Bank interest and tax

[zlodnick]

The wife and I have accounts with Bangkok Bank. Mine is a fixed account and hers a savings account.

 When I update my account each year, interest is credited to my account and tax is taken . My wife gets interest, but no tax is taken.

 

 I would like to know why one is taxed and the other is not.

I don't mind paying the tax, I'm just wondering if she has to claim the interest on her income tax.

 

TIA  Z

[gamb00ler]

Your wife must be Thai and as such she has a Thai national ID number.  That is also her Thai tax ID.  You can also get a Thai tax ID and then ask banks to not withhold tax from your interest payments from your regular savings accounts.  However, I believe that on fixed deposit accounts, the bank will still withhold tax after you have a tax ID.  As an alternative to a fixed account you could open an SCB EZ Savings account which pays 1.5% per year but in monthly installments.  This account has no bank passbook, but Chiang Mai Immigration accepted my SCB account with 800K for my retirement extension last year.

 

I'm not sure about your wife being required to report her interest income.  I do know that the first 20K of interest for each taxpayer is exempt from income tax.

[zlodnick]

Thanks gambooler, answers my question.

 

Z

[PJ71]

16 minutes ago, gamb00ler said:

Your wife must be Thai and as such she has a Thai national ID number.  That is also her Thai tax ID.  You can also get a Thai tax ID and then ask banks to not withhold tax from your interest payments from your regular savings accounts.  However, I believe that on fixed deposit accounts, the bank will still withhold tax after you have a tax ID.  As an alternative to a fixed account you could open an SCB EZ Savings account which pays 1.5% per year but in monthly installments.  This account has no bank passbook, but Chiang Mai Immigration accepted my SCB account with 800K for my retirement extension last year.

 

I'm not sure about your wife being required to report her interest income.  I do know that the first 20K of interest for each taxpayer is exempt from income tax.

SCB is the worst bank of the lot IMO.

 

No website now - wtf?

[Mike Lister]

Your wife, and you, have an option to reclaim the tax by filing a return or allowing the revenue to keep the tax as full settlement, in which case no return is due.