20 Myths About Den Haag Letselschade Advocaat: Busted

Thailand does not have a real property tax system and, for the time being, there are two local taxes applicable to people who own immovable property.

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The first tax is the Local Development Tax imposed upon people who either own or possess land. This tax rate varies according to the estimated land value as appraised by the local authorities. Allowances may be granted if the owner utilizes the land for personal dwellings, animal husbandry and/or the cultivation of crops. The extent of these allowances depends upon the location of the land. It is said that the rates are so low that officials don't usually bother to collect on a yearly basis. This tax is also levied on houses, buildings or any other improvements built on the land.

Then there is the House and Land Tax, which applies to the owner of a house, building, structure or land that is either rented or put to commercial use. Taxable property under the House and Land Tax includes houses not occupied by the owner, industrial and commercial buildings and land used in connection therewith. The tax rate is 12.5% of the estimated annual rental value of the property or the actual rental value, whichever is the highest. Owner occupied residences are exempt from this tax. Note, however, that this exemption applies only to individuals, not to juristic persons, because juristic persons are deemed to use their property commercially. In other words, a company that purchases an office has to pay the tax, even if the company uses the premises to serve its own offices. There is a project to replace the House and Land Tax with a real property tax within 2 years, wherein the rate would be from 0.01% up to 1% of the estimated value of the property, depending upon the property type. The rate would be 0.01% on agricultural land, 0.1% on personal residences; 0.5% on commercial buildings and 1% on undeveloped land.

Note that it is possible to mitigate the cost of the House and Land Tax. If, for example, you rent condominium in Pattaya fully furnished, you may choose to execute two agreements with your lessee. The first agreement will be for the rental of the condominium unit and the second agreement will be for the rental of the furniture and/or additional services (if any are provided). This will reduce the cost of the House and Land tax because the tax only applies to the yearly rent received from renting out the property, but not on the rental income received from renting out the furniture, etc.

If the rental agreements are executed between two individuals, there is no VAT applicable on the furniture or service agreements. If, however, the owner of the condominium is a company and if the company is registered for the VAT, then the VAT will apply at 7% on the furniture or service agreements executed between the lessor and the lessee.

For example, if you rent out condominium in Pattaya fully furnished for a rental fee of THE 60,000 per month and only make one agreement with your Lessee, then you'll have to pay a yearly House and Land Tax as follows: 60,000 x 12 x 12.5% = THE 90,000. You can save on taxes legally by simply breaking the rental fee down into two agreements. For example, the rental fees may be THE 35,000 per month for renting out the condominium and THE 25,000 for renting out the furniture. If you break the rent down in this way, the Land and House Tax will be only THE 35,000 x 12 x 12.5%= THE 52,500. If, however, the owner of the condominium is a company registered for VAT, then it will have to apply the VAT to the furniture lease agreement. Even so, the company owning the property will save money on taxes, because the Lessee supports the cost of the VAT.

The matter of the withholding tax also applies when renting out. If an individual leases a property to another individual in Thailand, the payment of the rent is not subject to withholding taxes. However, when a company is renting a property, then the company will have to deduct a withholding tax from the amount of the rent paid to the owner (whether an individual or a company). The amount withheld must be paid to the tax administration on behalf of the owner who will use the withholding tax as a tax credit against the yearly income tax. The rate of the withholding tax is 5% in Thailand. Note that when a rental fee is paid outside Thailand, the amount of the tax to be withheld from the payment is 15%. Furthermore, if you are a non-resident offered a rental guarantee by a developer, never forget to take the withholding tax into account when calculating your potential income.

It is best when you are working in a foreign country that you abide by the rules and regulations for your employment. Thailand has very strict laws governing the employment of foreigners. There are many areas of employment that are restricted to only Thai nationals and therefore foreigners are not allowed to work these jobs. Once you meet the requirements you will need to submit your Thailand work permit application to the Labor Department for approval. We will review the process for your work permit application.

Thai Work Permit Process: Obtaining a work permit requires an applicant to gather the necessary documents prior to applying.

First, the applicant must obtain a Non-immigrant visa category "B". To receive a category B visa the applicant should file a petition with the Thai embassy in his or her native country at least 30 days before the planned departure. The applicant should include with the petition

1. Proof that the applicant has been offered a job or starts a Thai company and will employ himself or herself,

2. A request from the company that the applicant be granted a visa,

3. A statement from the company declaring the applicant to be dependable, upstanding and law abiding,

4. And finally, registration and financial statements from the company.

Second, once the category B visa has been granted the applicant and the employer should complete the necessary petition and provide a number of additional documents. The applicant should provide the following documents

1. The applicant's passport along with copies of every page of the booklet (the copies must be signed by the applicant),

2. The non-immigrant visa category "B",

3. The applicant's departure card TM 6,

4. A signed copy of the applicant's educational degree(s)

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5. A signed copy of the applicant's transcript

6. The applicant's CV or Resume that describes past positions, duties, performance reviews, length of tenure at the positions, and the locations of employment

7. Three 5 X 6 photos of the applicant's face that have been taken in the past six months

8. Any certificates or licenses held by the applicant (the copies must be signed by the applicant,)

9. Any marriage certificates if the marriage is to a Thai national (this includes the original and signed photocopies and the spouse's ID card, birth certificates of children and household registration documents,)

10. Note: The Thai officials handling the application may require that the document be certified by the applicant's embassy requiring a person to go to the embassy prior to submitting the document.

In addition to applicant's documents, the company should also provide the following materials all of which require the seal of the company stamped on each page along with signatures of the Managing Director(s):

1. A Commercial Registration Department Certificate demonstrating that the company is registered as a juristic person (the document should include the name of the Managing Director(s) along with the registered capital and objections,)

2. A list of the shareholders that has been certified by the Commercial Registration Department,

3. A VAT Certificate - Phor Phor 20,

4. If necessary a factory license issued by the Factor Department of the Ministry of Industry,

5. And if the work permit is being renewed then a Withhold Tax - Phor Ngor Dor 1.

6. Note: Other documents may be requested.

Third, while these are required documents often times a job description can help in having the work permit approved. The job description should indicate why a Thai national would not be able to satisfy the job requirements. Additionally it is important to never let the applicant's visa expire during the process of waiting for a work permit as it will reset the process. Finally, once the work permit has been approved the applicant must go to the Labor Department and Den Haag Letselschade Advocaat sign the permit.

Additional Steps: Once you have a Thai Work Permit the applicant may or must complete a few additional steps in order to fully enjoy the permit.

Optional Steps

· Obtaining a re-entry visa which allows the applicant to leave and reenter the country without forfeiting the visa or work permit.

· Renewing the visa and work permit if the applicant wishes to remain and work in Thailand for an additional period of time.

Necessary Steps

· Obtaining a Tax ID card and Tax ID Number which will be needed for tax documents.

· Report to the Thai Immigration Police every 90 days to ensure the work permit and visa are being maintained or if the applicant has a multiple re-entry visa then leaving and reentering Thailand will satisfy this requirement.