Thai Banks withdrawing tax

[lala12]

A few weeks ago, there was a discussion thread about the new Tax Notification of 3 May 2019 which states that Thai banks are required to withhold 15% tax on interest unless the account holder submits her/his Tax ID to the bank.  I did just that and visited the two banks where I have two types of account: Fixed Rate and Saving accounts.  Kiatnakin was a complete fiasco; within five minutes of being at the Branch I had five banks employees talking to each other about this and looking completely lost.  They eventually got me to talk to someone at their HQ and her response was I should go to the Revenue Office myself and claim back whatever tax has been withheld.  She wouldn't accept that it's the bank's responsibility to do this and not withhold tax in the future.  The experience at SCB was different but just as frustrating!  SCB would only stop withholding tax on my savings account (which is really a current account with an interest rate of 0.25% or something like that.  

 

As you can see, there seems to be no consensus on how this new law is being understood and implemented.  Anyone has some workable suggestions of how to deal with this?  Thanks

[lala12]

Title should read "withholding Tax" not Withdrawing....

[4MyEgo]

They can have the spare change from the 0.25% that they give me from the limited funds that I keep with them.

[JimGant]

3 hours ago, lala12 said:

Anyone has some workable suggestions of how to deal with this?  Thanks

Are you a Yank? If so, just take the Thai withholding tax as a credit on your US Tax return. Yes, the IRS rules state that, if you can get a tax refund from the Thais, then you shouldn't be allowed a credit. But, there are enough reports here on TV to support the difficulty in getting such refunds; the IRS doesn't require you to spend your whole week fighting Thai bureaucracy/stupidity. Plus, the chance of an audit in today's IRS environment is nil; but you've a great excuse if somehow you do get one of those letter audits -- plus you're not evading taxes -- you're paying the full amount, except now Thailand gets 15% of the tax receipts, and the US forfeits 15% in credits. And if the taxes are less than $600 (filing married), no additional tax forms need be submitted -- just a couple of extra finger pokes with Turbotax, etc.

 

If you're not a Yank, I guess you're on Google now, trying to figure out what's Turbotax.....????

[couchpotato]

"""As you can see, there seems to be no consensus on how this new law is being understood and implemented.  Anyone has some workable suggestions of how to deal with this?  Thanks"""

 

Actually you are wrong in your assumptions and therefore I will set the record straight for you.  ie: there is a consensus.

1) Savings accounts: With a proper 13 digit tax ID CARD (note card-not a piece of paper), then this number can be entered into each Banks system and tax is not deducted from earned interest. I have had my system details updated in the past few months at my following banks--Krungsri, Bangkok Bank, Kasikorn and TMB.

(so this is the law now, and if a Bank won't do it for you, then you will need to follow up with management or just forget it). But one caveat is that every Bank must issue you with a tax receipt (if you request it, and this can be taken to the tax office for a refund--so remember that).

 

1) Deposit Accounts: The above does not apply!

ALL deposit accounts are subject to tax. Up to 20,000 baht of interest can be refunded or taken off your yearly tax return. So unlike Savings accts, there is no way to have tax deducted on a Fixed deposit.

 

Hope this helps you...cheers.

[asiaexpat]

Just a note: I tried to stop withholding on my BBL accounts but the clerks had no idea how to input my ID number (which is also my Tax ID number.) I am not concerned since refunding is simple once one has done it through the Revenue Office once.

[dvg]

8 hours ago, asiaexpat said:

Just a note: I tried to stop withholding on my BBL accounts but the clerks had no idea how to input my ID number (which is also my Tax ID number.) I am not concerned since refunding is simple once one has done it through the Revenue Office once.

Can you please tell me where/how I can get my Tax ID number?

[peterbkk2]

You need to physically go to your local Thai Revenue Office serving the area in which you reside. You need to take your passport and proof of address. The passport is obviously to identify you. The proof of address is to prove that you are entitled to apply at that particular Revenue office. The whole process should take about 20 minutes.

Edited November 23, 2019 by peterbkk2