Tax on Thai Savings Account

[alphason]

I filled in the form some time ago to stop tax being deducted from my monthly interest payments with Krungsri Bank and they stopped taking the tax as expected, but just noticed they have now started collecting it again over last few months. 

Do you have to submit a new form every year? I thought it was well over a year ago when I did it for the first time, but don't exactly remember. -- thanks.

[Proboscis]

I am not sure whether you expect members of the forum to be either experts in International Tax, Thai taxation with respect to savings accounts or expert on the way your bank applies rules in relation to the same. 

[mwbrown]

I never tried to ask Bangkok Bank to not take tax on my savings account with my 800,00 baht.

 

My process is: Interest is credited, then an immediate 10% tax withheld.  I file a tax return at the end of the tax year and get it all back because it's under the minimum taxation level.  

[Oldie]

You have to give them your Thai tax id. I had to do this 3 times at Krungsri until it worked and I demanded that they refund me the wrongly deducted tax what they did. 

[DaftToPutRealName]

26 minutes ago, Proboscis said:

I am not sure whether you expect members of the forum to be either experts in International Tax, Thai taxation with respect to savings accounts or expert on the way your bank applies rules in relation to the same. 

Of course, why would a forum for expats living in Thailand have any knowledge or opinion whatsoever on taxes and bank accounts? We only know alcohol brands and the best go-go bars.

[Sheryl]

I was not aware there was such a form. What is it called? 

 

Currently I claim the tax back each year but it is a huge hassle so I would love to avoid it if this is indeed possible to do.

[Oldie]

6 minutes ago, Sheryl said:

I was not aware there was such a form. What is it called? 

 

Currently I claim the tax back each year but it is a huge hassle so I would love to avoid it if this is indeed possible to do.

You need to go with your tax ID to the bank and show it to them - this piece of paper you got at the revenue department. In my cases they always filled out at all banks the forms themselves. 

 

Edited September 15, 2020 by Oldie

[GregTN]

3 minutes ago, Sheryl said:

I was not aware there was such a form. What is it called? 

 

Currently I claim the tax back each year but it is a huge hassle so I would love to avoid it if this is indeed possible to do.

On regular savings you can have the withholding deferred with a Thai tax number and completed form at the bank but that dose not apply if it is a fixed savings account.

[Guderian]

I've never heard of this form, either. I used to claim the tax back but then interest rates dropped so far it was hardly worth it and the final nail in the coffin was when I was called into see the tax inspector who wanted to know the details of my pension income and why I wasn't declaring it. That was before I was even 60, so I just said that my state pension doesn't start until I'm 66 and she accepted that. I decided then to back off and stop claiming back the 5K Baht a year or whatever pittance it was, and I haven't heard a dickie bird from them since. Sometimes, trying to squeeze every single Baht out of your situation can lead to much bigger problems that you hadn't anticipated.

[Bender Rodriguez]

if you get more than xxxxx baht in interest per year, it is lost, right ... I mean no way to reclaim ?

 

what about Thai children... can they reclaim tax ? lol (100.000 baht interest per year for the child)

[flexomike]

1 hour ago, Bender Rodriguez said:

if you get more than xxxxx baht in interest per year, it is lost, right ... I mean no way to reclaim ?

 

what about Thai children... can they reclaim tax ? lol (100.000 baht interest per year for the child)

Damn they have ten million baht in the bank, so they get 100,000 in interest, can I be one of your kids - 555

[TigerandDog]

2 hours ago, mwbrown said:

I never tried to ask Bangkok Bank to not take tax on my savings account with my 800,00 baht.

 

My process is: Interest is credited, then an immediate 10% tax withheld.  I file a tax return at the end of the tax year and get it all back because it's under the minimum taxation level.  

the withholding tax rate on interest earned is actually 15%.

[Sheryl]

3 hours ago, GregTN said:

On regular savings you can have the withholding deferred with a Thai tax number and completed form at the bank but that dose not apply if it is a fixed savings account.

 I see, thanks for that. I'll keep it in mind though was mainly thinking of my fixed account. If I'm going to have to file for refund of that regardless, I may as well do for both accounts.

