Tax on savings

[tinot]

Will I be taxed on savings that I transfer from a UK account into a Thai account?

I really think I need to seek some professional advice in this area. Can anyone recommend any firms here in Thailand or offer advice via DM for anyone with experience?

Since Ive left the UK my UK bank has been pestering me to sign a CRS & FATCA also for HMRC. Thailand aren't even part of that from what I gather so dont see why they're asking me.

Just want to make sure Im doing things right and staying within the law.

[StayinThailand2much]

Not on the Thai side. All you get taxed is 15% of your interest in an interest-bearing account. As for your UK assets, probably only while in the UK. (As far as I know, overseas assets are only an issue for citizens of the U.S., Hungary, Eritrea, and Myanmar.) - I would just google the CRS & FATCA and its implications, but I presume it to have only consequences for your accounts and assets in the UK.

Edited June 18, 2022 by StayinThailand2much

[tinot]

28 minutes ago, StayinThailand2much said:

Not on the Thai side. All you get taxed is 15% of your interest in an interest-bearing account. As for your UK assets, probably only while in the UK. (As far as I know, overseas assets are only an issue for citizens of the U.S., Hungary, Eritrea, and Myanmar.) - I would just google the CRS & FATCA and its implications, but I presume it to have only consequences for your accounts and assets in the UK.

Thanks. Do you have a link to anything official to back that up?

[userabcd]

"Will I be taxed on savings that I transfer from a UK account into a Thai account?" If it is pure savings from income that has already been taxed then there would be no tax to pay when it is transferred from the UK when it is deposited in an account in Thailand. Any basic research and reading on accounting websites and the the Thai tax dept website would clarify this.

 

Savings in a bank account in Thailand generate interest and the income (interest) is taxed automatically by the bank.

 

For CRS and FATCA, these are obligatory forms the banks need to have to share financial information with the tax authorities. If you do not fill them in stating where you are tax resident with tax numbers and sign them then the banks will pass your information about your account details and personal information to the tax authorities.

Edited June 18, 2022 by userabcd

[tinot]

3 minutes ago, userabcd said:

"Will I be taxed on savings that I transfer from a UK account into a Thai account?" If it is pure savings from income that has already been taxed then there would be no tax to pay when it is transferred to the UK. Any basic research and reading on accounting websites and the the Thai tax dept website would clarify this.

 

For CRS and FATCA, these are obligatory forms the banks need to have to share financial information with the tax authorities. If you do not fill them in and sign them then the banks will pass your information about your account details and information to the tax authorities.

Thanks but I am not transferring to UK account as stated already. 

[userabcd]

3 minutes ago, tinot said:

Thanks but I am not transferring to UK account as stated already. 

Yes thanks, I corrected my post, I meant money transfers to Thailand.

Edited June 18, 2022 by userabcd

[tinot]

3 minutes ago, userabcd said:

Yes thanks, I corrected my post, I meant money transfers to Thailand.

Thanks. Funds are currently in an ISA (tax free wrapper for non Brits) and tax was paid on earnings before deposited obviously.

 

Just I read somewhere about having to wait until following tax year to not pay tax but I guess thats just on earnings from UK for example if you were working.

 

I no longer have any income and will be living here on Thai marriage visa.

[StayinThailand2much]

1 hour ago, tinot said:

Thanks. Do you have a link to anything official to back that up?

Of course, you would also get taxed on any investments in Thailand. - And no, just talking from experience. Google is your friend here, or, if you prefer, consultant offices.

[tinot]

7 minutes ago, StayinThailand2much said:

Of course, you would also get taxed on any investments in Thailand. - And no, just talking from experience. Google is your friend here, or, if you prefer, consultant offices.

Right. Just, 15% on interest doesn't sound right to me. Negligible at best!

[stat]

2 hours ago, userabcd said:

"Will I be taxed on savings that I transfer from a UK account into a Thai account?" If it is pure savings from income that has already been taxed then there would be no tax to pay when it is transferred from the UK when it is deposited in an account in Thailand. Any basic research and reading on accounting websites and the the Thai tax dept website would clarify this.

 

Savings in a bank account in Thailand generate interest and the income (interest) is taxed automatically by the bank.

 

For CRS and FATCA, these are obligatory forms the banks need to have to share financial information with the tax authorities. If you do not fill them in stating where you are tax resident with tax numbers and sign them then the banks will pass your information about your account details and personal information to the tax authorities.

For some countries TAX Ids are not mandatory i.e. Thailand, as you are only obliged to apply for a tax id when transfering capital gains or interest in the same year when they  were generated or when you have a visa that allows you to work here. Some banks fail to understand this at first but usually come around to it. In reality I never heard that anyone ever had to pay taxes on their interest earned outside of Thailand, but this could change so dont transfer in the same year to be on the safe side.

[userabcd]

14 minutes ago, tinot said:

Right. Just, 15% on interest doesn't sound right to me. Negligible at best!

What does not sound right?

 

Those are according to Thailand RD tax rules. 15% tax on any interest earned on deposits from Thai banks.

