Taxes Thailand sending money to Thai Bank

[Pib]

7 minutes ago, PFV said:

Does this mean that dividends imported in the year they are earned would indeed be taxed in Thailand, but that the US tax should be capped at 15% ?

BTW, it appears that interest is treated the same way (Article 11).

Sounds like it.   But the probability of Thailand coming after taxes on dividends earned in another country is probably close to zero. I expect it would only occur if the person filing a Thai tax return declared the income on the tax return; not Thailand somehow finding out about the dividends paid during a year and coming after you like how the IRS might audit a person.

[Speedhump]

3 hours ago, simoh1490 said:

Correct, the interest earned is taxable, the principle is not.

 

EDIT TO ADD: Technically, income that is remitted to Thailand during the year it was earned, by residents, is taxable. In practice the Thai Revenue does not attempt to tax that money because it is nigh on impossible for them to distinguish between earned income and savings from overseas sources. It is possible that there is a link between this issue and the self dec certification issue for visa's that is so much in focus currently, dunno, pure speculation on my part.

Thanks, guys. My interest would certainly be below any taxable threshold, so if the bank deduct tax as they apply the savings account interest each quarter, I'm being stolen from, but the amount is negligible, and I would not bother to try to claim a reimbursement! 

[moogradod]

3 hours ago, simoh1490 said:

EDIT TO ADD: Technically, income that is remitted to Thailand during the year it was earned, by residents, is taxable.

The important phrase here is "by residents" (meaning by persons that have been in Thailand for more than 180 days in the calender year in question = tax resident, Thai or foreigner). For "non-residents" income is only taxable if derived within Thailand. This does even apply to Thai citizens if they live abroad - at least I think so. If anybody knows for sure I would be interested to know as well.

[simoh1490]

8 hours ago, topt said:

 

Agreed however potentially this is also the current case from what I understand from reading posters who talk about direct deposit of their pensions. If not coming directly but just from a bank account the thai revenue service would still not necessarily know it was not from previous accumulated savings.

Agreed also. The workaround I think is to have the pension payments deposited in a bank overseas and then remit payments to Thailand from that account separately, that overseas account might contain a blend of income and savings thus the remittance to Thailand cannot be seen exclusively as income earned in the current year.

[simoh1490]

7 hours ago, Speedhump said:

Thanks, guys. My interest would certainly be below any taxable threshold, so if the bank deduct tax as they apply the savings account interest each quarter, I'm being stolen from, but the amount is negligible, and I would not bother to try to claim a reimbursement! 

I'm pretty sure you'll find that banks are obliged to make those tax deductions, regardless of the type of savings account, the amount on deposit or the duration. The fact that some banks monitor the amount of interest paid and don't make those deductions, in some cases, is more a reflection of some banks having capable back office systems which permit them to offer this type of facility.

 

Re. Tax Refund: I would urge any foreigner in Thailand who is eligible to reclaim their tax, the process is efficient, friendly and very straightforward - of all the Thai government departments The Revenue is the easiest and least painful to deal with, it can actually be a fun experience since the girls there will do your tax return for you, as long as you give them the letter from the bank showing the amount of interest withheld.

[TPI]

Shhh! Idiot, you should stop typing when you are drunk!!

[SCOTT FITZGERSLD]

9 hours ago, Pib said:

Yea....with a fixed account they deduct the withholding tax anytime interest is paid.  With the fixed accounts I had they did not pay monthly but only upon maturity.   I don't do fixed accounts anymore....instead I use a Krungsri Mee Tai Dai account which currently pays 1.3% interest....pretty close to fixed account interest and around 3 times higher than a regular savings account.....and I can withdraw money at any time without any interest penalty like on a fixed account...and it comes with ibanking and a debit card.    I just ensure the balance I keep combined with the interest rate does not result in earning more Bt20K interest per year which would trigger a 15% withholding.  Although it's not a hard process to get the withholding refunded as I did such for around 4 years when still using fixed accounts, I prefer not to have to file for a refund.

 

DO krungsri offer also USD accounts>

[macahoom]

12 hours ago, simoh1490 said:

UOB, 1.7%, 14 months - you can cash out at any time with only a loss of interest earned (which is replaced with the standard rate of savings interest).

 

Until the end of this month, CIMB: 2.5% fixed for 24 months.

Maximum: 1 million baht.

[simoh1490]

52 minutes ago, macahoom said:

 

Until the end of this month, CIMB: 2.5% fixed for 24 months.

Maximum: 1 million baht.

