Baht Fixed Deposit Account With No 15% Withholding Tax

[Hugh Jarse]

Friend wants to put Baht 50 million on 12 month baht deposit without paying withholding tax.

If placed in Thailand there will be around Baht 400,000 tax (he does not file Thai tax returns).

Anyone, in particular some one resident in Lao or Cambodia, know the fixed deposit rates in local banks there where they have no witholding tax ? I know major Thai banks such as Bangkok Bank used to have branches in these 2 countries' capitals . Are they still there ?

Any info much appreciated as he wants to see how the land lies before going there.

[cclub75]

Friend wants to put Baht 50 million on 12 month baht deposit without paying withholding tax.

If placed in Thailand there will be around Baht 400,000 tax (he does not file Thai tax returns).

Anyone, in particular some one resident in Lao or Cambodia, know the fixed deposit rates in local banks there where they have no witholding tax ? I know major Thai banks such as Bangkok Bank used to have branches in these 2 countries' capitals . Are they still there ?

Any info much appreciated as he wants to see how the land lies before going there.

Laos or Cambodia ? Hum... I would prefer Singapore .

But since BOT is toying with THB and capital control... all the bank overthere (OCBC, DBS) seem to have stopped their Foreign Currency Time Deposit in THB.

HSBC in Hong Kong have. But with a ridiculous interest rate : 0.10 % !

Anyway, with such uncertainty regarding THB and economic policies of Thailand... is it reasonnable to bet 1.5 million USD in THB ? And with a maturity of 12 month ?

[topfield]

Yes , Lao and Cambodia offer the only option as Singapore have withdrawn from the baht market (at least publicly) This might have something to do with the negative publicity engendered by the Shin/Tamasek deal negotiated between the wife of the Thai Prime Minister and the wife of the Singapore Prime Minister .

The extent of this is shown by the fact that Channel News Asia , Singapore's only news channel now even omits quoting an exchange rate for the baht on its rate ticker !

So.....anyone got the info on the baht f/d rates in the above two countries ?

[Gaudente]

Friend wants to put Baht 50 million on 12 month baht deposit without paying withholding tax.

If placed in Thailand there will be around Baht 400,000 tax (he does not file Thai tax returns).

Anyone, in particular some one resident in Lao or Cambodia, know the fixed deposit rates in local banks there where they have no witholding tax ? I know major Thai banks such as Bangkok Bank used to have branches in these 2 countries' capitals . Are they still there ?

Any info much appreciated as he wants to see how the land lies before going there.

For what I know, there is no way to avoid the15% withholding tax if you deposit the money in a Thai bank. I think if you are resident you can file tax declaration and ask it back, but I am not sure.

In Singapore you pay no withholding tax at all, but I don't know if the bank can accept a THB deposit. Anyway considering the unimpressive interest rate on Thai baht, why bother ? Both Turkish Lira and Brazilian Real yeld double digit returns !

[Khun Bob]

Public Bank Laos gives 16% on LAK, no witholding tax and not pdifficult to open an account. Quite a few foreign banks in Vientainne...

I beleive that an austrialian bank have opened branches in cambodia - but not 100% - search on here is your friend

[jinjok]

wow...what a bad idea.

even thai banks are a gamble, but id go w/ SCB or HSBC or intl bank.

interest rates are intl and by the time you change/change back - you better be clever cuase your into arbitrage now buddy!

singapore

REUTERS: (VIENTIANE) Executives from Beer Lao Bank have apparantly walked away with 100,000,000,000 kip yesterday...

[topfield]

Friends...it's baht denominated accounts and only baht denominated accounts that are of interest.

Noticed that the Vientiane Branch of Bangkok Bank have deposit accounts with no withholding tax.

Anyone know the rates they are offering as there is a substantial tax saving to be had compared to baht onshore accounts and there cannot be much risk with Bangkok Bank

[Naam]

"In Singapore you pay no withholding tax at all, but I don't know if the bank can accept a THB deposit."

