Getting tax on interest back?

[Orton Rd]

Started stopping me tax summer 2019, Krungsri bank said if I gave them a tax number they would stop. What is the fastest way to go about it- get the tax number first then go to the bank for a statement of tax paid, then go back to the tax people to apply for a refund? Or get a statement first then visit the tax office. Would I get it all back if I did it this month? only a few thousand.

[DrDave]

For getting a refund, I think it depends upon the office and the person you deal with. I had no luck at the Phuket office a few years back, even though I presented the required tax withholding statement from the bank. The woman in the office had just decided she wouldn't process the refund for no apparent reason. She started asking for proof of where the money in my account came from (USA) and proof that tax had been paid in my home country - all total BS and completely irrelevant. To make matters worse, she didn't speak any English, so all conversation had to be translated through my wife. I know that others have been successful, but in the end I decided it just wasn't worth the hassle for less than 2,000 baht.

[topt]

21 hours ago, Orton Rd said:

Would I get it all back if I did it this month? only a few thousand.

Tax year runs January to December so if you are claiming for 2019 as well you would have to pay 100 or 200 baht for late filing......

Filing is normally Jan to March for previous year although with Covid I think they have extended it.

Bank will give you statements and then you need to go to your local revenue office and tell them nicely what you want to do and they should generate a TIN for you - as long as you don't get someone like DrDave above....

 

If you don't speak Thai then best to have someone with you who does and understands what you are trying to do. make it clear you are only trying to reclaim tax on bank interest so don't need to do a full tax return. Even in Jomtien/Pattaya the staff facing for applications do not want to or cannot speak English. 

[JimGant]

22 hours ago, DrDave said:

I presented the required tax withholding statement from the bank. The woman in the office had just decided she wouldn't process the refund for no apparent reason. She started asking for proof of where the money in my account came from (USA) and proof that tax had been paid in my home country

We see a lot of these roadblocks -- in my case, no work permit, no tax ID. I'm pretty sure this was in error, and that another agent would have had a more positive answer -- but the onus is not on me to fight Thai bureaucracy to get my taxes back. And I say this (this is for US taxpayers) from the wording in IRS Pub 514, "Foreign Tax Credits for Individuals."

Quote

Foreign tax refund. You cannot take a foreign tax credit for income taxes paid to a foreign country if it is reasonably certain the amount would be refunded, credited, rebated, abated, or forgiven if you made a claim.

Thus, from personal experience, and from all the related dialogue here on TV, it is NOT REASONABLY CERTAIN that you'll get your withholding taxes on interest back from the Thai tax authority.

 

Which is great news for Yanks, 'cause now you just claim those Thai taxes as a tax credit on your US tax return. And if these Thai taxes are less than $300 filing single (or $600 filing married), no need to file the Schedule 1116 (which isn't a big deal) and thus enter the Thai tax as a single line item and get these taxes back dollar for dollar.

 

This is entirely kosher, particularly when you hold up the Thai-US tax treaty, which gives Thailand first taxation authority on Thai interest earned; and relief from double taxation by allowing a tax credit for these Thai taxes on one's US tax return. Audited on this? Are you kidding -- the IRS doesn't have the resources now to even go after the 7 figure crowd. Plus, per the above, you're completely on solid ground.

 

So, Yanks, forget fussing with Thai authorities on tax IDs or getting back nitnoy withholdings. You'll get it all back with your US tax filing.

Edited January 16, 2021 by JimGant