Since 2018, employment regulations for foreigners in Thailand have become more flexible. Previously, a foreign employee could work strictly at the address of the employer’s main office as stated in the Work Permit. Today, these restrictions are less rigid — but there are still important nuances.
Working in another province
If a foreign employee works on a permanent basis in a province different from where the employer company is registered, it is necessary to:
- Register a branch office of the company in that province
This provides a legal basis for working outside the main office.
Working in another company’s office
If an employee is physically located in another company’s office — even within the same province — this must be properly documented.
Possible options:
- A service agreement between the employer and the company whose office the foreigner works in
- Adding the second company to the Work Permit as an additional employer
Payments and VAT: key considerations
If a foreign employee provides services not to their employer and receives payment directly from another company:
- Such income is not considered salary
- It is not exempt from VAT
In this case:
✔️ The employer company must issue an invoice for services provided to the third-party company
✔️ The employee must receive compensation only from their employer — as salary or bonus
✔️ VAT is accounted for at the company level only
This approach allows you to legally justify a foreign employee’s presence in another office and reduce the risk of claims from tax authorities and labor inspectors.
Conclusion
While working outside the main office is possible, it requires proper structuring and documentation to remain compliant with Thai law.
Author: Alexandra Agapitova.
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