I very much doubt that is a fixed rate deposit, at 2,5% it looks very much like an insurance product or similar, be careful. If CIMB were offering 2.5% for 24 months they are betting that the Thai central bank rate will be at least 2.75% in 24 months time, banks don't typically do that sort of thing. BTW there's a thread on the subject of interest rates at banks in Thailand, perhaps check there. 

 

EDIT: I just checked, it's a monthly savings scheme, not a fixed rate/term deposit. https://www.cimbthai.com/en/personal/products/accounts/fixed-deposit-account/phemkha-sabai-jai-fixed-deposit.html

[macahoom]

48 minutes ago, simoh1490 said:

I very much doubt that is a fixed rate deposit, at 2,5% it looks very much like an insurance product or similar, be careful. If CIMB were offering 2.5% for 24 months they are betting that the Thai central bank rate will be at least 2.75% in 24 months time, banks don't typically do that sort of thing. BTW there's a thread on the subject of interest rates at banks in Thailand, perhaps check there. 

 

EDIT: I just checked, it's a monthly savings scheme, not a fixed rate/term deposit. https://www.cimbthai.com/en/personal/products/accounts/fixed-deposit-account/phemkha-sabai-jai-fixed-deposit.html

 

I'm pretty sure it's 2.5% fixed for 24 months, maximum one million baht.

 

Promotion for month of November only.

 

I'm going to stick 800k in it for immigration.

[simoh1490]

1 minute ago, macahoom said:

 

I'm pretty sure it's 2.5% fixed for 24 months, maximum one million baht.

 

Promotion for month of November only.

 

I'm going to stick 800k in it for immigration.

That's virtually unheard of, no other bank even comes close, they would be massively out of step with the market and historic practice - I'm going with it being a monthly savings account rather than a lump sum deposit, I'll check at CIMB today however.

[macahoom]

1 minute ago, simoh1490 said:

That's virtually unheard of, no other bank even comes close, they would be massively out of step with the market and historic practice - I'm going with it being a monthly savings account rather than a lump sum deposit, I'll check at CIMB today however.

 

Good lord!

 

Here it is: https://www.cimbthai.com/en/personal/news-and-promotions/promotions/promotion/promo-021011.html

[Pib]

4 hours ago, simoh1490 said:

I'm pretty sure you'll find that banks are obliged to make those tax deductions, regardless of the type of savings account, the amount on deposit or the duration. The fact that some banks monitor the amount of interest paid and don't make those deductions, in some cases, is more a reflection of some banks having capable back office systems which permit them to offer this type of facility.

 

Re. Tax Refund: I would urge any foreigner in Thailand who is eligible to reclaim their tax, the process is efficient, friendly and very straightforward - of all the Thai government departments The Revenue is the easiest and least painful to deal with, it can actually be a fun experience since the girls there will do your tax return for you, as long as you give them the letter from the bank showing the amount of interest withheld.

Ditto...well said.   

 

And just for others listening in and mostly to repeat what simoh1490 said, Thai banks are just following the law Like in a person's home country were an employer withholds different types of taxes from their paycheck because it's the law.  Thai banks are just following the law.

 

And obtaining a refund is an easy process....just file a tax return or refund request (depends on what your local revenue office requires), they will probably fill most of the form out for you if requested and you just need to sign (they are really helpful in this process), and in a month or so you have your tax withholding back.

[simoh1490]

8 minutes ago, macahoom said:

 

Good lord!

 

Here it is: https://www.cimbthai.com/en/personal/news-and-promotions/promotions/promotion/promo-021011.html

I'm very surprised, it looks like they must be trying to buy deposits. It's worth pointing out for everyone else that this is a Preferred Account offering, that means the account holder must already have (or be prepared to invest) 3 million  with CIMB in order to be eligible for this offer.

[Pib]

2 hours ago, SCOTT FITZGERSLD said:

DO krungsri offer also USD accounts>

Sure....expect all Thai banks offer Foreign Currency Deposit  (FCD) accounts.  Just go to their website.  But keep in mind account denominated in foreign currency is not insured under the Thailand Deposit Protection Program.  Plus, a FCD earns low or no interest....and have higher minimum balances and different fees than a regular savings account. 

[macahoom]

3 minutes ago, simoh1490 said:

I'm very surprised, it looks like they must be trying to buy deposits. It's worth pointing out for everyone else that this is a Preferred Account offering, that means the account holder must already have (or be prepared to invest) 3 million  with CIMB in order to be eligible for this offer.

 

Apology accepted!

[simoh1490]

1 minute ago, macahoom said:

 

Apology accepted!

