Understanding the DTV Visa for Thailand: What Employers Need to Know

As Thailand grows as a hub for remote work and digital nomadism, the Thai government has introduced the Destination Thailand Visa (DTV). This new visa, especially the DTV1 (workcation) type, facilitates legal, extended stays for remote workers who want to experience Thailand's rich culture. For employers, especially those with employees interested in workations, understanding the DTV1 Visa and its regulations is crucial to avoiding compliance issues related to visas, social security, and tax.

‍

Importance of the DTV Visa and Compliance Risks

The DTV Visa is tailored for remote workers, digital nomads, freelancers, and entrepreneurs. It does not cover individuals intending to work directly for Thai companies; these individuals need a separate work permit and visa. This distinction is key for both employers and employees to understand, as incorrect usage could lead to compliance issues.

‍

Overview of the DTV Visa

Launched on July 15, 2024, the DTV Visa caters to individuals aiming to work remotely or participate in “Thai Soft Power” activities (e.g., Thai boxing, cooking classes, sports training). The visa is available to spouses and dependent children of DTV holders as well. Key features include:

• Validity: Five years, renewable

• Cost: Approximately 270€ (10,000 THB)

• Entry: Multiple entries allowed

• Eligibility: Digital nomads, freelancers, and entrepreneurs working remotely

• Income requirement: Proof of sufficient funds or income to sustain oneself during the stay

‍

Duration of Stay

The DTV Visa permits five-year multiple entries, with up to 180 days per stay, extendable once for another 180 days at the Immigration Office, totaling 360 days. After this period, individuals can re-enter the country to reset their stay period. Extensions require a 10,000 THB fee, and re-entry fees are waived. Note that individuals staying in Thailand for more than 180 days per year may become Thai tax residents, triggering tax obligations.

‍

Application Process

Applying for the DTV Visa can be complex, and the application fee is non-refundable. Working with a professional agency, such as WorkFlex, can help avoid common pitfalls and expedite approval.

‍

Working in Thailand with the DTV Visa

No work permit is required for DTV Visa holders employed by non-Thai entities under the workcation provision. However, working for Thai companies requires a separate work permit and visa. According to Thai tax laws, individuals staying in Thailand for over 180 days become tax residents, resulting in personal income tax obligations, which may also lead to employer wage tax requirements.

‍

Employer considerations

1. Social security: With the Digital Nomad Visa, the EE and ER declare that the Employee is working in Thailand for the Employer, as in order to get the visa a document is needed issued by the employer that the employee is allowed to work from Thailand for this time frame. The social security risk tied to Thailand's DTV Visa arises from the fact that Thailand operates under the principle of territoriality, meaning any work conducted within the country could subject employees to Thai social security contributions, regardless of whether they are employed by a non-Thai company. This becomes particularly problematic for employers from countries like Germany, which does not have a social security treaty with Thailand. As a result, employers may face the obligation to remit social security payments to both countries, creating a dual social security burden.  
   For German employers, while they can rely on the Ausstrahlung rule (§4 SGB IV) to maintain German social security coverage for their employees abroad, this does not exempt them from the possibility of simultaneous obligations in Thailand. Employees working remotely from Thailand for extended periods, under the DTV Visa, may trigger Thai social security liabilities due to the absence of a bilateral social security agreement.

2. Compliance and documentation: Employers should ensure that employees meet all DTV Visa requirements, including income verification and proof of employment. It is essential to consult with legal experts to ensure compliance with Thai and home country regulations.

3. Tax implications: Employers should adjust payroll processes to accommodate tax obligations in both Thailand and the employee’s home country. Additionally, corporate tax considerations like Permanent Establishment (PE) may arise, requiring further assessment.

‍

Other visa options in Thailand

Thailand offers various visa types beyond the DTV Visa:

• Non-Immigrant B2 Visa: For those working or conducting business in Thailand.

• Non-Immigrant B3 Visa: For frequent business travel.

• DTV Visa (Digital Nomad Visa): For digital nomads and freelancers, valid for up to a year, with possible renewal.

Each visa type has specific requirements, and employers should ensure their employees apply for the correct visa based on their planned activities.

‍

Conclusion

The DTV Visa is a major development for digital nomads and remote workers, providing a structured, legal way to live and work in Thailand. Employers can facilitate a smooth transition for remote employees by staying informed and consulting with legal experts.