Problem with interest from Krungsri?

[Orton Rd]

3 years ago I opened a mee tae dai saving account with krungsri and was told they would stop interest on it. Looking at the interest payments it just looked like they were stopping 15% but when I asked about claiming it back this week they said they had not been stopping tax and said the interest rate is now 1.3%. However looking back in the book it looks like payments do not tally with the interest rates, eg Dec had over one million in the account all month but the interest was 1.066 baht, when I asked them about it just got a blank look and no real answer if correct or not, how do they work interest payments out?

[poohy]

Withholding tax is indeed 15% ,banks deduct automatically 

To claim back you apply for tax certificate paid by bank each year and submit it to tax office and a cheque is issued after about a month

[topt]

If tax is being stopped then I would have expected it to be shown as a separate entry - a debit.

That is certainly how it has appeared in fixed accounts I have had.

 

There have been quite a few comments in other threads from posters who have this account so hopefully one of them will chime in with an specific answer. 

 

 

 

 

 

 

 

[Pib]

I have a MTD also.  They do withhold 15% "if you earn more than Bt20K interest per year" all all of your Krungsri accounts.    If you earn less than Bt20K total interest they do not withhold any tax.  

 

I don't see any tax withholding on your statement.  Do you see some?

 

Current interest since Oct 17 is 1.3%.  Remember that's an annual interest but you are getting paid monthly so you can't simply can't multiple 1.3% times to get your monthly amount without some special calculation. 

 

Look at page 13 of the Krungsri interest schedule to see how to calculate...partial quote below.   

 

And be sure then to multiply by the number of days from last interest payment....and keep in mind the Krungsri computers are looking at  your daily balance throughout the monthly period in doing their calculation.   When I do this using a Bt1,030,000 amount to kinda average out/estimate your balance for Nov to Dec interest period for a 29 day period I get an interest due of Bt1,063 which is real close to the Bt1,066 they paid you.

 

 

 

 

Edited January 4, 2018 by Pib

[Sophon]

 

You had a balance of THB 1,026,384.21 from November 29th until December 8th (9 days). At the current interest rate of 1.3% p.a. that earns you an interest amount of:
(1,026,384.21*1.3*9)/(365*100) = THB 329.0053

 

After that you had a balance of THB 1,035,439.66 from December 8th until December 28th (20 days). At the current interest rate of 1.3% p.a. that earns you an interest amount of:
(1,035,439.66*1.3*20)/(365*100) = THB 737.5735

 

That gives a total interest amount for December of 329.0053+737.5735 =1,066.5788 which is rounded up to THB 1,066.58 which is exactly the amount that was credited your account.

 

Sophon

 

[55Jay]

A tax withholding entry with Krungsi would be displayed as "TX".  

 

 

[Orton Rd]

Thanks for the replies, very helpful

[Pib]

On 1/5/2018 at 2:57 PM, 55Jay said:

A tax withholding entry with Krungsi would be displayed as "TX".  

 

 

Jay,

    You still got several MTD accounts with millions of baht in each I see.  I thought  you were going to move a lot of that money back to the U.S. due to Donald's big tax cut for businesses..   :)

 

[55Jay]

Just now, Pib said:

Jay,

    You still got several MTD accounts with millions of baht in each I see.  I thought  you were going to move a lot of that money back to the U.S. due to Donald's big tax cut for businesses..   :)

 

Ha ha, you poking fun at me again, Pib?   Yes, still here, waiting for the USD/Baht rate to crash a bit, around 29.xx, and then get it out of here.

[Pib]

Well, with it being FBAR time for some of us U.S. folks the fewer baht to the dollar makes it look like to the U.S. govt we have more dollars in Thailand.  But hey, you are right, if a person was moving money back to the U.S. the fewer baht to the dollar means more dollars ending up in your U.S. bank account....all depends on which direction a person is moving money.  Happy New Year.