EoS using THB800k

[samtam]

I use the THB800k in the bank method. I just noticed that my THB800k plus balance earns its interest per month, but effective May 2019 there is a new 15% withholding tax. My bank (Krungsri) said this is new, and applies to foreigners only. Whereas before, if you earned less than THB20,000 in interest per annum you paid no tax. Another little money spinner for the banks, courtesy of the new money rules for EoS.

[ubonjoe]

Banking topic not directly related to visas or extensions. Moved to here.

[scubascuba3]

Yes reported in the Krungsi MTD thread

[allane]

x

Edited June 15, 2019 by allane
x

[sfokevin]

You can apply and get a refund of the withholding 

[KhunBENQ]

17 hours ago, samtam said:

but effective May 2019 there is a new 15% withholding tax. My bank (Krungsri) said this is new, and applies to foreigners only. Whereas before, if you earned less than THB20,000 in interest per annum you paid no tax.

Much wrong.

The 15% withholding tax is not new!

Always paid tax for much less than 20000 Baht earnings.

Refunded at the revenue office (2012, 2013 or so).

 

I am not too familiar with the new (planned?) rules.

As far as I understand for less then 20000 tax is not deducted as a withhold.

Are new rules in effect already? Anyone knows?

My last interest payment was in April.

 

Not new and withholding for small amounts.

 

Except from Bangkok Bank:

Quote

12 Apr 2019     Withholding Tax    598.11         AUTO
12 Apr 2019     Interest Credit    3,987.37     AUTO

 

Edited June 15, 2019 by KhunBENQ

[KhunBENQ]

Foreigners only?

Could mean that the new easier rule (no withholding for less than 20000) does not apply?

You would still have to take the effort at the revenue office?

 

But just speculation.

[Pib]

See below Krungsri MTD thread for info/how to stop the withholding if earning less than Bt20K interest per year.  Apparently Krungsri made a policy change regarding interest withholding on the MTD without informing customers in advance.

 

[KhunBENQ]

52 minutes ago, Pib said:

See below Krungsri MTD thread for info/how to stop the withholding if earning less than Bt20K interest per year.

How does this apply to other banks/accounts?

My example from a fixed deposit account at Bangkok Bank.

[Pib]

37 minutes ago, KhunBENQ said:

How does this apply to other banks/accounts?

My example from a fixed deposit account at Bangkok Bank.

I doesn't.  "Fixed savings" accounts require the 15% tax withholding whether Thai or farang and regardless of amount of interest earned...even when far below Bt20K/yr interest earned.  On a fixed fixed account even if only earning say Bt100 a 15% tax withholding of Bt15 would apply.   Separate tax withholding regulations for fixed savings accounts as compared to regular savings accounts.  

 

And for "regular savings" account...you know the kind that come with a debit card and only pay around 0.5% interest, well, if what Bangkok Bank told me when I went to visit them is the 15% withholding tax would not apply for Thai or farang as long as Bt20K or less interest is earned per year....same as before.  That's what a Bangkok Bank rep told me face-to-face after telling her my Krungsri MTD story.  After hearing my story the Bangkok Bank rep felt that was purely a Krungsri policy change for that particular type of account.  The Bangkok Bank rep had no interest in my Thai tax ID number....said no need to provide.  I talked about this also in the link I posted above....see the link for more info.

 

Since Bangkok Bank (and most Thai banks) pays interest twice a year in mid-late Jun and Dec and since I earn only around Bt1,000 interest/year in my Bangkok Bank accounts then if no tax withholding occur for the soon to occur June interest payment then what the Bangkok Bank rep told me as correct; if interest is withheld then I will be visiting them again to discuss why the rep gave me incorrect information...and the Thai wife was with me on the first visit so I have a witness...there was no Thai-English miscommunication that can easily happen....plus the Bangkok Bank rep spoke really good English as this as the branch in the HQ Bangkok Bank building on Silom Rd in Bangkok. 

 

The Krungsri MTD accounts is a crossbreed between a regular and fixed account the best I can figure....that's why I've referred to it as a hybrid fixed accounts in some threads/posts but that just my terminology for it.  I also think it was one of the accounts that caught the Thai Revenue Dept's eye last year when apparently certain bank branches were recommending to customers they come in and close their account just before reaching Bt20K interest/year and immediately open a new account and just roll over the funds from the old to new account....somehow that reset the "interest counting" clock.  That drove the Thai Revenue Dept to relook tax withholding policy.

 

And the best I can figure Krungsri made the tax withholding policy change for the MTD account driven by revised Thai Revenue Dept regulations.    I also saw a post in a related thread where a person with a kinda similar Bangkok Bank account (i.e., roughly similar to a Krungsri MTD account) which pays 1.6% interest was implementing the 15% tax withholding beginning 1 July.  I bet that was driven by the Thai Revenue Dept also due to the type of account it was.  The poster was not talking a fixed account....just one of those crossbreed type accounts which Bangkok Bank has.

 

But come the end of June when interest is paid by Krungsri Bank and Bangkok Bank I'll know for sure if what bank reps told me....and how Krungsri updated my account with my Thai tax ID....was correct info.

 

Edited June 15, 2019 by Pib

[KhunBENQ]

OK, so just ignore my posts