Working in Thailand on Tourist Visas
A visa that is issued on-arrival in Thailand is an immigration matter and just about irrelevant for Thailand tax law matters. Irrespective of the type of visa, under the Thai tax law:
But it doesn't stop there, and if a foreign company's employee is working in Thailand on a tourist visa, he or she could cause Thai tax risks for the foreign company as well.
Firstly, the Thai tax law prescribes that all payers of income (including foreign company payers) shall deduct withholding tax from payments of Thailand employment income and prescribes them liable to the Thailand Revenue Department for such withholding tax.
Secondly, the Thai tax law prescribes liability to Thai corporate tax for foreign companies that are carrying on business in Thailand through employees in Thailand, and subjects such foreign companies to Thailand Permanent Establishment (PE) Tax.
Foreign company employers should seek proper Thailand tax advice before allowing any employees to simply fly into Thailand on tourist visas for the purpose of carrying on business activities in Thailand.
This Tax Insight is general information only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.