Tax Break For Thai Deposit Accounts

[george]

Tax break for deposit accounts with interest less than Bt20,000

BANGKOK: -- Finance Ministry is offering a tax break for people who deposit their money in savings account and whose annual accrued interest is no more than Bt20,000.

Finance Minister Korn Chatikavanij said yesterday that the Revenue Department had issued a regulation to waive the 15percent withholding tax on savings accounts, effective from yesterday.

The waiver covers about 62 million saving accounts totalling around Bt1.5 trillion.

Those who receive more than Bt20,000 in interest per year will still be subject to the tax. They can, however, file an annual tax payment at the end of the year by adding their interest return with other income for personal incometax payment.

Korn said the tax waiver for savings accounts had actually been in force since 1995, but banks continued to withhold tax because they did not know who had received combined interest of less than Bt20,000 across all their accounts. If depositors did not ask for a tax return from the Revenue Department, they would not in the past have benefited from the waiver.

As a result, the department received about Bt300 million to Bt400 million in withholdingtax revenue from banks annually.

The new regulation, however, makes its clear that banks will no longer withhold tax on savings accounts.

Considering the current very low interest rate on savings accounts, people would have to deposit about Bt4 million in order to get an annual return of more than Bt20,000, said Korn.

He said the ministry would not need Cabinet approval for a tax waiver on interest of up to Bt100,000 annually, since the coverage of the new regulation was large enough to include about 62 million out of the 63 million savings accounts in the system.

The tax break will support depositors who currently receive a low rate of return from their savings accounts, while the impact on government revenue will be small, said the minister.

The government has recently issued savings bonds worth Bt80 billion as it wants to offer alternative investment products for savers, while at the same time generating funds to finance public projects worth Bt1.4 trillion over the next three years.

The government is considering issuing more savings bonds or Islamic bonds in the coming months.

-- The Nation 2009-07-23

[DickWong]

Tax break for deposit accounts with interest less than Bt20,000

BANGKOK: -- Finance Ministry is offering a tax break for people who deposit their money in savings account and whose annual accrued interest is no more than Bt20,000.

Finance Minister Korn Chatikavanij said yesterday that the Revenue Department had issued a regulation to waive the 15percent withholding tax on savings accounts, effective from yesterday.

The waiver covers about 62 million saving accounts totalling around Bt1.5 trillion.

Those who receive more than Bt20,000 in interest per year will still be subject to the tax. They can, however, file an annual tax payment at the end of the year by adding their interest return with other income for personal incometax payment.

Korn said the tax waiver for savings accounts had actually been in force since 1995, but banks continued to withhold tax because they did not know who had received combined interest of less than Bt20,000 across all their accounts. If depositors did not ask for a tax return from the Revenue Department, they would not in the past have benefited from the waiver.

As a result, the department received about Bt300 million to Bt400 million in withholdingtax revenue from banks annually.

The new regulation, however, makes its clear that banks will no longer withhold tax on savings accounts.

Considering the current very low interest rate on savings accounts, people would have to deposit about Bt4 million in order to get an annual return of more than Bt20,000, said Korn.

He said the ministry would not need Cabinet approval for a tax waiver on interest of up to Bt100,000 annually, since the coverage of the new regulation was large enough to include about 62 million out of the 63 million savings accounts in the system.

The tax break will support depositors who currently receive a low rate of return from their savings accounts, while the impact on government revenue will be small, said the minister.

The government has recently issued savings bonds worth Bt80 billion as it wants to offer alternative investment products for savers, while at the same time generating funds to finance public projects worth Bt1.4 trillion over the next three years.

The government is considering issuing more savings bonds or Islamic bonds in the coming months.

-- The Nation 2009-07-23

Just another good PR. The fact is that since 1995, the bank no longer collect tax on deposits for interest less than 20,000 Baht. Korn have changed nothing.

[caf]

Tax break for deposit accounts with interest less than Bt20,000

BANGKOK: -- Finance Ministry is offering a tax break for people who deposit their money in savings account and whose annual accrued interest is no more than Bt20,000.

Finance Minister Korn Chatikavanij said yesterday that the Revenue Department had issued a regulation to waive the 15percent withholding tax on savings accounts, effective from yesterday.

The waiver covers about 62 million saving accounts totalling around Bt1.5 trillion.

Those who receive more than Bt20,000 in interest per year will still be subject to the tax. They can, however, file an annual tax payment at the end of the year by adding their interest return with other income for personal incometax payment.

