แสดงบทความที่มีป้ายกำกับ thailand immigration แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ thailand immigration แสดงบทความทั้งหมด

วันศุกร์ที่ 5 มิถุนายน พ.ศ. 2558

THAI LAW - Sticky Situations

THAI LAW - Sticky Situations

Thai law
Thai law


                    Thai law | In the last two weeks, I have been appointed the legal representative and advisor for the Indian embassy in Thailand. They required for me to handle the transfer of land to the Indian embassy for the construction of the house of the local ambassador, as such I had found my way to the land department to see this through. While waiting for the process I noticed an American man with a Thai partner in an argument in front of an officer of the land office. They didn’t understand each other and also misunderstood or didn’t understand what the land officer was trying to explain to them with regards to tax. I was sitting next to them and understood what all parties were trying to achieve, when things began to get heated I asked if they would mind if I can help give the man the explanation.


                    So the story of the American man is when he arrived in Thailand four years ago he had bought a condominium under his name and that day at the land department he planned to sell it. The problem that was holding up the sale was that he felt he had to pay too much tax, he explained to me that he had to pay 2% tax for the transfer fee as he had promised the buyer that he would take care of this as well as a 3.3% special tax to the land department which were also requiring him to pay personal income tax. He did not want to pay and as such the officer would not let the transfer go through, as his partner did not know the tax system and cannot give a proper explanation and with the officer unable to speak English. The man began to fight with his partner and the officer very loudly, this is when I chose to step in and introduce myself.


                    Although the man was skeptical he allowed me the chance to explain to him why he had to pay so much tax, I started by pointing out that the 2% transfer fee is necessary under Thai law  whenever there is a transfer of property from one party to another. This fee by law must be paid fifty-fifty between the buyer and the seller unless the contract states that one party will pay it in full which was true in his case. The 3.3% special tax is required to be paid by the seller on the condition that the property which was purchased is being sold in less than five years of the purchase date. This tax is for business people who make a profit from buying and selling property and as the man had only bought the property four years ago, he was eligible to pay it. Lastly the personal income tax is required to be paid by anyone who receives income in Thailand, this can be anyone from company employees, to retirees on a pension coming from abroad or the income generated from the sale of a property. The way to calculate personal income tax and any tax breaks are a bit difficult to explain and we will summarize them in a future article.


                    So when you are transferring property you have to pay the government transfer fee of 2%, a special tax of 3.3% if you are selling the property within five years of purchase and your personal income tax or the transfer will not be allowed to go through.


THAI LAW - Sticky Situations


วันจันทร์ที่ 1 มิถุนายน พ.ศ. 2558

THAI LAW - Property guide to Thailand

THAI LAW - Property guide to Thailand


Thai law
Thai law

                            Thai law |  A common question asked of me is about foreign ownership of property in the Kingdom of Thailand, how foreigners can get full ownership and what the best way to go about it is. The answers all vary depending on the situation of the prospective owner but I will try to give a general guide to those looking to invest in the Thai property market. First up are condominiums, buying a condo in Thailand enables you to have full ownership and your name as the owner. But there are some conditions; when buying the condo you will have to transfer the money used for purchase from overseas, also every condo is only allowed a limited number or foreign owners. This is dependent on the number of rooms but the ratio must not exceed forty nine percent foreign ownership and fifty one percent Thai ownership, please double check this statistic with the seller before purchase. If it does exceed the ratio limit you will have to form a company with which you will use to buy the condo. One more thing to look out for is outstanding fees whether it is electric, water or common property fees as the condo owners will not allow you to transfer the property into your name if they are not paid and you may be the one who has to fork up the extra charges.


                             If you are looking at a land and house or only the land, you will have to set up a company for ownership. We recommend a number of things you can do to protect yourself as a foreign purchaser; firstly after setting up the company you should put yourself as the sole managing director, so you have sole control. Secondly you have to set up the company with preference shares which you have the right to own forty nine percent, but with the number of votes set to ten per share. This will give you the majority whenever you need to vote on a company matter. Thirdly whichever nominee shareholder you put in place must sign the shares back to you, also the documentation should be kept in safe storage or even in your home country but away from the company. Number four always keep important documents in safe keeping, if say someone else has the original copy of the shareholders certificate they may use it for their own purposes. Make sure that the owner is the one holding on to all the right documentation.


                             Here are some alternatives such as agreeing to only purchasing a house which can be put in your name as it is classified as movable property. This is a growing trend in foreigners now and involves putting the land in a spouses name and then long leasing it from them, another option is to put the land under a company that they own. On the topic of leases the longest lease in Thailand is a lifelong lease on either the life of the leaser or leasee with the next longest being over a thirty year period. Before Thailand had rolling lease with three intervals of thirty years each but this is not the case anymore as under Thai law, this is now illegal.