Are you a kid!

[macahoom]

1 minute ago, simoh1490 said:

Are you a kid!

Are you civilised?

[simoh1490]

1 minute ago, macahoom said:

Are you civilised?

Life's too short, welcome to my ignore list, byee.

[Naamblar2014]

16 hours ago, simoh1490 said:

EDIT TO ADD: Technically, income that is remitted to Thailand during the year it was earned, by residents, is taxable. In practice the Thai Revenue does not attempt to tax that money because it is nigh on impossible for them to distinguish between earned income and savings from overseas sources. It is possible that there is a link between this issue and the self dec certification issue for visa's that is so much in focus currently, dunno, pure speculation on my part.

Agree speculation,  but anything is possible.  An example

 

Step 1. Stop income statement from embassy.

Step 2. Force monthly pension payments to be deposited in a Thai bank monthly. Ie income coming into the country in the year earned.

Step 3. Tax that income.

[Krataiboy]

1 hour ago, Naamblar2014 said:

Agree speculation,  but anything is possible.  An example

 

Step 1. Stop income statement from embassy.

Step 2. Force monthly pension payments to be deposited in a Thai bank monthly. Ie income coming into the country in the year earned.

Step 3. Tax that income.

My understanding is that if you come from a country which doesn't have a double taxation agreement with Thailand, any money remitted to Thailand from overseas which is earned in the current tax year is taxable by the Thai tax authorities. This presumably would apply to pensions paid in the UK and remitted here on a monthly basis. 

 

 

[Blue bruce]

Stop spreading fake news

[topt]

1 hour ago, Krataiboy said:

My understanding is that if you come from a country which doesn't have a double taxation agreement with Thailand, any money remitted to Thailand from overseas which is earned in the current tax year is taxable by the Thai tax authorities. This presumably would apply to pensions paid in the UK and remitted here on a monthly basis. 

 

 

I take it you did not bother to read any of the earlier posts as this has been well covered already.........

[steve73]

36 minutes ago, topt said:

I take it you did not bother to read any of the earlier posts as this has been well covered already.........

From my understanding of all the previous posts here and other elsewhere, if there is no DTA (eg. UK) then Thai tax SHOULD BE liable on any income (incl. pensions) brought into Thailand in the year in which it is earned.

By paying it into a UK bank account, before transferring it here, it then becomes difficult to prove that it's earned within the same year as it's moved to T/L, and up 'til now the Thai tax authorities have not tried to tax it.

There is no guarantee that this situation will remain as it is in the future, if international banking co-operation becomes more transparent.  Even now anyone directly depositing their pensions, etc, into a Thai bank COULD find themselves being liable. 

[Krataiboy]

21 hours ago, topt said:

 

Agreed however potentially this is also the current case from what I understand from reading posters who talk about direct deposit of their pensions. If not coming directly but just from a bank account the thai revenue service would still not necessarily know it was not from previous accumulated savings.

Maybe not. But they could ask for proof of the source.

[simoh1490]

3 hours ago, steve73 said:

From my understanding of all the previous posts here and other elsewhere, if there is no DTA (eg. UK) then Thai tax SHOULD BE liable on any income (incl. pensions) brought into Thailand in the year in which it is earned.

By paying it into a UK bank account, before transferring it here, it then becomes difficult to prove that it's earned within the same year as it's moved to T/L, and up 'til now the Thai tax authorities have not tried to tax it.

There is no guarantee that this situation will remain as it is in the future, if international banking co-operation becomes more transparent.  Even now anyone directly depositing their pensions, etc, into a Thai bank COULD find themselves being liable. 

The UK does have a DTA with Thailand.

[Krataiboy]

4 hours ago, topt said:

I take it you did not bother to read any of the earlier posts as this has been well covered already.........

Just trying to make the situation clear. But thanks for your kind words, anyway.

[steve73]

5 minutes ago, simoh1490 said:

The UK does have a DTA with Thailand.

My mistake.. thanks...

So what are the implications of this? 

[simoh1490]

1 minute ago, steve73 said:

My mistake.. thanks...

So what are the implications of this? 

In todays world, not much, it's business as usual. Tax deducted in one country can be offset against tax paid in another country, it's an advantagous thing for most people. Thailand is not yet party to the global bank details sharing scheme but is estimated to be so within a couple of years, that may change things for some folks who have been trying to hide money offshore.

[topt]

1 hour ago, simoh1490 said:

The UK does have a DTA with Thailand.

Yes  but unfortunately does not include most pensions other than some government ones (Eg Civil Service). Does not include the State pension.