*****

no problem! i am holding since more than 2 years THB on various fixed deposit terms with my bank in Singapore. of course THB interest cannot be compared with TRY and BRL but i am holding these two currencies too. the latter in Brazil as BRL is not available in cash offshore. TRY fixed deposits require a minimum value of USD 100k = presently TRY ~143,000.-

by the way, Brazilian Real dipped yesterday FIVE percent against US-Dollar after COPOM reduced central bank rate from 13.5 to 13% but recovered all loss within a few trading hours.

[topfield]

"In Singapore you pay no withholding tax at all, but I don't know if the bank can accept a THB deposit."

*****

no problem! i am holding since more than 2 years THB on various fixed deposit terms with my bank in Singapore. of course THB interest cannot be compared with TRY and BRL but i am holding these two currencies too. the latter in Brazil as BRL is not available in cash offshore. TRY fixed deposits require a minimum value of USD 100k = presently TRY ~143,000.-

by the way, Brazilian Real dipped yesterday FIVE percent against US-Dollar after COPOM reduced central bank rate from 13.5 to 13% but recovered all loss within a few trading hours.

Thanks for that but as mentioned the Singapore banks I checked on are not dealing in baht. Even Channel News Asia has removed the baht from its ticker !

So we are left with Lao and Cambodia which DO accept baht deposits and have no tax. Anyone have the rates ?

[Naam]

"Thanks for that but as mentioned the Singapore banks I checked on are not dealing in baht."

*****

topfield,

Credit Suisse and UBS allow you to buy, sell and hold Baht without any restrictions. i don't know the regulations of other banks in Singapore. of course minimum amounts are required. the same applies for having your portfolio with them. nothing doing below USD 1 million.

swiss bankers were always high and mighty!

[Gaudente]

"Thanks for that but as mentioned the Singapore banks I checked on are not dealing in baht."

*****

topfield,

Credit Suisse and UBS allow you to buy, sell and hold Baht without any restrictions. i don't know the regulations of other banks in Singapore. of course minimum amounts are required. the same applies for having your portfolio with them. nothing doing below USD 1 million.

swiss bankers were always high and mighty!

and they also charge you a 0.2% custodian fee on your portfolio

[Gaudente]

Public Bank Laos gives 16% on LAK, no witholding tax and not pdifficult to open an account. Quite a few foreign banks in Vientainne...

I beleive that an austrialian bank have opened branches in cambodia - but not 100% - search on here is your friend

A communist country that charges no taxes on capital incomes ? What a laugh !

[Gaudente]

I beleive that an austrialian bank have opened branches in cambodia - but not 100% - search on here is your friend

Just been there. www.anzroyal.com

Anyway, they just pay a 6% on riel fixed deposits. Did not question about any withholding tax as I was absolutely not interested.

[topfield]

Public Bank Laos gives 16% on LAK, no witholding tax and not pdifficult to open an account. Quite a few foreign banks in Vientainne...

I beleive that an austrialian bank have opened branches in cambodia - but not 100% - search on here is your friend

A communist country that charges no taxes on capital incomes ? What a laugh !

Have no information on Lao except to say that as a general rule , in order to attract funds, hardly any countries charge tax on non resident foreigners depositing money in their country.

One of the few exceptions is of course Thailand but also in many cases the UK also...thats why UK expats deposit their money in Isle of Man and Channel Isles

[Gaudente]

Public Bank Laos gives 16% on LAK, no witholding tax and not pdifficult to open an account. Quite a few foreign banks in Vientainne...

What's the inflation rate in Laos ? Is the currency convertible (that is can you convert it back to $ and take it out of the country) ?

I am unable to find the Laos Central Bank website, does it exist ?

[Gaudente]

by the way, Brazilian Real dipped yesterday FIVE percent against US-Dollar after COPOM reduced central bank rate from 13.5 to 13% but recovered all loss within a few trading hours.

On Yahoo Finance graphic no such spike is displayed....what site do you use to monitor currencies ?

