Working in a branch of a multinational in Bangkok?
December 6 2018
Dear readers,
I work for a large multinational with offices all over the world. I myself work for the branch in the Netherlands, but would like to work in (and not for) the branch in Bangkok. So not employed by the Bangkok branch, but remain employed by the Dutch branch. And just pay tax in the Netherlands. In fact I only use “office space”.
Does anybody have experience with this? And should this temporary transfer be arranged by the Dutch branch with the authorities in Thailand or by the Thai branch?
Thank you in advance.
Regards,
Ed
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That seems more like a question you should ask your company, don't you think? When I worked there, my company had local and non-local people working in every country where it had an office. The non-residents received a good salary, because as expats they received extra compensation in the form of a home and an extraordinary salary. So what you should ask your company is whether there is a need for them to have you do work in Thailand as a more expensive employee, for which they cannot use a cheaper Thai employee.
If you come to work in Thailand, a work permit is required, one of the conditions for which is that you earn a salary and pay your tax here.
The tax rates here are more favorable so why would you want to keep paying in NL
If you are thinking about social security or later state pension, you can register yourself there personally
For any tax benefits at home or whatever, you can have part of your salary paid in NL, 50-50 or anyway. Matter of math
The majority of the expats sent by the larger multinationals, such as Shell, etc., keep their salary in NL and receive an allowance/allowances as mentioned by Sjaak S.
At your own request, you are somewhat less strong for such demands.
Succes
Get a work permit. If you work outside the Netherlands for more than 90 days and receive your salary in the Netherlands, this is tax-free. Do report in connection with the state pension and health insurance and unemployment benefits.
In Thailand you specify your living costs hand money what you get and possibly the rent of the house and or car.
Ed, you could first find out whether the Netherlands has a tax treaty with Thailand. In many cases there is a 183-day limit (half a year). If you then work in another country for more than 183 days per calendar year, you will owe tax there. Also find out whether or not you need to unsubscribe. That has quite a few consequences. Contact your employer!
Hi Ed,
I also work for a large multinational with branches in Thailand. With my employer it is best to get an expat contract, the salary is very good with all kinds of additions for housing, health insurance, car rental, plane tickets to visit family in the Netherlands, etc.
Pension accrual continues in the Netherlands + AOW accrual is paid separately by the employer during this period, so you do not lose 2% for every year that you are not domiciled in the Netherlands.
Unfortunately, I have not yet succeeded in getting an expat contract in Thailand. I fly to Thailand 4 times a year, then usually take 1 week off and then work 'home' from Thailand for a number of weeks, so that I effectively stay in Thailand for part of the year.
I am lucky that my manager works in Asia. He doesn't care if I'm in the office in the Netherlands/at home or 'At home in Thailand'. It's even handy that we have almost no time zone difference, and my internet connection (TOT fiber/Nakhon Nayok, 1200 bath per month) works perfectly, just like I work from home in the Netherlands.
Please note that this may not be completely legal under Thai or Dutch law.
22 years ago I worked in Thailand for 10 weeks for a Dutch boiler builder, with the annual statement my accountant applied the DENEKO scheme for tax deduction, i.e. if you worked outside Europe for longer than 45 days you got 30% of your wage tax back, I know I do not know whether this regulation still applies, but it is an interesting question for your accountant.