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 

[gamb00ler]

On 1/8/2025 at 6:45 PM, chiang mai said:

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

In previous searches years ago I found articles that supported your statement.  In recent searches I couldn't find a good source for what your post states.  I did find the information I posted earlier about having two choices regarding taxation of interest.

 

Do you have a link to recent information on taxation of interest?

[OneManShow]

On 1/7/2025 at 5:22 PM, Sheryl said:

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

I got the withhold tax back till end of 2023. I stoped filing after 2023 and not going to file anymore. Not worth it. Just get what ever they deposit to my account as interest. Less hassle, less dealing with different attitudes. 

[scoutman360]

On 1/8/2025 at 6:43 PM, gamb00ler said:

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.

 

I have both SCB, and BBL. Both suddenly deducted tax on my interest last December. Even though they both have always had my tax ID number, they never deducted it before. Something is going on.  

[timendres]

On 1/7/2025 at 5:22 PM, Sheryl said:

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

 

When I asked my accountant about requesting the return of the WHT portion of the VAT that my company was paying, I was informed that asking for that money back was tantamount to requesting an audit.

[CallumWK]

On 1/7/2025 at 5:22 PM, Sheryl said:

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).

 

Correct, all my accounts with different banks get taxed from the very first baht of interest, because somehow they are aware that the total of my yearly interests of all banks combined is above 20K.

So at the start of the year I get the documents, quoting the taxes that were withheld, from each bank, file them with the revenue office and get them refunded.

A few years ago I had no problem to have the banks not deduct the withholding taxes, but suddenly the same banks refused that, although I never get above 20K interest in a single bank, so I think the revenue office flags your accounts once they know combined interests is above 20K

 

 

[Sheryl]

10 hours ago, timendres said:

 

When I asked my accountant about requesting the return of the WHT portion of the VAT that my company was paying, I was informed that asking for that money back was tantamount to requesting an audit.

company VAT is rather different from interest in a personal savings account.

[Wake Up1]

Bangkok Bank withholds 15 percent from fixed accounts even if they know your tax

number. 
 

Step one - last week went to Bangkok bank and got the tax receipt from the teller for tax paid 

 

step two - walked to Times Square Building on sukhumvit road ( located  between Sheraton Grande Hotel and Korean Town)  Went to the 13 floor  to Thailand tax office. There a nice lady speaks English and she filled  out my tax return for the withheld interest and showed me where to sign. 
 

then walk to desk 7 and file your return. Get a receipt and in 30 to 60 day you get a check in the mail for your withheld interest.  
 

if you don’t have a tax identification number then get one at Times Square  Building 13 floor and then repeat steps one and two above. 
 

if you never get a refund check after two months (happened once in last several years ) go to the tax office on sukhumvit Soi 13 and advise them with your passport and tax return.  They will resolve your issue and get you a replacement refund check.