bank interest

[wazzadg44]

Have fixed term deposit that recently matured and I received a receipt for tax paid because of the high interest amount. It is only around 4,000 baht. I went to the local revenue office to claim back the tax paid and was told that tax paid this year is not claimable until next year-ie: tax paid in May 2019 is not claimable until May 2020. So the government has my money,earning them interest for a year while I miss out on the interest that I could have earned. Is this the way it works? Having to wait 12 months to get back your money? First time for me so not sure of how it works. Any one with knowledge of this can comment.

[Kwasaki]

3 minutes ago, wazzadg44 said:

It is only around 4,000 baht.

On what you lose in interest on 4000 bht for 1 year would it be such great loss about 60 baht I guess.

[wazzadg44]

You are right but it's not the loss of interest so much as having to wait 12 months to get my money back. Thanks for the comment.

[sfokevin]

Did you understand them to mean exactly one year wait or did they mean next January 1st you could file claim?

[mahjongguy]

It is withholding, in case by the end of the year your income crosses over the threshold of actually owing tax. How can that be determined until the year has ended? 

[JAS21]

1 hour ago, mahjongguy said:

It is withholding, in case by the end of the year your income crosses over the threshold of actually owing tax. How can that be determined until the year has ended? 

I don't know where you come from but in most countries you complete a tax form at the end of the financial year ... it is the same here ... you should do it between 1st January and 31st of March ... then they will calculate payment required or rebate. 

 

If your only Thailand income is saving interest ... on which there is normally withholding tax ...you will get that back ...

Edited June 10, 2019 by JAS21

[mahjongguy]

Since you quoted me, then confirmed what I said, I have to think I was misunderstood.

[wazzadg44]

1 hour ago, mahjongguy said:

It is withholding, in case by the end of the year your income crosses over the threshold of actually owing tax. How can that be determined until the year has ended? 

My first year of income has ended (term deposit-2018-2019 )-tax paid-but now due refund. I don' have any other Thai income only a pension from my home country. Why then should I wait another year for refund?

[mahjongguy]

You don't *yet* have any other income for 2019, and there's no place on the form for you to promise not to earn more. 

[wazzadg44]

7 minutes ago, mahjongguy said:

You don't *yet* have any other income for 2019, and there's no place on the form for you to promise not to earn more. 

I will NOT have any more taxable income in 2019 or 2020 or any other year. And what form are you referring to?The receipt  form I got from the bank? I have no other form from any one.

[JAS21]

1 hour ago, mahjongguy said:

Since you quoted me, then confirmed what I said, I have to think I was misunderstood.

Twas an error quoting you ...on my phone no glasses ...sorry

[mahjongguy]

39 minutes ago, wazzadg44 said:

And what form are you referring to?

I meant the Thai Revenue Department form on which you file (in early 2020) your 2019 income and thereby request a refund of any withholding.

 

You are quite certain that you will have no more 2019 income but the RD has no way of knowing that until the year is over.

 

If your problem is that you don't intend to be here during filing season, there may be another option. If, for example, you are American, you must declare the entire interest amount as income. You are supposed to then recover the amount withheld from the Thai RD but if that is not possible then you are allowed to declare that withholding as Foreign Tax Paid on your 1040. Other nationalities may have similar regulations.

[mahjongguy]

29 minutes ago, JAS21 said:

Twas an error quoting you ...on my phone no glasses ...sorry

Oh, I can sure relate to that.  ????  Everything gets fuzzier, day by day.

[Pib]

You file for the tax refund during Jan-Mar as that is when Thai tax returns are filed each year.   Kinda like in the US where tax returns are filed each year between 1 Jan and 15 Apr.  So, come Jan go to your bank and get the letter which states how much tax was withheld and then go to your local revenue office to file for a refund....do it in Jan if desired.  You can even file after the end of March but there will be a Bt200 late filing penalty.

 

Summary: any taxes withheld from 1 Jan - 31 Dec 2019 a refund request can be filed during standard window for tax return filing in Jan-Mar 2020....if filing after that window then a Bt200 penalty will apply.

 

Edit: now I will say if you can prove you are leaving Thailand before Jan 2020 and not coming back I think there is a option to file early....check with your local revenue office.

Edited June 10, 2019 by Pib

[wazzadg44]

Thank you-at last it all makes sense with your explanation. I was not aware of the tax year in Thailand. I already have the letter from the bank so will now wait till January to file for refund. Once again thanks. Very clear now.