 

Was mainly wanting to avoid the  intrusive questions and repeat calls from Provincial  tax authority as my experience was similar to Guderian. Made worse by her having never heard of a foreigner living here on basis of retirement and was convinced I must work here.

[CMBob]

27 minutes ago, Sheryl said:

 I see, thanks for that. I'll keep it in mind though was mainly thinking of my fixed account. If I'm going to have to file for refund of that regardless, I may as well do for both accounts.

 

Was mainly wanting to avoid the  intrusive questions and repeat calls from Provincial  tax authority as my experience was similar to Guderian. Made worse by her having never heard of a foreigner living here on basis of retirement and was convinced I must work here.

As the poster stated, I don't believe that the routine (filling out a form to have them stop withholding the 15% withholding tax) applies to any fixed term account.  I tried that with my "visa" account (at SCB where I keep the 800k in a fixed term account) and they told me the no-withholding routine doesn't apply to such an account.  It does apply to a regular savings account but, if your interest is below a certain amount in that account, they don't do withholding on the savings account anyway. 

 

I'm not sure why you get contacts from the tax authorities, they've never contacted me.  To get back the 15% withheld, I just go to the local revenue office and they file the income tax return for me (and I only do that every couple of years.....you can claim back the withholding tax for the prior three years and, with the interest rate so low these days, it's not worth the minimal hassle to do that every single year).  Getting the Kbank voucher deal (instead of a mailed check or direct deposit to your bank account like they did in past years) adds another minimal layer of hassle but, then again, it's only another 30 minutes or so, only once every couple of years, and I normally have nothing else important to do). 

[Max69xl]

5 hours ago, mwbrown said:

I never tried to ask Bangkok Bank to not take tax on my savings account with my 800,00 baht.

 

My process is: Interest is credited, then an immediate 10% tax withheld.  I file a tax return at the end of the tax year and get it all back because it's under the minimum taxation level.  

The tax is 15%. 

[Oldie]

11 hours ago, CMBob said:

It does apply to a regular savings account but, if your interest is below a certain amount in that account, they don't do withholding on the savings account anyway. 

 

This is not correct anymore. Now they charge taxes on all interest payments starting with the first Satang. To avoid this you have to give your Thai tax ID to your bank.

[alphason]

18 hours ago, Proboscis said:

I am not sure whether you expect members of the forum to be either experts in International Tax, Thai taxation

This forum is where I learned that you could ask your bank to stop deducting the tax they started deducting since I think Jan 2019.  Just needed to go in with your Thai tax ID and fill in a form.

 

Krungsri stopped deducting the tax as expected after I gave my tax id,  but have now started taking it again, so was asking if you need to fill in the form and give tax id again in the bank after a certain period of time. I will of course check in the bank next time I go in and reapply.

[moontang]

The senior fixed deposit (CIMB) up to 1.8 million, 1 year fixed, currently paying 1.5% is the only one I know of that doesn't automatically withhold 15% of interest.  I have filed at three different revenue offices, and they couldn't have been more helpful.  Switching the refunds to a KTB debit card, caused a small glitch last year, but it was even easier this year.  Just don't volunteer any information that will confuse them into thinking you are scamming.  They will have questions, but a lot of it is just nosey Thai female stuff.  They practically forced me to take the mobile number of an accountant 25 years younger than me.  Still lives with her parents.  As far as a form that will stop the withholdings...possible, but I have never been offered it.  My refunds have ranged from 1200 to 3000.  It will not be much for 2020, but based on US experiences, I file for any amounts.

Edited September 16, 2020 by moontang

[Oldie]

3 hours ago, moontang said:

 They practically forced me to take the mobile number of an accountant 25 years younger than me.  Still lives with her parents. 

Why? 

[petermik]

7 hours ago, Oldie said:

Why? 

Because he has plenty of money....she,s looking for a farang to remove some/most of it....

[moontang]

1 hour ago, Oldie said:

Why? 

Because some of us don't eat hamburgers and craft beers with our partners.