[tinot]

13 minutes ago, stat said:

For some countries TAX Ids are not mandatory i.e. Thailand, as you are only obliged to apply for a tax id when transfering capital gains or interest in the same year when they  were generated or when you have a visa that allows you to work here. Some banks fail to understand this at first but usually come around to it. In reality I never heard that anyone ever had to pay taxes on their interest earned outside of Thailand, but this could change so dont transfer in the same year to be on the safe side.

Thanks. What about money from a property sale in UK for example? If those funds were transferred to a thai bank. Would the same apply?

So its only charged on the interest? That's just silly. I know rates are at there lowest in years but that sounds like its hardly worth it.

Edited June 18, 2022 by tinot

[userabcd]

2 hours ago, tinot said:

Thanks. Do you have a link to anything official to back that up?

Sherrings website gives some guidance about personal tax in Thailand

 

https://sherrings.com/interest-income-personal-tax-thailand.html

 

 

[userabcd]

9 minutes ago, tinot said:

Thanks. What about money from a property sale in UK for example? If those funds were transferred to a thai bank. Would the same apply?

So its only charged on the interest? That's just silly. I know rates are at there lowest in years but that sounds like its hardly worth it.

You need to first see if you had to pay CG tax in the UK. The UK would have first taxing rights on such income.

Edited June 18, 2022 by userabcd

[tinot]

3 minutes ago, userabcd said:

You need to first see if you had to pay CG tax in the UK.

No. Own home so nothing to pay.

[userabcd]

23 minutes ago, tinot said:

No. Own home so nothing to pay.

Provided you have met all the conditions and claimed tax relief from HMRC.

Edited June 18, 2022 by userabcd

[tinot]

9 minutes ago, userabcd said:

Sounds like you need to consult a professional accountant for tax advice.

What makes you say that?

Edited June 18, 2022 by tinot

[userabcd]

2 minutes ago, tinot said:

What makes you say that?

Nothing particular, just all the tax questions are better answered by tax professionals.

[tinot]

11 minutes ago, userabcd said:

Provided you have met all the conditions and claimed tax relief from HMRC.

 

Then with that HMRC evidence I guess you could transfer the funds of the sale to Thailand and not have to pay tax in Thailand on that CG.

Tax relief? You dont pay CGT on sale of your own home when its just that and not buy to let, business etc.

[tinot]

1 minute ago, userabcd said:

Nothing particular, just all the tax questions are better answered by tax professionals.

Fair point. I will do just that anyway no doubt. 

 

Any recommendations anyone?

[topt]

2 minutes ago, tinot said:

Tax relief? You dont pay CGT on sale of your own home when its just that and not buy to let, business etc.

You said you had left the UK. If so did you tell HMRC and ask to become non resident for tax?

If so then (as far as I am aware) property sales are liable to CGT although if fairly recent the reliefs should mean you may not have to pay much tax. 

[tinot]

1 minute ago, topt said:

You said you had left the UK. If so did you tell HMRC and ask to become non resident for tax?

If so then (as far as I am aware) property sales are liable to CGT although if fairly recent the reliefs should mean you may not have to pay much tax. 

No. I am not working nor have any business here. 

 

As Ive said already the property was not eligible for CGT! So, I have no idea where you're getting that idea from.

[topt]

4 minutes ago, tinot said:

Any recommendations anyone?

Yes, stop overthinking it.

Any taxes on property sales in the UK stay in the UK.

If it's only savings then you currently will not have to pay any tax on transferring money into Thailand. Not sure why you cannot accept this.

[tinot]

4 minutes ago, topt said:

Yes, stop overthinking it.

Any taxes on property sales in the UK stay in the UK.

If it's only savings then you currently will not have to pay any tax on transferring money into Thailand. Not sure why you cannot accept this.

I was referring to tax consultants. Recommendations.

 

No one has clarified exactly with the utmost certainty. No official links etc and it is a public forum so.

 

Who are you anyway, the ultimate authority on the matter?! Hardly. From your few contradictory posts here it shows that you don't have a clue so wind your neck in!

[topt]

2 minutes ago, tinot said:

No. I am not working nor have any business here. 

 

As Ive said already the property was not eligible for CGT! So, I have no idea where you're getting that idea from.

Working and business in Thailand is not relevant to the points I was making or the question I asked.

 

For others who may see this thread here is the govt. page on own house sales if you are registered with HMRC as non resident for tax purposes.

https://www.gov.uk/tax-live-abroad-sell-uk-home

 

 

[tinot]

4 minutes ago, topt said:

Working and business in Thailand is not relevant to the points I was making or the question I asked.

 

For others who may see this thread here is the govt. page on own house sales if you are registered with HMRC as non resident for tax purposes.

https://www.gov.uk/tax-live-abroad-sell-uk-home

 

 

We were and still are UK residents!

[topt]

2 minutes ago, tinot said:

Who are you anyway, the ultimate authority on the matter?! Hardly. From your few contradictory posts here it shows that you don't have a clue so wind your neck in!

Having just read my posts I cannot find any "contradictory" posts so please show me where I have made them so we can clear up any confusion for others who may come across this thread.

 

[tinot]

Then I suggest you re-read. Its pretty obvious. 

Edited June 18, 2022 by tinot