Can LTR visa holders legally work remotely from Thailand for a foreign employer without tax implications?

Jun 1, 2023
2 years ago
Koj***
ORIGINAL POSTER
Remote work question for LTR visa holders:

The Canadian company I'm attempting to work remotely for is looking for proof that the LTR allows you to work remotely from Thailand, tax-exempt, and allows them to keep me employed like a normal Canadian citizen without doing anything special to accommodate me legally.

Beyond the LTR website ([members only]/) I'm not sure what else I can provide them. Anyone use any other website or source to provide this proof?

Thanks in advance! 🙏
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TLDR : Answer Summary
A user is seeking clarification regarding the legalities and tax implications of working remotely in Thailand for a Canadian company under the Long-Term Resident (LTR) visa. They want to understand if the LTR allows them to operate tax-exempt and if there are any other sources besides the LTR site to provide proof to their employer. Various comments suggest getting confirmation from BOI, referencing interviews on YouTube that discuss these scenarios, and outlining potential risks related to permanent establishment for the employer in Thailand. Others discuss tax liability specifics for income earned while working remotely and the conditions under which taxes would be due.
LONG TERM RESIDENT (LTR) VISA RESOURCES / SERVICES
Kool *******
If you are going for a LTR based on remote working, you are not tax exempt in Thailand. There is a set tax rate you will pay when you file your Thai income tax. I believe it is set at 17%, and doesn't fluctuate if you make more or less in wages. There is also a minimum wage requirement your Canadian company must be paying you.
Koj***
ORIGINAL POSTER
@Kool ******
yeah that was my understanding too. It clearly states this on the home page of LTR site
Andy **********
@Kool ******
Think the 17% flat rate is on income derived in Thailand. Not income derived from outside of Thailand.
Neil ******
The Royal Decrees are on the BOI site translated to English. As long as you are only doing remote work for your company and the work and company have no contacts or clients in Thailand and you don't set up any sort of office, you should be ok, but your company should probably get the analysis done regarding permanent establishment and ongoing business, because it would subject the company to tax withholdings. If the company meets the 150M requirement, I'm sure it can afford a small fee to a Thai lawyer for the analysis.
Koj***
ORIGINAL POSTER
@Neil *****
do you have a link for this? I can't seem to find it
Neil ******
@Ray ****
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Andy **********
@Neil *****
But what is the incentive to the employer for the employee to be in thailand? The lawyers will come back and say risk cannot be eliminated, because you cannot guarantee there won't be business with thailand. The OP needs to read the Thailand-Canada tax treaty carefully because that will have a section on PE.
Neil ******
@Andy *********
there are employees here on it. I’m a lawyer. I understand what you’re saying, but there isn’t a risk with a lot of work. Some employees are very senior. Some are long term loyal employees. BOI won’t get close to a million on LTR, but the assumption that no employers would be willing to allow employees to live in TH is already proven wrong.
Andy **********
@Neil *****
As a lawyer how would you interpret the meaning of "habitually" in the context of the section on PE in the UK-Thailand tax treaty (though I think similar wording in other tax treaties(, where it refers to an employees role in revenue generation or sales. Basically if you are involved in a sales transaction that involves a Thai client entity, then there is PE, unless that is not an habitual role. That includes contract signing on behalf of the company. Anyone in senior management could be asked to do that. Anyone hoping for career progression could do that. Basically the LTR restricts what you can do for your employer. I don't even know what means for employment rights in terms of redundancy. And the only person wanting to be in Thailand is the employee. There is no incentive on the employer to make this work unless they wanted to retain the employee, and that means senior management only. Everyone else is expendable. I've had conversations withe a senior tax law expert in a Hong Kong based merchant bank who knows a thing or two about international tax law and had a completely different view of this. What's more, Thailand can change their mind in 5 years time and those people who thought they were there for 10 years aren't. Name these global firms who are on board with shipping out senior managers to Thailand under this scheme. Virtually all senior managers in a public company are directly involved in revenue generation. Thailand require furnishing of accounts show no sales in Thailand otherwise they can levy a 5% charge.
Neil ******
@Andy *********
there are lots of employees who are internal function employees unrelated to sales or direct revenue. I can’t comment on UK or anything I haven’t specifically read, but I certainly have an analysis on the Thai regulations and many internally functioned employees can work remotely here without triggering tax withholding. I do, however, think that as LTR evolves over time, there will be clarifications in the regulations that make the analysis easier for employers to consider. I can promise you that I know a senior manager of a global company in Thailand working remotely who has absolutely zero chance of being involved in PE.
Andy **********
@Neil *****
Tax withholding is not the same as PE. One is about personal income tax and the other is about corporation tax. So you have gone from loads of examples to one. OK. LTR might be gone in five years, maybe next. For a junior person with a masters on $40k, just about making the cutoff, they will have think carefully about career development as there will none. Matters less for those already on a downward trajectory. The other option for those in global companies is to check whether they have a Thai subsidiary. Then there are other routes available. Post covid companies do recognise that employees might want to relocate to other countries. But employees might find their employer will pay them at local rates. Moving to somewhere like Singspore, no big change in salary. Thailand though will have a big cut. Outside of LTR Thai rates are bit regressive compared to UK and tax take only starts to improve once you get past ÂŁ60-70k. LTR also apparently doesn't help if you want permanent residency.
Neil ******
@Andy *********
Corporate tax withholdings. I thought that was obvious. It obviously doesn't work for everyone. But, there's certainly an argument to be made for some employees that working from TH on LTR is not considered Thai labor and therefore the foreign employer shouldn't pay local rates because the employment isn't considered Thai employment under Thai laws (LTR work from TH). Again, this kind of privilege wouldn't be available for lower salary or early career. The situation is for unique situations, but that doesn't mean we should ignore their existence.
Alex *******
There is a permanent establishment risk for the company which has also even been acknowledged by the BOI according to somebody who asked them
Andy **********
@Alex ******
Yes, BOI told me the scheme is designed to create advantage for the employee not the employer. Permanent establishment is the risk that the employer is liable to thai corporation tax based on your activities in thailand. Also while ltr means thailand won't charge income tax on your salary from Canada, Canada might.
Cassandra ******
Smart T visa allows you to work remotely in Thailand, contact them regarding smart visa and BOI matter +66983323103
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Brandon ************
Lookup a YouTube channel called "retired working for you"

Chris did an interview with a high level official from the BOI and they specifically cover this scenario during the interview.
Koj***
ORIGINAL POSTER
@Brandon ***********
yes I believe I saw that video. The one where they give a Twitter employee as an example, right? Good idea, can add that to evidence
Brandon ************
@Ray ****
yes that's the example
Wayne *********
Try getting boi to confirm via email
Koj***
ORIGINAL POSTER
@Wayne ********
great idea, thanks!
Wayne *********
@Ray ****
a simple worded email to Boi.

Can you confirm that if i hold a Ltr visa i can legally work remotely while in Thailand

Should do it, dont over do the email as you will confuse them 🙂
Brandon ************
@Wayne ********
just like my boss. He'll only answer the first question in any email 🤦🏻‍♂️
Wayne *********
@Brandon ***********
we call it kiss. Keep it stupidly simple.

Some only read first 2 or 3 lines then bored
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