Korn said the tax waiver for savings accounts had actually been in force since 1995, but banks continued to withhold tax because they did not know who had received combined interest of less than Bt20,000 across all their accounts. If depositors did not ask for a tax return from the Revenue Department, they would not in the past have benefited from the waiver.

As a result, the department received about Bt300 million to Bt400 million in withholdingtax revenue from banks annually.

The new regulation, however, makes its clear that banks will no longer withhold tax on savings accounts.

Considering the current very low interest rate on savings accounts, people would have to deposit about Bt4 million in order to get an annual return of more than Bt20,000, said Korn.

He said the ministry would not need Cabinet approval for a tax waiver on interest of up to Bt100,000 annually, since the coverage of the new regulation was large enough to include about 62 million out of the 63 million savings accounts in the system.

The tax break will support depositors who currently receive a low rate of return from their savings accounts, while the impact on government revenue will be small, said the minister.

The government has recently issued savings bonds worth Bt80 billion as it wants to offer alternative investment products for savers, while at the same time generating funds to finance public projects worth Bt1.4 trillion over the next three years.

The government is considering issuing more savings bonds or Islamic bonds in the coming months.

-- The Nation 2009-07-23

Just another good PR. The fact is that since 1995, the bank no longer collect tax on deposits for interest less than 20,000 Baht. Korn have changed nothing.

HSBC and Bangkok bank do.

[neverdie]

HEY, I have a good idea. Lets all start quoting the post above, can really stretch this topic out

[Camelot]

Right. Bangkok Bank do and will probably continue to do so unless you fill in one of their forms instructing them not to.

You have to ask for the form. They don't go out of their way to tell people about it.

Their assumption is that you probably have interest-bearing accounts at other banks and, if you haven't, you can claim it back through a refund from the Revenue Department.

[johnsjourney]

distraction. ever since the Asian crisis in 1997 gold has risen in an average month what 1% interest 'gives' in a year, interest rates are massively negative in long term inflation terms, money in the bank as cash doesn't make any sense to me.

[12DrinkMore]

I tried in several banks to apply for these government bonds. They offered 3%, then 4% and then 5% in succeeding years.

"Farang cannot buy!"

I wonder on what basis they don't want us to invest a bit of cash with the government?

[Heng]

Well, it hardly has to be an all or nothing decision (kinda like debates here over buying or renting real estate). There have been times when pork bellies were very attractive but I doubt anyone was holding all of their liquid assets in ONLY pork belly futures.

[hkt83100]

Lets all start quoting the post above, can really stretch this topic out

It should not be too difficult to make a change in the forum software, so it checks if the reply has less content then the quote. If yes, the post would be rejected and the writer will be thrown back to the entry form. These huige quotes drive me mad, too.

[SantiSuk]

Lets all start quoting the post above, can really stretch this topic out

It should not be too difficult to make a change in the forum software, so it checks if the reply has less content then the quote. If yes, the post would be rejected and the writer will be thrown back to the entry form. These huige quotes drive me mad, too.

Agree - it's pain

Dunno why TV.com cannot change the system to take the quotes reply button off the first posting, so that people cannot automatically quote the whole thing. It's bleeding obvious for the first few posts you are replying to the OP anyway. People would get used to assuming you are replying to the OP if you are not picking up a reply on a later posting in the thread.

[CHINWA]

I tried in several banks to apply for these government bonds. They offered 3%, then 4% and then 5% in succeeding years.

"Farang cannot buy!"

I wonder on what basis they don't want us to invest a bit of cash with the government?

That's what make Thailand different from other countries!... all other countries in Asia have grew in the last 25 years by opening their doors to foreigners and foreign investment without ever descriminating against their own nationals. Unfortunately, in Thailand things have been done on the contrary for a while closing as much door as possible (even to the Thais) and it is clear that it is very difficult for us to compete with our neighbors.

[CHINWA]

I tried in several banks to apply for these government bonds. They offered 3%, then 4% and then 5% in succeeding years.

"Farang cannot buy!"

I wonder on what basis they don't want us to invest a bit of cash with the government?

That's what make Thailand different from other countries!... all other countries in Asia have grew in the last 25 years by opening their doors to foreigners and foreign investment without ever descriminating against their own nationals. Unfortunately, in Thailand things have been done on the contrary for a while closing as much door as possible (even to the Thais) and it is clear that it is very difficult for us to compete with our neighbors.