Bank changed interest without any warning

[TigerandDog]

34 minutes ago, userabcd said:

Wrong, taxes are not only paid by citizens. Personal taxes can also be paid by non citizens on income source and amount and are mostly based specific tax laws, residency and domicile.

Sorry but you are WRONG & ripstanley is CORRECT. Foreigners pay 15% tax on EVERY baht of interest earned. The 20k exemption ONLY applies to Thais.

[johng]

5 minutes ago, TigerandDog said:

Foreigners pay 15% tax on EVERY baht of interest earned.

You can go to your local Tax office and get a Tax number  then go to the bank and have them update their records with said tax number  then you will also get the 20K exemption..no ned for a work permit to get a tax number..I have not bothered as the interest on the money I have in the bank is hardly earning any interest anyway !

[Susco]

5 minutes ago, TigerandDog said:

Sorry but you are WRONG & ripstanley is CORRECT. Foreigners pay 15% tax on EVERY baht of interest earned. The 20k exemption ONLY applies to Thais.

Then explain how I and several other foreign members on this forum get their taxes refunded, or at certain banks even not withheld at all.

 

There are numerous post about this over the years on this forum.

 

Could it possible be because YOU are WRONG and it DOESN'T apply only to Thais?

[Pib]

14 minutes ago, TigerandDog said:

The tax on 20k THB or more interest ONLY applies to thais. Foreigners will pay tax on any interest earned no matter the amount. However, on the upside, you can get a full refund of the tax deducted by submitting a Thai tax return.

As mentioned in earlier posts as a farang you can stop the tax withholding on interest amounts of Bt20K or less by providing your bank your Thai tax ID number.   That's what I did with my Krungsri and Bangkok Banks regular savings accts....they stopped withholding the interest.

[pineapple01]

7 minutes ago, TigerandDog said:

Sorry but you are WRONG & ripstanley is CORRECT. Foreigners pay 15% tax on EVERY baht of interest earned. The 20k exemption ONLY applies to Thais.

27 years ive been with BKB. I could claim tax back but just dont bother. Another stupid Form, that leads to another as i recall.

[LukKrueng]

18 hours ago, Bender Rodriguez said:

where is the time (8 years ago?) where some banks gave 3 percent for 36 months..

Where is the time (over 20 years ago? ) where some (or all) banks have a much higher % for any savings account (not only fixed/ locked accounts)....

Can't remember the%, but I think it was 6-10% back then

[JWRC]

It's quite simple. if you are not happy with your bank, change to a different one.

[Pib]

The govt started withholding tax on "regular" savings accts in mid 2019 with a tax policy change. 

 

If Thai the withholding does not start until exceeding Bt20K interest earned. But for farangs it's for any amount of interest earned "unless you provide the bank your Thai tax ID number." 

 

And even if you provide the tax ID number to stop the withholding for Bt20K or less interest earned once you exceed Bt20K interest earned the withholding will begin just like for a Thai.

 

Your bank will have your acct(s) "coded in a certain way" as to whether your are Thai or farang and whether you have your Thai tax ID number on file with them. 

 

See my below June/July 2019 posts which talks the issue in detail...especially the post talking my discussion with Krungsri Bank.   I got the tax withholding stopped by providing my Thai tax ID number.  And then did the same thing at Bangkok Bank to stop the withholding on my regular savings account.  No tax withheld on my regular savings accts with those banks since mid 2019 after I provided them my tax ID number. 

 

Does not matter if your are on a retirement visa/extension of stay or have a work permit...or whatever....you can get a Thai tax ID number to stop the withholding and get a full refund of the withholding.

 

 

 

[userabcd]

51 minutes ago, TigerandDog said:

Sorry but you are WRONG & ripstanley is CORRECT. Foreigners pay 15% tax on EVERY baht of interest earned. The 20k exemption ONLY applies to Thais.

The exemption does not only apply to Thais, it is available to alien residents within the definition of a resident for tax purposes.

 

The banks automatically deduct witholding taxes for interest. I am paying tax and my Thai wife is paying tax on interest at source.

 

If your annual interest earned is below the 20000 baht threshold and according to the tax rules you could claim the deducted tax back from the Thai revenue authorities.

 

Or the foreigner resident or Thai resident/domicile could visit the bank to discuss and provide the bank with a tax number for them to pay the interest at source in full. The bank would then be reporting your interest earnings to the Thai revenue authorities.

[Max69xl]

18 hours ago, Bender Rodriguez said:

we are not in kansas anymore...

any suggestions in investments, but that is like playing casino

 

if you have high connections, you might get inside trading information to make you filthy rich

 

the sheeple hardly ever win, or they think they do and there is the next stock market crash

Back home my banks interest rate for a common savings account has been 0% for years. Some banks want to charge people to be able to save money. Here you normally get 0.5% and more if you have your money in a Fixed Deposit Account. 

[natway09]

If it is not on a fixed term your interest rate will change with The Bank of Thailands main rate.

A fixed term will be honoured by the bank until the end of the term

[simon43]

3 hours ago, kenk24 said:

Simon, the interest rate is only a part of the equation... if inflation in Laos is 10% then you are losing purchasing power... also to be figured in can be exchange rates.. 

I'm getting more LAK to the USD that I bring into the country each month.  My house rent has just been reduced by 30% per month.  I really don't care if the $5.52 (50,000 kip) that I spend each day on beer and fresh/healthy food goes up by 10%... ????

