PEO/EOR Service
A Professional Employer Organization (PEO) service, also known as Employer of Record, provides a streamlined option for quickly hiring and onboarding employees in Thailand.
Utilizing our outsourced employment service avoids the costs and uncertainties of establishing a local company and allows quick access to the Thai Market.
PEO Service at a glance
Our PEO service allows you to enter the Thai market and start working as soon as possible. Our experts will handle the intricate details, so you can focus on other areas.
Skip the complexities of establishing a company, investing capital, and hiring local staff with our PEO service. Streamline your process while staying focused on your business objectives.
Our PEO service takes care of employee payroll and tax responsibilities, allowing you to concentrate on your core business activities with peace of mind.
Why work with VB Partners?
Embarking in a business venture in Thailand can be tricky. That’s why VB & Partners is here to help. Our comprehensive range of services covers every step, from initial business feasibility assessments to complete incorporation and running your business operations.
Navigating local laws and regulations is an essential concern for foreign enterprises. Our tailored packages are designed to ensure adherence to legal and local practices. Backed by a team of experts who are familiar with the Thai market and regulations, resulting in the smooth operation of your business.
What does this package include
Our team of experts will support you throughout both the pre-onboarding and post-onboarding processes, providing the following services:
- Advisory on optimizing the use of PEO services for according to your business and invoicing clients.
- Collection of necessary information from the employee and preparation of documents for the initial 3-month business visa.
- Accompaniment of the employee to the immigration office in Bangkok to secure the work permit and extend the visa to one year, inclusive of multi-entry stamps.
- Preparation of monthly payslips, tax filings, and management of human resources.
Price: + 7% VAT
What you must know before applying
Book a Call with our expert
Up to an hour consultation on the process of starting and running a business in Thailand.
During this session, our lawyer will provide insights into key areas, including company structure, outsourced employment services, taxes, accounting, and other general facets of running a business in Thailand. Additionally, we are here to address any other legal queries you might have, ensuring you have a comprehensive understanding of the topic at hand.
Our responses will be pragmatic, breaking down both the legal aspects and local practices in a manner that’s easy to grasp.
Should your questions require additional research, our experts will delve deeper and follow up with further insights via email.
This consultation is offered by legal experts fluent in English, French, or Thai.
Frequently Asked Questions
The Thai company is the legal employer, and as such, the employee is governed by Thai labor law regulations. Nevertheless, specifics such as roles, responsibilities, KPIs, quality standards, and other pertinent details can be outlined in a service agreement, as long as they align with the business activities of the Thai company.
PEOs are contractually obliged to pay wages and fulfill all taxation rules and regulations in Thailand. The PEOs will invoice the foreign employer on a monthly basis to collect the foreign employee salaries. Furthermore, the PEO service ensure that the foreign employee is paid ontime and relevant taxes have been withheld.
The minimum salary for a foreign employee is dependant on where they are from:
| Australia, Canada, Europe (except Russia) Japan USA | 50,000 baht/month |
| Hong Kong Singapore South Korea Taiwan | 45,000 baht/month |
| Other Asian Countries not listed Central and South America eastern Europe Mexico Turkey Russia South Africa | 35,000 baht/month |
| Africa (except South Africa) Burma Cambodia Laos Vietnam | 25,000 baht/month |
The tax obligations for employees in Thailand are as follows:
| Net Taxable Income (THB) | Tax Rate (%) |
| 0-150,000 | Exempt |
| Greater than 150,000 but less than 300,000 | 5 |
| Greater than 300,000 but less than 500,000 | 10 |
| Greater than 500,000 but less than 750,000 | 15 |
| Greater than 750,000 but less than 1,000,000 | 20 |
| Greater than 1,000,000 but less than 2,000,000 | 25 |
| Greater than 2,000,000 but less than 5,000,000 | 30 |
| Over 5,000,000 | 35 |
The employer withholds the employee's Personal Income Tax on a monthly basis (source tax), based on the projected annual salary income. Additionally, the employer deducts the social security tax, which is 5% of the employee's salary, capped at 750 Baht.
Employees are required to file their annual personal income tax return by April of the subsequent year. The final tax amount may be adjusted to account for deductions or any other taxable income that might have been earned or brought into Thailand. Our tax experts are on hand to assist our clients with personal income tax matters in Thailand.
In practice, the salary should correspond to the employee's role and experience and be sufficient to cover their living expenses.
It is essential to understand that the PEO is not just a facilitator but acts as both the legal and actual employer in Thailand. This means that employees working under a PEO are directly governed by, and must adhere to, the instructions and policies set by the PEO.
While there's flexibility in determining specific job roles, responsibilities, KPIs, and other work-related parameters — often established in a service agreement between the original company and the PEO — it's mandatory that all the outlined tasks and responsibilities fall within the official business activities of the PEO in Thailand. This ensures that the employment is genuine and not merely a workaround for visa provisions.
It's crucial to highlight the legal implications: Thailand prohibits entities from issuing work permits to foreigners if the primary or sole intention is just to secure a visa without genuine employment undertakings. Such practices can lead to severe penalties for both the PEO and the foreign individual.