                             We will always recommend anyone looking to purchase a property to contact a lawyer, don’t do it by yourself or believe some Thai person who says that it is easy. A lot of people are cheated in this business and have lost a lot of money as well as many a property, by protecting yourself you are ensuring you have the best possible chance to secure a new property safely and with no problems down the line. The lawyer fee for a service like this should consist of two things; the first a sales and purchase contract and secondly for when you have the property transferred to you and you receive the title deed in your hand, and only then would you have to pay.


THAI LAW - Property guide to Thailand


วันพุธที่ 27 พฤษภาคม พ.ศ. 2558

THAI LAW - Flood and Insurance

THAI LAW - Flood and Insurance  


Thailand law
Thai law


                            Thai law | At this time if there is anyone not talking about the flood situation here in Thailand it would seem to be that those people are not in trend right now. Because our main office is located in the heart of Bangkok we have seen many things affect the capital from the last few years and this year again it is no different. From the yellow shirt protest which closed down the main airport three years ago to the red shirt protest two years ago in the Ratchaprasong area, but this year it did not come from any colour but from nature itself. As many people can attest the power of nature is more powerful and devastating than that a human protest with many lives and homes being swept away. Because of the severity of the situation we will be forced to close the main office for some time, but even while we are still running there are few people left let alone out and about in this part of the city. In fact only around a tenth of the usual amount of people are still here, this has made traffic scarce and you can travel on a road in any direction and a trip that would take you hours before would only take five minutes right now.


Thai law
Thailand law


                            So the topic we will discuss today is insurance from the flood situation happening now, especially regarding motor vehicles. If you look at the local news on the television or even on newspapers you will have seen many flooded cars and motorbikes on the streets on Bangkok. Most owners will have insurance but I have to tell you that maybe they will not cover your vehicle because of the extensions in their insurance policy. Even if they do have to cover something they will try to find ways around it, an example is this if a car engine is damaged by the flood for a long time and the engine develops rust and cannot function properly. The insurance company will consider only repairing the engine with the smallest amount of money possible, they will never allow a full engine change. Many things like this will happen in the coming months as the insurance companies will be responsible for a huge number of flooded cars, and you will see the extensions of your insurance policy that you have never seen before. Under Thai law, an insurance company is obligated to honour their agreement with you to the letter.  Failing this they can be taken to court.



                            It will be a hard process to go through from the insurance companies saying no to fix your vehicle in the proper way. This is the main reason that insurance companies do not grow fast in Thailand, because the insurance companies will always try to say no and if they are obligated to pay they will make it very hard to do so making the customers not happy with the service they have paid for. Another thing you should know is that if you have an old car the parts they will use to repair your vehicle will either be second hand parts or parts from a copy brand not the original parts from the manufacturer. They will try to do everything they can to reduce costs. We have the experience in the court where an insurance company did not want to pay more than two hundred thousand baht when they were legally obliged to.  If you ask to claim that much money from them the company will fight with you in the Thai court, they have their own lawyers, who they will use to delay and play with you for up to three to seven years.


Thailand law
Thai law
                            This is the good chance for you to learn a lesson about the insurance companies here in Thailand. You have to make sure that the insurance policy that you take out for yourself is proper, with too many extensions so the insurance companies have to pay up and cannot get out of it so easily. You need to read through the agreement thoroughly if needed you can make amendments for some of the extensions by paying a premium, if you leave it until the situation happens it will already be too late.


THAI LAW - Flood and Insurance


วันอังคารที่ 31 มีนาคม พ.ศ. 2558

THAI LAW ,THAILAND LAW- Agents and Clients

THAI LAW ,THAILAND LAW- Agents and Clients


Actual Case:

Thailand law
Thai Law

              Thai law,Thailand law |  Quite recently I had been given a case about a dispute regarding the sale of a condominium unit owned by a foreigner. The owner, who had just returned from overseas on getting news that there was a prospective buyer was not happy with the deal as money had already changed hands without his approval. Also he had not met anyone at all face to face and did not have all the details of the case. Having been in contact with his assistant and the juristic person at the condo he had seen a copy of the sales contract and had some idea about the details of the agreement to be made.




Thai law
Law Firm Thailand
But he had constantly stressed that he wanted a certain amount net after deducting taxes and fees to take home with him as he was planning to leave the country. What he did not know was that secretly his assistant was the one making the deal to sell the condominium; he had gotten in contact with an agent who found another foreign client who was interested. Usually in the case of property sale and purchase an agents commission is usually around 3 – 4% but as the secretary was the one negotiating the deal without the knowledge of the owner he wanted his own commission of 3%. This is fraud under Thai law.