[Seeall]

 

children running a piggybank.. what do you expect

[khm2412]

I am on an O-A extension of stay.
1. If I obtain a TIN to claim back withholding tax, are there any downsides? 2. Will I have to file an annual tax return in Thailand?

3. Will the tax people start looking at my foreign income?

4. Will I be liable for double taxation?

5. What documents are required at the tax office? (Passport, Yellow Book?).

Many thanks for all replies.

[Pib]

2 hours ago, khm2412 said:

I am on an O-A extension of stay.
1. If I obtain a TIN to claim back withholding tax, are there any downsides? 2. Will I have to file an annual tax return in Thailand?

3. Will the tax people start looking at my foreign income?

4. Will I be liable for double taxation?

5. What documents are required at the tax office? (Passport, Yellow Book?).

Many thanks for all replies.

1. No.

2. No

3. No

4. No

5. Passport.  If you have a Yellow Book you can show it also.

 

[lelapin]

6 hours ago, TigerandDog said:

Sorry but you are WRONG & ripstanley is CORRECT. Foreigners pay 15% tax on EVERY baht of interest earned. The 20k exemption ONLY applies to Thais.

Really? Then I wonder why the tax office refunded me nearly 10,000 baht last year and 8000 baht baht this year. Must have been a mistake as you obviously know the rules far better than my local tax office in Pattaya.

[Trillian]

7 hours ago, TigerandDog said:

Sorry but you are WRONG & ripstanley is CORRECT. Foreigners pay 15% tax on EVERY baht of interest earned. The 20k exemption ONLY applies to Thais.

Is the wrong answer, Thai banks and the Thai Revenue Dept treat locals and foreigners exactly the same.

[YT3k72Em]

Yes, the banks already have Thai citizens tax numbers because it's the same as their ID card number.

The banks don't have foreigners Tax numbers unless you go and give it to them. Hence you default to having tax deducted and Thais don't.

[Trillian]

11 minutes ago, YT3k72Em said:

Yes, the banks already have Thai citizens tax numbers because it's the same as their ID card number.

The banks don't have foreigners Tax numbers unless you go and give it to them. Hence you default to having tax deducted and Thais don't.

That is not correct. A tax number in Thailand is issued by The Revenue and used to be 10 digits, it was only in fairly recent years that it was increased to 13 digits and is not the same as the citizens ID number.

 

http://www.dlabonline.com/pdf/AccpacTip/RD_TaxIDno_eng.pdf

Edited June 18, 2020 by Trillian

[Pib]

To the best of my knowledge the typical Thai will use their Thai ID card 13 digit number which is issued by the Ministry of Interior...district offices that issue ID cards are part of the Ministry of Interior.  See bullet #1 below.  Then there are other rules for other groups.  Like a foreigner will be issued a 13 digit tax ID number...this is issued by the Revenue Dept....mine is 13 digits...starts with 099....completely different from my passport or Yellow Book numbers. 

 

https://msnagroup.com/new-thai-tax-id-number/

Quote

 

New Thai Tax ID Number

• 0 comments
•  Thailand Taxation
• February 8, 2012

The Revenue Department of Thailand has recently announced a new regulation whereby tax payers will be required to use a new 13-digit Tax ID, instead of the current 10-digit numbers. Guidelines given are as follows:

1. Personal income tax payers are to use the Identification Number issued by the Ministry of Interior as their Tax ID number.
2. Juristic persons incorporated or licensed by the Ministry of Commerce are to use the registration number issued by the Ministry of Commerce as their Tax ID number.
3. Other tax payers are to use a 13-digit Tax ID number issued by the Revenue Department.

Use of the 13-digit Tax ID numbers is effective from 1 February 2012, and is to be used for tax return filing, tax payment, withholding deduction and remittance, and in all other contact with the Revenue Department and tax documentation. However, withholding tax certificates, tax invoices, receipts and invoices which have already been prepared using a 10-digit Tax ID number can continue to be used until 31 January 2013.

 

 

 

Edited June 18, 2020 by Pib

[YT3k72Em]

1 hour ago, Trillian said:

That is not correct. A tax number in Thailand is issued by The Revenue and used to be 10 digits, it was only in fairly recent years that it was increased to 13 digits and is not the same as the citizens ID number.

 

http://www.dlabonline.com/pdf/AccpacTip/RD_TaxIDno_eng.pdf

 

You didn't read the document you attached? it says for Individual "Use the 13-digit identification number to the tax ID number."

ie. Thai individuals DO use their 13 digit ID number as their tax ID number.

 

[ThaiPauly]

SCB have just reduced their "savings" account rate from 0.5% to 0.25% and their fixed term deposit accounts from 1.5% to 0.5%

Hefty reductions, I will have to look at what else is available at other banks

[Trillian]

1 hour ago, YT3k72Em said:

 

You didn't read the document you attached? it says for Individual "Use the 13-digit identification number to the tax ID number."

ie. Thai individuals DO use their 13 digit ID number as their tax ID number.

 

Yes I'm wrong, apologies.

[YT3k72Em]

No worries. Tax is never simple.... especially in Thailand!

[Bender Rodriguez]

nah... 20k interest is peanuts ... what about 200K interest per year or more ?  used to be 300K (at 3.5 percent, many moons ago)