Expenses incurred by a company for obtaining and renewing business visas and work permits for its foreign employees in Thailand are generally considered ordinary and necessary business expenses.

These costs are essential for the legal employment of foreign staff, enabling them to work and reside in Thailand, and are therefore deductible for Corporate Income Tax (CIT).

The deductibility of expenses for their spouse’s visa is more complex and often considered non-deductible or at higher risk of being disallowed during a tax audit.

General Criteria CIT Deductibility

• The foreign employee is genuinely employed by the company.
• The visa and work permit are necessary for the employee to perform duties.
• Expenses are reasonable and directly related to the application process.
• Not considered a personal benefit to the employee if paid directly by the company.
• Must comply with immigration and labor laws.

Documentation Needed For CIT Deduction

• Official receipts from the Immigration Bureau and Department of Employment.
• Invoices from legal or consulting firms assisting with the process.
• Proof of payment (e.g., bank transfer slips).
• Copies of the employee’s visa, work permit, and employment contract.
• Internal approval or memo for the expenditure.

References

• Thai Revenue Code, Section 65 ter (3)
• Immigration Act B.E. 2522
• Alien Work Permit Act B.E. 2551