           After being pressured to quickly agree to the deal by his assistant the owner signed the contract documents and then sent them back, the assistant used these to confirm the owner’s compliance and set the deal in motion. What the owner later discovered was that there would be specific business tax and income tax which would need to be paid to the amount of around one million Thai baht that wasn’t included in the deal. The buyer then transferred the deposit amount which was split in three between the agent, assistant and the owner. Not knowing who had taken his money or why the owner stopped the deal and wanted to know what was going on.


             After returning to the Kingdom of Thailand a meeting was setup and all parties were asked to attend except for the buyer as he was not in the country at the time. The agent who did not why the deal was stopped and what was going on was made to look like the wrong party who had stolen the money transferred from the buyer, but this was not the case. The agent was an innocent party and only took money which was rightfully theirs as it was commission from the sale. When we were asked to explain the details to them and fill them in we discovered that the secretary was the one in the wrong, he had no right to anything from the deal and from the emails there was incriminating evidence against found against him.

         Using this news the assistant was asked to return the money or charges would be pressed against him both by the buyer and the seller, the owner then made a new agreement with the agent and the buyer excluding the assistant and using his share to pay for the outstanding tax before the transfer could be complete. Whenever you want to make an agreement with anyone you should always keep evidence, sometimes emails, contracts or various other proof can help tie the other party to comply with their end of the bargain. By protecting yourself you will make sure that you will not lose a lot of time and money at the end of the story like the one from this case.



THAI LAW ,THAILAND LAW- Agents and Clients

วันเสาร์ที่ 7 มีนาคม พ.ศ. 2558

Thai Immigration | Tourist Police in Thailand

                    Thai Immigration | Tourist Police in Thailand

thai immigration law in Thailand
Thai immigration law

                          Being a tourist in Thailand can be a wonderful experience, seeing the sights, experiencing the rich culture and taking in the atmosphere of this special Kingdom. The first thing a tourist are checked  by  Thai Immigration when they arrive in Thailand. But don’t worry too much about Thai Immigration .The people of Thailand will greet tourists with a smile and try to help you with any problems that they might have, whether it is providing directions or giving advice on what you should order at a Thai restaurant. But this is not always the case, sometimes tourists are short changed or cheated and what can they do in his foreign land which is not their own.
           
                         Some time ago a German couple visited the Kingdom of Thailand for a holiday and chose to stay at a beachside town. During their stay they rented a beach front apartment from a landlady that they had contacted from an internet advertisement. Over the next few weeks they enjoyed their time off and soaked in the sun by the sea shore, but when it came time for the couple to return home. The couple was shocked to find that the deposit they had put down for the apartment was not going to be returned. The landlady had complained to them when she checked the room that there was some damage done and that the deposit will be taken as collateral.



                          The German man being sure that the damage she had specified was not caused by him or his partner argued his case, but the landlady would not listen. Being sure he was being cheated the German man did not know what to do, he did not want to lose his deposit and he would be leaving the country in the next couple of days. His partner not wanting to cause trouble with the locals and not knowing where to turn to for help, tried to persuade the German man not to fight and just let the situation be. The German woman also did not want to get caught up in a foreign justice system that they did not understand. But the man was quite adamant of being right and tried to at least find a solution to their problem.


thai immigration law in Thailand
Thai immigration

                       Using the internet the German man found the Tourist Police hotline and contacted the number immediately. He explained their situation and arranged to have an officer come to help resolve the case. When the officer arrived the German man told the story to him again and asked the officer to speak with the landlady. After hearing both sides of the story the officer reported in with the station with the details he had gathered. Whilst investigating the report the officer found out that the landlady had a record of manipulating foreign clients out of their deposit through unfair means and that the German couple was not the first victims of this scheme. Returning with this evidence the Tourist Police officer confronted the landlady and questioned her about it. Knowing that this could lead to severe legal problems the landlady promptly returned the deposit and apologized to the couple.


                                 Our comment: Tourist Police have to be involved in almost everything about tourists different from Thai Immigration because it is their duty to give information and advice to foreigners visiting the Kingdom of Thailand. But it turns out that tourists are suspicious of the Tourist police. By having the power to detain suspects, bring charges against them, investigate cases ,such as not having a driver’s license and can arrest criminal offenders. But this is not true, Tourist police only have the authority to arrest suspected criminals but are not involved with any further processes of the law such as pressing charges or investigating cases. These tasks are forwarded to the District police station to be processed by standard police officers. It is not their duty to perform these tasks as the Tourist Police are here to assist foreign travelers in the country rather than to persecute offences committed by tourists. About Thai Immigration , their duty to check people who come to Thailand. So Thai Immigration and Tourist police are quit different.