Also would you be able to find a graphic showing the $/LAK rate ?

I am unable to find the Laos Central Bank website...does it exist ? Any hint to find statistic about inflation, current account and other economic stuff ?

This 16% rate is making me willing to ask for my tourist VISA in Vientiane instead of Penang....

[cclub75]

I am unable to find the Laos Central Bank website, does it exist ?

It is located right after the gold pawn shop, next to the laundry, at the end of the soi in front of the noodle shop.

Allez, I don't want to be too harsh : http://www.bol.gov.la

I love their motto : "Peace, Independance, Democracy, Unity, Prosperity". Sounds so 1984....

[topfield]

To clarify as many readers have misunderstood !

Have NO interest whatsoever in riel or kip ...its B-A-H-T and a baht account which expats should be considering.

As long as the bank in question is sound then it makes sense to place ones baht in a country where there is no witholding tax, good rates of interest ( similar to those in Thailand) and no charges just for having an account (which rules out Swiss banks who by the way also have a hefty minimum charge).

Trust my point now understood and hope somebody will know the baht deposit a/c rate in the two neighbouring countries.

[Gaudente]

I am unable to find the Laos Central Bank website, does it exist ?

It is located right after the gold pawn shop, next to the laundry, at the end of the soi in front of the noodle shop.

Allez, I don't want to be too harsh : http://www.bol.gov.la

I love their motto : "Peace, Independance, Democracy, Unity, Prosperity". Sounds so 1984....

Getting lots of info there, thx.

[Khun Bob]

To clarify as many readers have misunderstood !

Have NO interest whatsoever in riel or kip ...its B-A-H-T and a baht account which expats should be considering.

As long as the bank in question is sound then it makes sense to place ones baht in a country where there is no witholding tax, good rates of interest ( similar to those in Thailand) and no charges just for having an account (which rules out Swiss banks who by the way also have a hefty minimum charge).

Trust my point now understood and hope somebody will know the baht deposit a/c rate in the two neighbouring countries.

I know a Swiss organisation that allows one to have several currency accounts (including Thai Baht) and has absolutely no charges for holding several accounts or sets any minimum balance and is not difficult to open an account - it is also entirely manageable on line - however I cant give this info out freely. But any swiss bank will impose a 30% witholding tax if you are EU resident and do not want you info reported to the relevant tax authorities. If you are officially non EU resident then you dont pay the witholding tax.

Anyone please PM me for further info. Normally this info is sold for $40+...

[Khun Bob]

16% for LAK was not the best available - this is just a standard savings account - most of the bank in vientaianne are foreign owned - easy to open an account but few have internet access. I'll find out how my money has faired next time i',m in Vientianne

Should be possible to get THB accounts in Malaysia - Labuan is a tax free area but there banks are archaic - all the banks i contacted dont have inet access and require you to visit/

Of course there is Hong Kong and Macau which have favorable tax conditions I beleive - not really explored this very much...

[Naam]

by the way, Brazilian Real dipped yesterday FIVE percent against US-Dollar after COPOM reduced central bank rate from 13.5 to 13% but recovered all loss within a few trading hours.

On Yahoo Finance graphic no such spike is displayed....what site do you use to monitor currencies ?

Also would you be able to find a graphic showing the $/LAK rate ?

I am unable to find the Laos Central Bank website...does it exist ? Any hint to find statistic about inflation, current account and other economic stuff ?

This 16% rate is making me willing to ask for my tourist VISA in Vientiane instead of Penang....

german website. very difficult to handle for non-germans.

http://isht.comdirect.de/html/search/main....amp;x=0&y=0

first graph BRL/USD with spike, second graph LAK/USD (one year)

Edited January 31, 2007 by Dr. Naam

[Naam]

"But any swiss bank will impose a 30% witholding tax if you are EU resident and do not want you info reported to the relevant tax authorities."

