New document certification requirements add significant burden to work permit processing

16 Jan 15

THAILAND

IMPACT – HIGH

What is the change? As a fraud-prevention measure, Thailand has imposed stricter certification rules for numerous documents that are required in work permit applications at the One-Stop Service Center.

What does the change mean? Applicants must obtain certification of each document by the appropriate agency, adding time, expense and delays to the process.

  • Implementation timeframe: Jan. 19, 2015.
  • Visas/permits affected: All work permit applications.
  • Who is affected: Employers and foreign employees.
  • Impact on processing times: Processing times may remain the same, but applicants will have to devote significantly more time to document gathering and preparation.
  • Business impact: The new requirement adds a significant administrative burden on employers and foreign employees and is likely to create considerable delays when applying for work permits.
  • Next steps: Employers should allot more time and expect additional expenses to obtain document certification from all relevant agencies.

Background: Under the new rules which take effect Jan. 19, Thailand’s One-Stop Service Center will no longer accept originals of the documents listed below. Instead, the agency that issues each document must certify it.

  1. A copy of the employer’s financial statement in Thai, containing a balance sheet and profit-and-loss statement for the previous year, audited and signed by the CPA, must be officially certified by either the Revenue Department or the Ministry of Commerce.
  2. A copy of the corporate income tax return (P.N.D.50 form) and receipt for the previous year must be officially certified by the Revenue Department.
  3. A copy of the company’s monthly salary withholding tax (P.N.D. 1) and receipt for the most recent month for all Thai and foreign employees must be officially certified by the Revenue Department.
  4. A copy of the monthly Value Added Tax (VAT) return (Phor Por 30 form) and receipt for the most recent month of all Thai and foreign employees must be officially certified by the Revenue Department.
  5. A copy of the monthly Social Security contributions and receipt for the most recent month for all Thai and foreign employees must be officially certified by the Social Security Office.
  6. A copy of the audited financial statement for the previous accounting year acknowledged by the Department of Business Development (Sor Bor Chor 3 form) must be officially certified by the Ministry of Commerce.
  7. A copy of the employee’s personal income tax return (PND 91) and receipt for the most recent year must be officially certified by the Revenue Department.

BAL Analysis: Employers should anticipate delays as it may take time to obtain certification from each government agency. Clients are encouraged to work with their BAL attorney as soon as possible to plan for the additional time, expense and inconvenience involved in meeting these new certification requirements.

This alert has been provided by the BAL Global Practice group and our network provider located in Thailand. For additional information, please contact your BAL attorney.

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