Jingthing Posted February 1, 2007 Share Posted February 1, 2007 I've got some semi serious amount of baht at Siam Commercial bank (retirement visa stash) and surprise, surprise, they are paying me interest on it. This is the ONLY income I am earning in Thailand. Is there a requirement to file a Thai tax return due to this? I am hoping not, but also thinking that I will need to report the income on my U.S. tax return; the US knows about all foreign bank accounts from SWIFT records. Link to comment Share on other sites More sharing options...
naka Posted February 2, 2007 Share Posted February 2, 2007 I doubt the US IRS or the Thai equivalent would be interested in such a paltry sum. Naka. Link to comment Share on other sites More sharing options...
samtam Posted February 2, 2007 Share Posted February 2, 2007 (edited) I think you'll be paying Thai (15% withholding tax) on your deposit anyway. It's deducted at source. Edited February 2, 2007 by samtam Link to comment Share on other sites More sharing options...
Jingthing Posted February 2, 2007 Author Share Posted February 2, 2007 I doubt the US IRS or the Thai equivalent would be interested in such a paltry sum. Naka. Its not that paltry. Link to comment Share on other sites More sharing options...
Guest madcow Posted February 2, 2007 Share Posted February 2, 2007 I've got some semi serious amount of baht at Siam Commercial bank (retirement visa stash) and surprise, surprise, they are paying me interest on it. This is the ONLY income I am earning in Thailand. Is there a requirement to file a Thai tax return due to this? I am hoping not, but also thinking that I will need to report the income on my U.S. tax return; the US knows about all foreign bank accounts from SWIFT records. Just a matter of interest , what interest rate are you getting , and which bank ? Link to comment Share on other sites More sharing options...
talatnat Posted February 2, 2007 Share Posted February 2, 2007 I've got some semi serious amount of baht at Siam Commercial bank (retirement visa stash) and surprise, surprise, they are paying me interest on it. This is the ONLY income I am earning in Thailand. Is there a requirement to file a Thai tax return due to this? I am hoping not, but also thinking that I will need to report the income on my U.S. tax return; the US knows about all foreign bank accounts from SWIFT records. Yes, you need to report the Thai-bank's interest to IRS on line 8 of 1040. Also, you also have to attach schedule B and declare that you have foreign banks and trust accounts (in Part III) at the end of the schedule. Finally, if you have more than $10,000 (aggregated total of all foreign accounts) at ANY time during the year, you have to report the accounts separately to the U.S. Treasury (not to IRS or with your return, and to a separate address). I forget the form number, but it's on the IRS site. The IRS tax advisor who was in BKK last year pointed out that failure to declare these accounts can result in a 100% (of the account's value) fine! Since most retirees (and marriage-extension visa) holders will have to show 400 K and 800K in Thai banks, this reporting of the Thai accounts to US officials also becomes mandatory. Link to comment Share on other sites More sharing options...
Jingthing Posted February 2, 2007 Author Share Posted February 2, 2007 Thanks Talanat. Sounds like good info. Not sure of my interest rate. The account is at Siam Commercial Bank. Just a regular baht savings passbook account. So, they do take out Thai tax? I don't see that transaction in the passbook. Does anyone know what exact percentage they do take out? Link to comment Share on other sites More sharing options...
topfield Posted February 2, 2007 Share Posted February 2, 2007 I've got some semi serious amount of baht at Siam Commercial bank (retirement visa stash) and surprise, surprise, they are paying me interest on it. This is the ONLY income I am earning in Thailand. Is there a requirement to file a Thai tax return due to this? I am hoping not, but also thinking that I will need to report the income on my U.S. tax return; the US knows about all foreign bank accounts from SWIFT records. Hi Jingthing, Whether you are aware of it or not you ARE already taxed in Thailand as a 15 percent withholding tax would have been applied to any interest earned on your account. Re US tax......sorry cannot help as know nothing about your tax system. Link to comment Share on other sites More sharing options...
Firefan Posted February 2, 2007 Share Posted February 2, 2007 Let's see: if hold Baht 800k. You get 0.75% interest = Baht 6000. Auto deducted(by bank) 15%(900 Baht) withholding tax. Leaves 5100 Baht in interest paid out. Quite a few beers! Cheers! Link to comment Share on other sites More sharing options...
topfield Posted February 2, 2007 Share Posted February 2, 2007 Let's see: if hold Baht 800k. You get 0.75% interest = Baht 6000. Auto deducted(by bank) 15%(900 Baht) withholding tax. Leaves 5100 Baht in interest paid out. Quite a few beers! Cheers! Ah , but what if one is getting 5 percent on a fixed deposit (which was available up to last week.) On 800K that is Bt40000 in gross interest, so Baht 6000 in that case would be withheld. Link to comment Share on other sites More sharing options...
Firefan Posted February 2, 2007 Share Posted February 2, 2007 True but OP clearly stated it was a normal savings account AND some officers have not accepted the time deposits as retirement stash (as not liquid). Finally; Tax is automatically withheld so should only worry about the US taxes. CHeers1 Let's see: if hold Baht 800k. You get 0.75% interest = Baht 6000. Auto deducted(by bank) 15%(900 Baht) withholding tax. Leaves 5100 Baht in interest paid out. Quite a few beers! Cheers! Ah , but what if one is getting 5 percent on a fixed deposit (which was available up to last week.) On 800K that is Bt40000 in gross interest, so Baht 6000 in that case would be withheld. Link to comment Share on other sites More sharing options...
naka Posted February 3, 2007 Share Posted February 3, 2007 Let's see: if hold Baht 800k. You get 0.75% interest = Baht 6000. Auto deducted(by bank) 15%(900 Baht) withholding tax. Leaves 5100 Baht in interest paid out. Quite a few beers! Cheers! So it is a paltry sum as far as the IRS is concerned. Doubt they'll be tapping your phone anytime soon. Forget about it. Naka. Link to comment Share on other sites More sharing options...
fxm88 Posted February 3, 2007 Share Posted February 3, 2007 Finally, if you have more than $10,000 (aggregated total of all foreign accounts) at ANY time during the year, you have to report the accounts separately to the U.S. Treasury (not to IRS or with your return, and to a separate address). I forget the form number, but it's on the IRS site. See also: http://www.thaivisa.com/forum/index.php?showtopic=68680 http://www.thaivisa.com/forum/index.php?showtopic=81360 Link to comment Share on other sites More sharing options...
Firefan Posted February 3, 2007 Share Posted February 3, 2007 Yeah, not exactly an interest sum the IRS will hunt you down for, BUT having $22,000.- in a Thai account probably needs to be reported. Cheers! Link to comment Share on other sites More sharing options...
simon43 Posted February 3, 2007 Share Posted February 3, 2007 I'm so glad I'm not a yank - having to tell them about your non-US earnings? what a cheek!! Simon Link to comment Share on other sites More sharing options...
Jingthing Posted February 3, 2007 Author Share Posted February 3, 2007 (edited) I'm so glad I'm not a yank - having to tell them about your non-US earnings? what a cheek!! Simon The beast must be fed. Our passports make impressive bookends. We have a secret handshake. You are missing alot. Filing US taxes as an expat is an unadulterated pleasure. We are now accepting your application for US citizenship. Are you now or have you ever been a communist? Edited February 3, 2007 by Jingthing Link to comment Share on other sites More sharing options...
katom Posted February 5, 2007 Share Posted February 5, 2007 how much money can get for 2+ Milion baht in thai bank? Link to comment Share on other sites More sharing options...
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