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Retention On Money Transfers

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I read recently on another thread, about a 30% retention by the BOT (or Thai gov't)

on transfers of over £10,000/US$20,000.

Did I imagine this, or can anybody clarify.

Thank you

The Rott

Any transfer of USD 20k or more is subject to a one year 30% withholding by the Bank of Thailand at 0% interest if it is to be used for a small number of uses (stock market related). If to be used for other reasons and the bank knows about it they will (or should not) send the money on. But if sent on there will be time and paperwork involved to get it returned. So for most things it is best to limit transfers to lower amounts - but if it is required you obtain foreign transfer paperwork, as for condo purchase, be sure it is clearly stated and alert your Thai bank to expect it. Recently some people have reported there banks have held money until they made a visit rather than have to forward and return later.

...be sure it is clearly stated...

That’s right. It is a good idea always to indicate the reason for the transfer on the payment order form, regardless of the amount, purpose or destination country, even when you send money to yourself. The form usually has a field called something like “message for beneficiary” or “purpose of payment” for this purpose. The funny thing, though, is that this message is often not passed on to the beneficiary by the receiving Thai bank, not even on the credit note obtainable from the bank on request.

--

Maestro

The single biggest problem in communication is the illusion that it has taken place

 

If you are transferring money for a condo purchase, will the bank still issue the foriegn exchange certificates required by the land office if you send money in a series of transaction each of under 20,000 USD.

...the foriegn exchange certificates required by the land office...

If you mean the Foreign Exchange Transaction Form, I believe the bank will not issue it for inward remittances below the equivalent of USD 20,000, but will on request give the standard credit note. The problem with the latter is that it usually contains no information about the purpose of the remittance.

--

Maestro

The single biggest problem in communication is the illusion that it has taken place

 

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