Bot 30% Reserve Withholding On Foreign Transfers

[gdhm]

Hoping someone can advise me.

I am running around in circles trying to find out from Kasikorn Bank online support (and others at bank branches) what I must do to avoid the 30% Reserve withholding on transferring 70,000 GBP from the UK into my Thai Saving accounts. All seem very vague on detail and a error or mis-instruction could tie up 30% of my transfer for a year.

What is really annoying is that that whilst I am chasing my tail for precise instructions on what I can/cannot do and how, the GBP continue to to collapse daily which is costing me a lot of money.

The money is 100% for

1) Buy land some 20,000 GBP (equiv baht)to go to my Thai wife's account

2) 50, GBP (equiv Baht) Into MY account to Buy a House (not land) New car and leave a little for home improvements, contents, paperwork and Visa financial requirements

I have NOT signed any contracts for car, land or house because I do not know how much I will have when the money is converted into Baht by Kasikorn. BUT I expect to buy within 1 -2 months on a car and make a decision on land and house hopefully in the same time period.

Kasikorn seems to be telling em I can transfer 20,000 US $ (equivalent) without the 30% reserve being taken HOWEVER they have made no reference to whether I can send 7 separate transfers on the same day totalling 70,000 GBP an thus avoid the 30% or whether that is not allowed.

I understand I am allowed to transfer monies for house, car land, Visa contents purchases and NOT be subject to the 30% reserve being withheld form me BUT from what I have been told, I will need proof of Contract (not sure as Kasikorn email not precise) which I do not have until I decide on a house, car etc after transfer.

Must I have contracts PRE transfer or do I have a time limit after transfer by which time I must show I used to money as stated in the transfer.

If anybody has a definite 100% for sure understanding of the Reserve rule and what I must (must not do) to comply with BOT regulations whilst achieving my aim, I really could do with your input.

Many Thanks

Dave

[Chang_paarp]

The idea of keeping the transfers under US$20K may work, also spread them out over several days, and in the reason for transfer note section make sure the sending bank says house purchase, retirement support/ living expenses and vehicle purchase. This way the intended use is specified. You can get the correct paperwork (TT3?) to cover the incoming transfer that will allow you to take the money out of the country if you ant to leave later, as you have proof you brought it with you.

If your wife is in Thailand she should go to the branch where the money is being sent and speak to the manager prior to the transfer and explain what is happening and how inconvenient it would be if the bank did not allow the full amount to be cleared. It might mean you would have to find a new branch for this currency and your regular transfers of pension and other banking. She will be able to explain this in the correct manner.

Even in the event that the withholding is activated a visit to the bank and the appropriate form filed gets the funds cleared. The object is to stop currency speculation not to stop retirement funds being transferred.

[Pib]

Last week I transferred several hundred thousands U.S. dollars to our (the Thai wife and me) Bangkok Bank account in preparation to close on/buy a house in Bangkok in a few weeks. We called Bangkok Bank in advance to query about any possible withholding amount (a little nervous just like you) and was told the only withholding amount would be 10% "if, repeat, if" we were transferring the funds to a "business account." Plus, the full amount wired over would be available for immediate withdrawal...there was no holding period to make sure the wire transfer was good. Basically, since our account was just a regular savings account, no withholding amount or period would apply.

And I have confirmed via telephone banking the "full" amount of money wired over did indeed post to our account the same business day we sent it--no amount withheld. As FYI only, we did note code the wire transfer with "for home purchase" as we plan to get a foreign exchange transaction form from our Thai bank in case we sell the home in the future and want to transfer the dollars back out of Thailand.

Summary: assuming you have a regular savings account in Thailand there should be no amount withheld from the amount you wire into your Thai savings account. And the funds will be available for immediate withdrawal (like to pay for that home you plan to buy).

Edited January 7, 2008 by Pib

[backflip]

"Kasikorn seems to be telling em I can transfer 20,000 US $ (equivalent) without the 30% reserve being taken HOWEVER they have made no reference to whether I can send 7 separate transfers on the same day totalling 70,000 GBP an thus avoid the 30% or whether that is not allowed."

Well, why don't you ask them that specific question? Too, why do you need to transfer all of the money on the same day? I transferred $30KUSD with $15USD transfers, on 2 different days. Simple.

[gdhm]

", why do you need to transfer all of the money on the same day? I transferred $30KUSD with $15USD transfers, on 2 different days. Simple.

Not as simple as it may seem, I believe

The Exchange rate GBP to Thai Baht is dropping like a stone at present and STILL falling. By sending staggered transfers over a period or a week to 10 days (7 in all) I am likely to lose out on each delayed transfer

I am trying to do "damage control"

Additionally, although small, 7 SWIFT transfers waste outgoing and incoming charges. At the end of the day money is money.

I don't know how the transfers are recorded. Maybe I am allowed to send to different banks and different accounts OR maybe not as maybe the relevance is how much is sent by the transmitter.

I have no idea who or how it is decided what is OK and not. All I know is I need to be sure I can convince the power who decides on my transfer that it is NOT for ER speculation (which it most certainly is NOT)

Kind regards

Dave

Kind Regards

[Gary A]

I recently transferred $24,000 US with no problem. I told my bank that the transfer was to meet the 800,000 baht requirement for my retirement visa. Talk to your bank. It appears to me that it is at the bank's discretion whether to withhold or not.

[gdhm]

Thanks everybody for your opinions and advice.

I talked to Bangkok Bank yesterday. I expressed my concern at 30% being intercepted when the monies are for house, land (wife's purchase) and car purchase ONLY and according to the English speaking lady I spoke, to her branch will be asked about the transfer which she knows about. She said I will get the full 100% credited to my wife's and my accounts.

Hopefully this will be the case.

To be honest I fail to see that the BOT could possibly think that anybody planning currency speculation would transfer GBP to Thai Baht at this time, when the strength of the GBP against the baht has collapsed since early December 2007 and is still dropping almost daily.

Regards

Dave