Oorinara

On 1/21/2023 at 4:57 PM, Oorinara said:

17% Personal Income Tax (PIT) for High Skilled Pro (HSP)

 

Decree 743/2022 says 17% PIT on “assessable” income

https://ltr.boi.go.th/documents/Royal-Decree-743.pdf
 

In turn, generally progressive tax rates applicable to “taxable” income.

”Taxable” income = “Assessable” income - deductions - allowances (such as eligible insurance premium, Retirement Mutual Fund and Provident Fund)

https://www.rd.go.th/english/6045.html

 

Wondering if anyone knows 17% PIT for HSP on “assessable” or “taxable” income. Many thanks! 

I find 17% PIT for HSP is on “assessable (read: gross)” income, with neither deduction nor allowances such as Provident Fund and Retirement Mutual Fund.

 

So it’s not simply comparable with progressive tax rate which is based on “taxable (read: net)” income.

17% Personal Income Tax (PIT) for High Skilled Pro (HSP)

 

Decree 743/2022 says 17% PIT on “assessable” income

https://ltr.boi.go.th/documents/Royal-Decree-743.pdf
 

In turn, generally progressive tax rates applicable to “taxable” income.

”Taxable” income = “Assessable” income - deductions - allowances (such as eligible insurance premium, Retirement Mutual Fund and Provident Fund)

https://www.rd.go.th/english/6045.html

 

Wondering if anyone knows 17% PIT for HSP on “assessable” or “taxable” income. Many thanks! 

Kredit Microfinance also accepts account openings by nonresidents with passport and visa, presumably longer than 6 months, nowadays.
https://www.kredit.com.kh/


Sent from my iPhone using Thaivisa Connect

Microfinance LOLC avails nonresident account opening essentially with passport only.
http://www.lolc.com.kh/


Sent from my iPhone using Thaivisa Connect

Sathapana Bank allows passport bearer to open accounts. Sathapana used to be a microfinamce but is recently licensed as commercial bank after takeover by Maruhan Japan Group.
http://www.sathapana.com.kh/


Sent from my iPhone using Thaivisa Connect

Joint Development Bank (JDB) has also lowered fixed term deposit interest rate a few percents p.a.
http://www.jdbbank.com.la/


Sent from my iPhone using Thaivisa Connect

Microfinance EMI curtailed deposit rates in Kip effective July 2016

- saving 5%

- term deposit 10% for 1yr, 14% for 2yr

Phongsavanh Bank slightly lowered rates recently.

http://www.phongsavanhbank.com/psv/modules.php?lg=ENG&modules=interest_rates

Acleda Lao diminished almost all of USD and THB rates

http://www.acledabank.com.la/la/eng/ps_defixeddeposit

Newton Microfinance deposit rate (in Kip only)

http://www.newtonmfi.com/

(Website's rate not updated yet)

International Premium Certificate of Deposit

- 9% for 1 yr, 9.5% for 2 yr, 10.5% for 3yr (interest-upon-maturity basis, if monthly interest around 0.5% lower. Simple interest than compound)

Normal savings 3%

EMI interest rates (everything in Kip only)

http://www.emimfi.com/

normal saving 8% p.a.

fixed term deposit

- 10% for 6 mo.

- 12% for 1 yr

- 16% for 2 yr (simple interest, so around 13.4% p.a. in compound basis)

Fixed term's Interest payable on normal savings account. Seemingly no interest-upon-maturity product.

Off topic, but happen to remember that the Lao central bank's regulation limits exchange from Kip to foreign currency up to LAK 20 million (approximately USD 2,450) per day per pax since July 2013, if I'm not mistaken. Banks self regulate and further limit down to LAK 2 million or even less in practice.

16% annual interest can still be gotten from EMI for 24 month fixed deposits http://www.emimfi.com/emiweb/ . It's a microfinance institute, not a bank, but the service is good and you do not need a residence permit. Been around for over 10 years and was started with World Bank backing. I've had funds there for over a year and so far so good.

16% in Kip, Baht or USD, may I know? Anyway, thanks for useful info, David.

