigration Regulations for Non-BOI Companies at the One Stop Service Center
On July 6, 2015, new Immigration regulations came into effect for Non-BOI companies at the One Stop Service Center. The regulations concern the required personal income tax documents for work permit holders who apply for a first-year application long-term visa (new employee) and for a visa renewal (existing employee) at the One Stop Service Center (OSSC). The Immigration Department at the OSSC put these new regulations into place because it discovered that some companies had made fraudulent tax filings in the past in order to avoid withholding tax payments for foreign employees.
Under the new regulations, for an employee’s first-year application, the employee will only be able to apply for a long-term visa extension after the employee has first paid the monthly salary withholding tax. Please note that in the past, a new employee could apply for a work permit and a long-term visa at the same time at the One Stop Service Center. Now, even if the employee has obtained the work permit at the OSSC, the employee must wait until they have first paid monthly salary withholding tax. The cycle for filing monthly salary withholding tax falls on the 7th of the following month. For example, if the employee obtains a work permit in March, the employee will not be able to apply for a long-term visa extension until after the 7th day of April or until the company pays the tax to the Revenue Department and is able to submit the official certified copy of the tax to support the visa application.
When filing a first-year application long-term visa (new employee) or a visa renewal (existing employees), in addition to evidence of the monthly salary withholding tax of the employee applying for the visa, Immigration now requires the submission of evidence of monthly salary withholding tax for all foreign national employees with work permits issued under the company, regardless if it is for a long-term work permit, a short-term assignment work permit, or a project work permit. Immigration requires that the company sign the designated form confirming the number of foreign national employees in the company and submit it every time an employee applies for a visa at the OSSC. The designated form can be collected at the OSSC.
For visa renewal, an employee must have correct personal income tax documents required for visa renewal, either A or B, which depend on the facts of the case and where an employee receives income:
A. Official certified copy of the form and tax receipt for monthly salary withholding tax (PND1 form) for the latest month, if the employee is placed on the local payroll in Thailand; Or
B. Official certified copy of the form and tax receipt for self-paid income tax on the declared salary (PND 93 form), if the employee receives income outside of Thailand. The tax payment must be calculated starting from January 1, 2015 until the month that visa renewal application is made plus another 6 months in advance.
Once an employee obtains a work permit, they are required to pay Thai personal income tax from the date the work permit is issued. Without payment of personal income tax, the long-term visa extension cannot be renewed. In order to avoid last minute problems for visa renewals, please ensure that the employee is compliant with all Thai tax and social security requirements.
Disclaimer: All material provided here by Dej-Udom & Associates is for informational purposes only. It does not constitute legal advice from this law firm nor any of its attorneys. While every effort has been made to verify the material, Thailand’s laws and regulations can change suddenly with no notice. Before acting on any of the information contained herein, please obtain professional advice from a qualified lawyer in Thailand.