******

not applicable for swiss banks operating in Singapore. no taxes and no reporting even if you are EU-resident! by the way, the EU-withholding tax is presently 15% and will be raised on july 1st.

this information is free of charge

[Gaudente]

by the way, Brazilian Real dipped yesterday FIVE percent against US-Dollar after COPOM reduced central bank rate from 13.5 to 13% but recovered all loss within a few trading hours.

On Yahoo Finance graphic no such spike is displayed....what site do you use to monitor currencies ?

Also would you be able to find a graphic showing the $/LAK rate ?

I am unable to find the Laos Central Bank website...does it exist ? Any hint to find statistic about inflation, current account and other economic stuff ?

This 16% rate is making me willing to ask for my tourist VISA in Vientiane instead of Penang....

german website. very difficult to handle for non-germans.

http://isht.comdirect.de/html/search/main....amp;x=0&y=0

first graph BRL/USD with spike, second graph LAK/USD (one year)

Thx for the info. It seems the recent trend for LAK is up, perhaps it is already "object of desire" for high-yeld hunters. On this site I had found a more long term graphic http://asianbondsonline.adb.org/scripts/da..._Market_Name=LA

showing the currency was pegged to the $ at about 7500 until mid 2005, then had a sudden devaluation to 10500, after that seemed free to float and slightly recovered. Bargain ? Swindle ? I just hope to make up my mind when I visit the place in person

[Naam]

It seems the recent trend for LAK is up, perhaps it is already "object of desire" for high-yeld hunters.

just talked to my bank. LAK = no way.

[lannarebirth]

Public Bank Laos gives 16% on LAK, no witholding tax and not pdifficult to open an account. Quite a few foreign banks in Vientainne...

I beleive that an austrialian bank have opened branches in cambodia - but not 100% - search on here is your friend

Bad Idea Khun Bob. The dollar has been in a downtrend against most world currencies, but it's about 80% higher against the Kip in the past 3 years. Whatever you think you will earn in interest treturns will be lost (and more, likely) in currency devaluation.

Edited January 31, 2007 by lannarebirth

[Temporaneo]

Public Bank Laos gives 16% on LAK, no witholding tax and not pdifficult to open an account. Quite a few foreign banks in Vientiane...

Yesterday I found the e-mail address of Vientiane branch of Public Bank (which is a Malaysian bank) and inquired them about their fixed 16% LAK deposit.

Got the following answer :

We refer to your email and we are pleased to advise as follow:

- Our interest rate of 16% P.A is for KIP Fixed Deposit for the period of

15 months. Or 1 year and 3 months.

- We are able to converse from USD to Lao Kip for you in our Bank. In

additional,

- We are unable to change them back to USD

So it does not seem a wise investment as you get stuck in kip that are worthless outside Laos.

Bob do you know any way to convert Kip back to $ ? Are there any private moneychangers in Vientiane who give you $ for kip ? Did you actually invest money in kip fixed deposit ?

Edited March 15, 2007 by Temporaneo

[susah_sih]

Can try Acleda Bank in Cambodia. It's one of the best micro lending bank and it provides attractive interest rate also.

http://www.acledabank.com.kh/PB_fixedDeposit.asp

How to remit in USD

http://www.acledabank.com.kh/assets/pdf+zi...mittanceUSD.pdf

How to remit in EUR

http://www.acledabank.com.kh/assets/pdf+zi...mittanceEUR.pdf

How to remit in THB (can only be done from overseas Baht/ or only if you have Non residence Baht Account/NRBA in Thailand)

http://www.acledabank.com.kh/assets/pdf+zi...mittanceTHB.pdf

Friend wants to put Baht 50 million on 12 month baht deposit without paying withholding tax.

If placed in Thailand there will be around Baht 400,000 tax (he does not file Thai tax returns).

Anyone, in particular some one resident in Lao or Cambodia, know the fixed deposit rates in local banks there where they have no witholding tax ? I know major Thai banks such as Bangkok Bank used to have branches in these 2 countries' capitals . Are they still there ?

Any info much appreciated as he wants to see how the land lies before going there.