Authorities backtrack on move to tax interest from bank deposits

 

 

The Revenue Department has withdrawn a much-criticized demand for bank depositors to provide written consent to allow their banks to deduct tax on interest earned on deposits.

 

Revenue Department spokesman Mr. Pensai Suraswadi said today that the department would issue a new announcement this week to exempt bank depositors, who have less than four million baht deposited in their accounts, from providing the written consent.

 

However, he said that depositors who earn more than 20,000 baht in interest per year from deposits exceeding four million baht will still be subject to 15% tax on the interest.

 

Full story: https://www.thaipbsworld.com/authorities-backtrack-on-move-to-tax-interest-from-bank-deposits/

 

-- © Copyright Thai PBS 2019-04-24

Aren't things lovely ? Yesterday we will, today we won't, tomorrow will be the surprise !

27 minutes ago, observer90210 said:

Aren't things lovely ? Yesterday we will, today we won't, tomorrow will be the surprise !

 

I think it's kind of cute that they ask for the account holders' permission before they have the bank send in the taxes.

 

First, they force you to keep your money in the bank. 

Then any interest you accrue,  they want to tax it.  Only gets better and better.

2 hours ago, observer90210 said:

Aren't things lovely ? Yesterday we will, today we won't, tomorrow will be the surprise !

They should  work for irrigration

3,000 baht worth of tax for 20,000 baht earned through 4,000,000 baht in the bank is a drop in the bucket. what rubs people the wrong way is the RD's "demand".

I am already being taxed for interest earned of 20k or more per year. Whats changed? 

Edited April 24, 20197 yr by inThailand

3 hours ago, observer90210 said:

Aren't things lovely ? Yesterday we will, today we won't, tomorrow will be the surprise !

Well with an extremely poor level of competency, unable to fully think a policy through before implementation typifies the Junta. Remember no riding in pick-ups,  limiting public transport to 80 KPH, banning double decker buses ?and so it goes on.  They must all share breakfasts together of muesli and verbal diarrhea.

Agree with Geoff's post above.  There does not appear to be a facility for thinking forward in Thailand.  Rules/projects/ideas are announced without any plan/forethought.  It comes as a great shock when a snag appears so an immediate backtrack or cancellation takes place.  Any expenditure is written off.

How about sending the banks a letter telling them to pay decent interest rates on loans, so that the customer and the revenue service earn some coin.

What is the OP talking about? I get taxed on the interest on the 800,000 baht on deposit for the retirement extension. No-one has ever asked me whether I agree.

As usual not being thought through and especially now you come to mention it all the very wealthy who will get round anything one way or another. Why do they bother you would think they would have better things to do, perhaps a trip to the temple might do the trick, see what number pops out and carry out the instructions.

2 hours ago, irwinfc said:

3,000 baht worth of tax for 20,000 baht earned through 4,000,000 baht in the bank is a drop in the bucket. what rubs people the wrong way is the RD's "demand".

I thought the first 20,000 baht would be tax free so you really need to earn 40,000 bat in interest to pay a 3,000 tax, but I have been wrong before.

2 hours ago, inThailand said:

I am already being taxed for interest earned of 20k or more per year. Whats changed? 

 

2 hours ago, Lacessit said:

What is the OP talking about? I get taxed on the interest on the 800,000 baht on deposit for the retirement extension. No-one has ever asked me whether I agree.

Most if not all fixed deposits accrue tax on any interest paid even below 20k.

 

Some savings accounts don't withhold any tax when they pay you interest. One issue has been where the banks get you to close and reopen an account if you approach 20k so you pay no tax.

 

There have been a couple of recent threads on this.

2 hours ago, Lacessit said:

What is the OP talking about? I get taxed on the interest on the 800,000 baht on deposit for the retirement extension. No-one has ever asked me whether I agree.

I'm being taxed for earning interest on my 800k deposit!

4 minutes ago, Randy99 said:

I'm being taxed for earning interest on my 800k deposit!

See my post above

4 hours ago, inThailand said:

I am already being taxed for interest earned of 20k or more per year. Whats changed? 

True its always been taxed at source

3 hours ago, Lacessit said:

What is the OP talking about? I get taxed on the interest on the 800,000 baht on deposit for the retirement extension. No-one has ever asked me whether I agree.

It's a hard one to work out, my bank pays (minimal) interest on my account every 6 months. In the last 3 years I've been taxed once, this from 6 different interest payments? I did ask the bank, purely out of curiosity, and got the standard mi roo response.

is it possible that they bothered some rich thai with a billion (or more) on his bank account, giving him 20-30 million baht of interest per year for doing nothing , does not want to pay the 15 percent TAX ?

On 4/24/2019 at 6:29 AM, Longcut said:

First, they force you to keep your money in the bank. 

Then any interest you accrue,  they want to tax it.  Only gets better and better.

Don't panic Mr Mannering.

 

Actually they only want to tax the interest you get, provided that the interest exceeds 20,000 baht per year.

 

If you don't get that much then it does not apply to you.