Now I find Lao MFIs accept only Kip. Exchange from Kip to foreign currencies is strictly limited to certain amount per day by regulations. So, it's good if one is prepared to spend most of deposit in local currency there or to go to the informal market.

16% annual interest can still be gotten from EMI for 24 month fixed deposits http://www.emimfi.com/emiweb/ . It's a microfinance institute, not a bank, but the service is good and you do not need a residence permit. Been around for over 10 years and was started with World Bank backing. I've had funds there for over a year and so far so good.

16% in Kip, Baht or USD, may I know? Anyway, thanks for useful info, David.

I was reading that the Bangkok Bank have recently opened a branch in Phnom Penh.

If you already have an account in Thailand you could open one in Cambodia with the same bank and transfer between the two.

Maybe lessens the risk of losing your money ??

Siam Commercial Bank has its subsidiary in Cambodia.

http://www.ccb.com.kh/

ABA, Canadia, Cambodia Asia (CAB), Cambodia Post Bank and Phnom Penh Commercial Bank (PPCB) are easy to open accounts with a passport and business visa (unsure if tourist visa). Personal appearance to the counter seems inevitable.

Lao is financially underdeveloped, so country risk remains high. Capital control such as capping foreign currency outward remittance is NOT put in place as of now, but you never know. Lao PDR's sovereign rating is BBB+ by TRIS, Thai rating agency.

http://www.trisrating.com/news/press-release/3688-mbk050615.html

Besides, Lao banks are poorly regulated and some may be imprudently managed. Higher return, higher risk.

So what is your personal take on depositing a significant amount of foreign currency for an extended period.

I think proportion of person's financial asset to Lao banks, rather than the amount per se, matter. I have 3-5 years deposit with some of them, but not that big proportion among my asset. Choosing prudent banks, and of course diversifying investment by currency, bank and jurisdiction etc. always may be inevitable.

I find that Bank of Lao PDR, central bank, has capped interest rates of Lao Kip, both deposit and loan, since 3Q 2015.

http://www.bcel.com.la/bcel/bcelweb-datas/file-path/deposit-interest/en/Deposit_Interest_Rate_Notice_20150928_Public_Eng_4.pdf

http://en.vietstock.com.vn/2015/08/commercial-banks-concerned-about-impact-of-lower-interest-rates-58-214103.htm

Foreign currency deposits are not subjected by these regulations seemingly, but may be affected, I'm afraid.

Lao is financially underdeveloped, so country risk remains high. Capital control such as capping foreign currency outward remittance is NOT put in place as of now, but you never know. Lao PDR's sovereign rating is BBB+ by TRIS, Thai rating agency.

http://www.trisrating.com/news/press-release/3688-mbk050615.html

Besides, Lao banks are poorly regulated and some may be imprudently managed. Higher return, higher risk.

If you deposit US$ in a Laos bank, how do you get them out of the country at the end of the term?

Do they pay you in US$ or in Lao Kip? Same for Thai baht, do they pay you out in Thai Baht or in Lao Kip?

In the same currency, you can withdraw and remit back to Thailand or elsewhere. No forex risk as far as USD and THB are concerned.

Did any of them sort out proper internet banking yet?

As far as I observe, BCEL and Joint Development Bank have Internet banking derive for nominal monthly fees. BCEL also mobile app. Haven't tried yet though.

you're too late.... interest rates are

Which bank?

This is BCEL but all banks have been ordered by the government to do the same.

Acleda Lao Bank and Indochina Bank, for example, show different rates, some part higher and others lower than BCEL. Has the Bank of Lao, central bank, capped interest rates???

http://www.acledabank.com.la/la/eng/ps_defixeddeposit

http://www.indochinabank.com/interest-rate.html

Acleda Bank seems to accept account opening by nonresident (see "Information and other requirements for opening, operating and closing account from overseas")

http://www.acledabank.com.kh/kh/eng/ps_deposit

Has anyone tried this recently?

Acleda at PP headquarters doesn't entertain application by nonresident, per my recent try.

Acleda Bank seems to accept account opening by nonresident (see "Information and other requirements for opening, operating and closing account from overseas")

http://www.acledabank.com.kh/kh/eng/ps_deposit

Has anyone tried this recently?