We have a question with regard to the 3 local employees to be hired in order to fulfil the labour quotas for the Representative Office (RO). The RO clearly needs to hire staff within the limits of Thai labour law and RO regulations. This means complying with labour quotas and also carrying out non-revenue generating activities only.
My question is as follows:
The RO will be the employer of the local Thai staff as well as the foreign staff, and all of them will work at the Supplier’s premises. If the Supplier then reimburses the RO for the cost to the RO of employing the local staff, would such reimbursements be considered to be income for the purposes of RO regulations?