Tax Deducted from Savings Account

[ravip]

Are the entire interest accrued on a savings account taxable? 

 

Is there no tax free amount? 

[JohnnyBD]

36 minutes ago, ravip said:

Are the entire interest accrued on a savings account taxable? 

 

Is there no tax free amount? 

On my individual THB accts,15% tax is withheld on all the interest that's paid. There is no tax free amount. On our joint accts, no tax is withheld, and on the wife's individual THB accts no tax is withheld. 

[gamb00ler]

4 hours ago, JohnnyBD said:

On my individual THB accts,15% tax is withheld on all the interest that's paid. There is no tax free amount. On our joint accts, no tax is withheld, and on the wife's individual THB accts no tax is withheld. 

If your bank cooperates when you have a Thai tax ID, they will not withhold the 15%.  None of my banks (SCB, Kasikorn, Bangkok and Krungsri) take any withholding from my interest payments.  The first 20,000 of interest income is exempt from tax.  Amounts above that exemption are taxed at the tax rate applicable according to your annual income.  Bangkok bank will always withhold the 15% from fixed deposit accounts even if you have a Thai tax ID on file with them.

[Sheryl]

Interest is all taxable unless your total interest income is below a certain threshold.

 

The difference is, some banks will insist on witholding tax directly and some won't (which does nto change your tax liability).

 

It is possible to get a refund of withheld interest by filing a tax return (assuming you do not otherwise owe tax). I did it twice then stopped as each time it flagged a detailed and torturous review when the return hit the desk of the Provincial RD office. Who refused to believe, despite my age and "retirement" stamp in my passport, that I was not in fact working in Thailand. YMMV

[Srikcir]

19 hours ago, gamb00ler said:

Bangkok bank will always withhold the 15% from fixed deposit accounts even if you have a Thai tax ID on file with them.

My experience with KB savings account is the same regardless of the balance, withheld twice a year. For 2023 KB withheld 300 baht for interest dividends. 

[helloagain]

On 1/7/2025 at 12:33 PM, ravip said:

Are the entire interest accrued on a savings account taxable? 

 

Is there no tax free amount? 

Of held in your country on or before 31st Dec 2023 no tax to pay. If you bought here 1st Jan 2024 or after yes your interest is a possible tax liability.  And yes there are deductions, if you over 70, married to a thai, kids, but please go talk without giving your name and see the two female bosses at the 2 tax offices one in chalong and the other phuket town. They are ok, I've been twice just to get more info..

[black tabby12345]

On 1/7/2025 at 12:33 PM, ravip said:

Are the entire interest accrued on a savings account taxable? 

 

Is there no tax free amount? 

 

Not as far as I know of.

When an expat earns any bank interest here, 15% non-resident withholding applied automatically.

If you have TIN and make a tax declaration, may be different story.

If you have no other income from Thailand and the gross interest amount is below their tax bracket, once applied tax can be refunded.

That is something I heard before(never done myself though).

 

Experts comment welcome.

[TigerandDog]

On 1/7/2025 at 12:33 PM, ravip said:

Are the entire interest accrued on a savings account taxable? 

 

Is there no tax free amount? 

Foreigners with Thai bank accounts pay 15% tax on all interest earned.  Some banks deduct tax regardless of the amount, others wait until 20k baht interest has been earned and then back tax plus deduct tax on every additional interest payment made during the calendar year. Some banks pay interest monthly others only twice per year.  Regardless, of which way the interest is paid and tax deducted you can lodge a tax return with the Revenue Dept, supported by a bank letter stating how much interest was earned and tax deducted, and as long as your total Thai assessable income is less than 120k per year you should receive a 100% tax refund.

[gamb00ler]

In an earlier post is this thread I stated that the first 20,000฿ of interest earned was exempt from taxation.  That is not correct.  Perhaps it was in previous years.

 

Currently you have a choice of two options regarding taxation of interest.

 

Option A is let the banks take 15% withholding and then you don't include your interest in your taxable income.  This option is only available if the total interest you received is 20,000฿ or less.

 

Option B is you include the total interest you earned in your annual income, calculate the tax owed, then reduce the calculated amount by the amount (if any) that the banks withheld from your interest payments.

 

Option A is better if your annual income puts you in a Thai tax bracket where the rate is greater than 15% ( >> 750K฿) .

[chiang mai]

The first 20k baht of interest is not exempt, it is zero rated for tax, not quite the same thing.

[Bday Prang]

5 hours ago, helloagain said:

Of held in your country on or before 31st Dec 2023 no tax to pay. If you bought here 1st Jan 2024 or after yes your interest is a possible tax liability.  And yes there are deductions, if you over 70, married to a thai, kids, but please go talk without giving your name and see the two female bosses at the 2 tax offices one in chalong and the other phuket town. They are ok, I've been twice just to get more info..

I thought the age related deductibles started at 65.   You should visit again and try to speak with a male