If you are considering working in Thailand for a period of time, say 6 to 12 months, you must first sort out your Visa to allow you to stay legally in Thailand for that period of time. The last thing you want to be stressed about while engaging in your job and at the same time exploring this wonderful country is to constantly worry about your Visa / ability to stay in Thailand. As this topic is about how to receive a salary, you may read more about the Visa option for remote workers in our other article.
As a remote worker based in Thailand, the top 4 things to consider regarding your money, salary and finances while working in Thailand are
1) Your tax exposure in Thailand
2) Minimizing foreign exchange rate losses and bank fees
3) Security of your money (you don’t want to be holding on to your cash day and night)
4) How is your foreign employer (we assume they are proper company from Western countries / countries with strict financial and taxation law) pays you
Note: this article assumes you have obtained a valid visa (usually Non-B Visa) and a valid Work Permit) in Thailand already.
1. Your tax exposure.
As a Non-B Visa and a Work Permit holder, it is mandatory for you to file your tax return and to pay taxes for the income you earned while you are in Thailand. Thai personal tax system is based on your income tier and are as follows
Taxable Income per year (THB)
0 to 150,000 – Exempt
150,001 to 300,000 – 5%
300,001 to 500,000 – 10%
500,001 to 750,000 – 15%
750,001 to 1,000,000 – 20%
1,000,001 to 2,000,000 – 25%
2,000,001 to 5,000,000 – 30%
Over 5,000,000 – 35%
Note: you will be taxed at a progressive rate. Let say your taxable income (after eligible deductibles) is THB450,000 a year, you will be tax as per below
150,001 to 300,000 @ 5% = 7,500
300,001 to 450,000 @ 10% = 15,000
Total personal income tax = THB22,500
If you look at the above, Thai personal income tax rates are considered to be very favorable when you compare it with many western countries thus it is quite beneficial to have your income routed to Thailand instead of your home account.
Speak with a tax consultant to assist you to minimize and file your taxes here in Thailand is recommended if you are new to this country. The average cost of a good tax consultant is about THB5,000 only
2) Minimizing foreign exchange rate losses and bank fees
Thai banks make a lot of money from ATM fees every year. All Thai banks charge an extra THB220 per ATM withdrawal if you are using a foreign bank card. This is ON TOP of the exchange rate losses and the fee your bank may charge you for overseas withdrawal.
The best way to save on bank fees as well as foreign exchange rate losses is by having a personal bank account with a Thai Bank. Different Thai bank branches (yes branches) have different rules, some may make it more difficult to open a personal bank account, some may be easier, different parts of Thailand may have different rules and so on and so forth. The sure way to open a Thai Bank Account is via an agent who can guarantee you their service. The general requirement to open a personal bank account with a Thai Bank are:
– You have a permanent address here in Thailand (not a hotel, not an airbnb)
– You have a long stay visa (we are talking about non-b visa, non-o visa or a retirement visa)
– You have an endorsement letter from your embassy (many embassies do not issue these letters anymore)
Solution: Speak to an experience agent for assistant – you may check out: https://unionspace.co.th/open-personal-bank-account.php
3) Security of your money (you don’t want to be holding on to your cash day and night)
The only way is to have a Thai bank account and deposit your money in there and only withdraw a small amount of cash when necessary. Once you have a Thai bank account, you will also get a debit card, internet banking as well as mobile banking. With these, you can easily live in Thailand cash-less. Most shops and businesses accepts QR code payment (commonly known as Scan when you are speaking to the cashier here)
4) How is your foreign employer (we assume they are a proper company from Western countries / countries with strict financial and taxation law) paying you
.
We understand that you are excited about the possibilities of waking up on the pristine beach of Thailand or working from the mountains or the beach however as you are embarking this journey, you must also consider how is your employer going to expense / pay you while you are overseas (and you definitely DO NOT want them to continue to remit your salary into your bank account back home) because of the taxes, bank fees, exchange rate losses.
One of the most common way is to engage an EOR company here in Thailand such as: https://unionspace.co.th/employer-of-record.php and get them to engage your employer as a service agreement therefore your employer can pay you via a service invoice that your EOR raise to them. This way, your employer can correctly expense out your salary and you can receive your salary in your Thai Bank account in Thai Baht. Once you have received your money in your Thai Bank Account, you do not have to worry about foreign exchange losses and bank fees anymore.
We hope the above information helps those who are considering remote working / traveling to Thailand to work. If you have any questions at all, please feel free to contact UnionSPACE and our team will be more than happy to assist you. We also offer FREE Coworking space (https://unionspace.co.th/coworking-ekkamai-bangkok.php) at our Ekkamai branch for those who are seeking a great place to work whilst you are in Bangkok.
Check out our latest 2 Years Sponsored Visa & Work Permit and EOR package here: https://unionspace.co.th/work-remotely-in-thailand-visa-workpermit-salary-package.php
