Tax on Interest Rates

[Beggar]

If you have an interest income of more than 20.000 Baht a year you will have to pay taxes (the bank will deduct this automatically). Before this was done on an account number basis. If I understood this correctly all accounts at a bank are now seen together - at least this was my experience. 

 

Is this also done if you have accounts at different branches of the same bank? Is this also done with accounts at different banks? What is your experience? 

[Kwasaki]

Don't know about any 20.000 Baht a year interest taxing.

Money I keep for extensions in Bkk bank a/c is for interest and starts on 3 monthly terms an ATM card is not issued with it just a Orange bank book.

I think we can do longer terms but never bother as sometimes we dig into it.

When interest is calculated it is taxed and I am told I can get it back but don't bother, in 2017 it was 750 baht 2018 110 baht.

[userabcd]

It is all interest earned by an individual tax payer.

Interest earned on multiple accounts (from different banks) and over 20000 baht is subject to income tax. 

Edited May 29, 2019 by userabcd

[Beggar]

20 minutes ago, userabcd said:

It is all interest earned by an individual tax payer.

Interest earned on multiple accounts (from different banks) and over 20000 baht is subject to income tax. 

I know the law. But I want to know what is really done. This is why I asked for your experience. 

[userabcd]

55 minutes ago, Beggar said:

I know the law. But I want to know what is really done. This is why I asked for your experience. 

 

55 minutes ago, Beggar said:

 

Sorry, no experience.

Edited May 29, 2019 by userabcd

[topt]

3 hours ago, Beggar said:

I know the law. But I want to know what is really done. This is why I asked for your experience. 

There is unlikely to be any (experience - too soon).

The only action would be that an individual should declare on their tax return as there is no way the banks can administer this apart from within their own reporting structure. You suggested that is already happening to you?

As far as I know most fixed accounts already have the tax withheld as @Kwasaki mentions above, irrespective of the amount of interest.  

 

[Beggar]

1 hour ago, topt said:

You suggested that is already happening to you?

As far as I know most fixed accounts already have the tax withheld as @Kwasaki mentions above, irrespective of the amount of interest.  

 

Yes - at my Krungsri branch they take now all accounts that I have there and look if I am over 20.000 - at least on a branch level. And then I have to pay taxes. Before this happened only on a book/account level. But this was changed by the government because this was an often used loophole to avoid taxation. They forgot an account that I have at a different Krungsri branch. But this account was opened much earlier with an old passport and an old different address. But was it only because of this? 

 

This with fixed deposits and withholding taxes immediately is my experience too. But I don't have such accounts anymore exactly because of this. If you look at the interest rate reduced by the tax they are often not a good option anymore. 

[topt]

1 minute ago, Beggar said:

If you look at the interest rate reduced by the tax they are often not a good option anymore.

Unless you reclaim it.

[KittenKong]

7 hours ago, Kwasaki said:

Money I keep for extensions in Bkk bank a/c .................

When interest is calculated it is taxed and I am told I can get it back but don't bother, in 2017 it was 750 baht 2018 110 baht.

Bangkok Bank pay rubbish interest rates. Beats my why anyone bothers with them.

I got 6,000+B refunded in 2017. And this year I got 3,000+B.

[Kwasaki]

18 minutes ago, KittenKong said:

Bangkok Bank pay rubbish interest rates. Beats my why anyone bothers with them.

I got 6,000+B refunded in 2017. And this year I got 3,000+B.

OK Mr HISO. ????

[Beggar]

3 hours ago, topt said:

Unless you reclaim it.

By law I can't reclaim it - I am here pretty much every day of the year. But I know people who do it successfully despite of this.

[topt]

8 hours ago, Beggar said:

By law I can't reclaim it

Sorry I do not understand - what law say's you cannot reclaim?

[Beggar]

36 minutes ago, topt said:

Sorry I do not understand - what law say's you cannot reclaim?

Because you have to pay taxes on income you got here in Thailand especially if you stay here more than 180 days a year. In addition I don't have an other address outside of Thailand. I know that people got the tax back but I don't know why if I am honest. Based on what law? 

[topt]

1 minute ago, Beggar said:

Because you have to pay taxes on income you got here in Thailand especially if you stay here more than 180 days a year.

If you earn money from working in Thailand and being paid in Thailand then of course. However if doing something online for customers outside Thailand then possibly a grey area but currently no issue.

6 minutes ago, Beggar said:

In addition I don't have an other address outside of Thailand

Irrelevant

6 minutes ago, Beggar said:

I know that people got the tax back but I don't know why if I am honest. Based on what law? 

The Thai Revenue rules which state that you get a tax free allowance. Simplistically if you only have interest below that figure (150,000 baht) you can claim back any tax paid.

http://www.rd.go.th/publish/6045.0.html

[Beggar]

14 minutes ago, topt said:

 

The Thai Revenue rules which state that you get a tax free allowance. Simplistically if you only have interest below that figure (150,000 baht) you can claim back any tax paid.

http://www.rd.go.th/publish/6045.0.html

This would be very nice. Do you know until when I can do this for the last year and what documents I have to take with me?

[topt]

4 minutes ago, Beggar said:

This would be very nice. Do you know until when I can do this for the last year and what documents I have to take with me?

You need to apply for a Thai TIN - tax number. Not sure if you can get one in advance as tax returns/claims must be made between Jan 1 and Mar 31st each year. I think you can claim back for 3 years but pay 100 or 200 baht for late filing.

 

I would suggest you go visit your local revenue office (with a Thai speaker) and see what they want. Plenty of threads on here in the Banking section about it but, as with many things in Thailand, the experience at your local office may vary.

[mahjongguy]

The banks withhold 15% of the interest earned on all fixed accounts and on savings accounts if the total earned exceeds 20k baht. 

 

That is not tax. It is withholding. If and when you make a tax filing, that will determine whether or not the Revenue Department returns all or a portion of the withholding. 

 

Since anyone who has ever had a salaried job in their life has had estimated tax withheld from their paycheck, I can't comprehend why this concept is so poorly understood.

[Beggar]

6 minutes ago, topt said:

You need to apply for a Thai TIN - tax number. Not sure if you can get one in advance as tax returns/claims must be made between Jan 1 and Mar 31st each year. I think you can claim back for 3 years but pay 100 or 200 baht for late filing.

 

I would suggest you go visit your local revenue office (with a Thai speaker) and see what they want. Plenty of threads on here in the Banking section about it but, as with many things in Thailand, the experience at your local office may vary.

3 years back?! No problem to pay for late filing if this is possible ???? Thank you for the information. 

[Beggar]

1 minute ago, mahjongguy said:

The banks withhold 15% of the interest earned on all fixed accounts and on savings accounts if the total earned exceeds 20k baht. 

 

That is not tax. It is withholding. If and when you make a tax filing, that will determine whether or not the Revenue Department returns all or a portion of the withholding. 

 

Since anyone who has ever had a salaried job in their life has had estimated tax withheld from their paycheck, I can't comprehend why this concept is so poorly understood.

I think I understand it now and will try to get my money back.