What are the requirements for working in Thailand on a DTV visa, considering tax and employer responsibilities?

@Greg *******

you cant overthink German tax laws ;-) there is a tax for everything, even if you move abroad (in some cases called Wegzugssteuer)

@Robin ********

I understand I am not aware of German tax laws and do not make any comments on them. I do understand an overseas legal entity ie company/employer would be covering their back with regards to any future liabilities. My current view, and I may very well may be wrong, is that DTV holders will not get caught up in the Thai tax system anytime soon. It is only this year many retirees here "Should" be completing a tax return. There are well over 50k foreign retirees here. I would wager well over 90% have never completed tax return and that number will not increase by much next year These are people who in all probability are Tax Residents. As for DTV unless they tie Immigration systems to the Thai tax system it is a very complex matter to assess who is a tax resident - I would not hold my breath :-).

@Greg *******

I agree with you, DTV holders will most likely not be caught up in the Thai tax system.

The problem in this case are German work and tax laws, as a employee working abroad permanently is establishing a so called "Betriebsstätte" (like a foreign branch of the company). That has a lot of awefull tax and social security consequences for the employer himself (not necessarily the employee). Most German employers limit remote work therefore.

@Robin ********

Off topic and maybe not relevant here but it does illustrate how you can get caught up years later. An IT contractor at Sky TV we worked with got caught up for taxes a few years later. He had been contracting in Belgium and "forgot" to pay his taxes when he left. He was driving to Netherlands for Christmas and got stopped for speeding in Belgium - it came up on the system he owed taxes. He was detained till he paid :-)

@Robin ********

I totally understand the employers point of view. These situations are complex and you do not want any surprises a few years down the road with any liability. When I have been employed outside the UK (Singapore and Thailand) I was employed by the local legal entity of the company - not working remotely from UK or Japan HQ. When I contracted as freelancer in Belgium that was complex. The DTV holders need to sort out the situation with their "home" employers. I doubt Thailand cares for now!

Anonymer Teilnehmer Sozialversicherungssystem

Begründung des Status eines „Multi-State-Worker“

Höhere Beitragszahlungen für Arbeitnehmer und Arbeitgeber

Steuerpflicht des Mitarbeitenden

Begründung einer beschränkten oder unbeschränkten Steuerpflicht im Ausland

Besteuerungsrecht könnte dem Ausland zugewiesen werden

Mögliche unterjährige Doppelbesteuerung

Verpflichtung zur Abgabe einer Steuererklärung im Ausland.

Quelle:

Anonymous participant It would be a good idea but please use one with experience and qualification. Too many have popped up since the rule changes announced a year ago. I would not trust the majority of them to handle my pocket money never mind tax returns. Many of them were Financial Advisors selling dodgy financial products one day collecting commission and the next day international tax consultants using FUD (Fear uncertainty and doubt) marketing. My tax returns were done by this company for the last 5 years v- no idea of the cost as the company paid. They will not be the cheapest but they have global reach and are experts in their field. They even got me a tax rebate from Thai Tax authorities one year which everyone said would never happen. 🙂

@Raphael *******

Yes - that is the trade off. When I was a contractor I had no sickness or holiday benefits etc from the company I was actually doing the work for. However, the compensation should be a lot higher and you can take other advantages such as pay yourself in directors dividend (lower UK tax rate for this than employee) rather than salary etc. In my career I went both ways a few times. Employee (permit), then contracting, back to employee then contracting then permie again. The individual really has to look at their own situation and the risk/benefit analysis.

Anonymous participant wrong you don't pay tax inside Thailand under the DTV visa...please don't confuse the people for UN unfounded information....

Anonymous participant of course not...DTV does not allows you to stay more than 180..that's why every 180 you have to extend which reset your visa to 1 day again...so don't be confuse and don't bring that unfounded confusion

Anonymous participant hahaha oh my goodness anyway...it's good you pay tax .....there is nothing wrong about it....but don't use that to confuse others

Anonymous participant awareness is good but unfounded information brings confusion rather than awareness, beside that you even hide yourself while spreading awareness seems your spreading rumour than to inform....

Anonymous participant hahahahah...anyways Im tired to spend the debate with you...

Anonymous participant Not understanding the question

Anonymous participant Ah yes. The employer overseas has no legal entity in Thailand and is not paying you through that legal entity so owes nothing to the Thai Authorities. There is a Thai Social Security payment for Thai employees owed by a Thai employer. It is not very much - for employees it maxes out at 750 THB a month or a 15k TYB a month salary (If I remember correctly). The benefits are not actually bad for such a low amount. Govt hospital treatment and unemployment 🙂

@GenesisFritz *************

Sorry but no. It is 180+ days in a calendar year which happens to be Thailands tax year. It is total days in Thailand in the year not consecutive days as you are implying. So for example you entered in January - left after 180 days. Then re-entered a month or two later before the year end. You are then deemed to be a Thai Tax Resident. I do hope you are not offering tax or visa advice.