Tax on interest paid by Bangkok Bank

[lelapin]

Last year I managed to get back 5000 baht for the tax I had paid on interest at Bangkok Bank. It was a lengthy process both at the tax office and then at the nominated bank getting the cash.

They had told me at the tax office that now that I have a tax number from them, I should pass this on to Bangkok Bank and they would no longer apply tax to my interest earned.

This morning I went to Bangkok Bank and after 45 minutes, during which time I signed several forms and the girl checked three times with head office in Bangkok, my tax number was added on the computer to my bank details.

As I was about to get up from the desk the girl said to me "You know this no charging of tax only applies to your savings account. You still have to claim back from the Tax Office for tax paid on Fixed Term Accounts".

My tax on savings accounts is less than 300 baht. My taxed on fixed term accounts is over 6000 baht.

THIS IS THAILAND.

[EricTh]

That's what Bangkok Bank said to me when I registered my tax ID with them 6 months ago but lo and behold, my savings account was still taxed during december 2019 when I had my interest calculated.

 

Note: It is savings and not fixed deposit. Of course, the fixed deposit was also taxed.

 

Those Bangkok Bank officers don't know what they are doing sometimes.

 

They say one thing one day and another thing another day.

Edited January 6, 2020 by EricTh

[Matzzon]

22 minutes ago, lelapin said:

THIS IS THAILAND

Yes, you are right! You should have read the terms and conditions, for the different accounts. They are there to be read, and not only for decoration.

[Pib]

Different tax rules for different kinds of accts.  "Fixed" savings account have always had the 15% of interest tax withholding....and does not matter how much interest is earned...be it 1 baht or over 20,000 baht....and does not matter whether your are Thai or foreigner.

 

Withholding tax rule for "regular" savings accts changed in early 2019 which requires tax withholding on amounts equal to or less than 20,000 baht if a foreigner.   If Thai the tax withholding on a regular savings acct does not begin until exceeding 20,000 baht interest.   However, once a foreigner provides their Thai tax ID number to their bank they will be treated just as a Thai with no tax withholding on a regular savings acct if interest earned is 20,000 baht or less.  But as mentioned once exceeding 20,000 baht interest earned withholding tax applies for Thai or foreigner.

 

Last year I provided my Thai tax ID to both my banks for my regular savings accts...Krungsri and Bangkok Banks and both recoded my accts to be treated just as a Thai for interest/tax withholding purposes.  No tax is now being withheld on my regular savings accts for 20,000 or less interest.