Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part II

[maxman71]

Hello Fellow Aussies--

If you would be so kind, I would like to know the following:

1) Can a foreigner open a savings account in Oz? (I understand they can; although some banks require Aussie residency)

2) Does it matter which country the person has citizenship (I am a US citizen) and which country I live in (Thailand)

3) What sort of taxation would I be liable for in Aussie (say I earned about 27K/year A$ in interest)

4) Any specific bank(s) anyone is willing to recommend? Some are paying over 6% on an online savings account.

5) Anything else I should know?

Many thanks in advance.

[CrossBones]

you wont need to pay tax if you are non resident

6% might keep up with inflation.... or may not the way things are going.

Better buy gold bullion... or put money into aussie stocks doing pretty well right now. You can buy into them with an international share dealing account.. i dont know there are many more rules for american citizens when overseas than other farangs. You might be liable for tax in the US even if you are not a resident there

[maxman71]

you wont need to pay tax if you are non resident

6% might keep up with inflation.... or may not the way things are going.

Better buy gold bullion... or put money into aussie stocks doing pretty well right now. You can buy into them with an international share dealing account.. i dont know there are many more rules for american citizens when overseas than other farangs. You might be liable for tax in the US even if you are not a resident there

Many thanks...yes, I may be liable for US taxation, but not sure, checking with my accountant as there is a provision in US tax code that as long as I am out of the US at least 330 calendar days a year, I get a sizeable deduction. Just don't know if that applies to interest income or not. Plus the foreign account needs to be reported to US tax authorities...they are cracking down on offshore accounts not being reported big time.

[Ned]

I'd check that info. I can't imagine that the Aust Tax Office won't take a chunk of that $27K.

[soundman]

Moved to Banking forum.

[BEENTHEREDONETHAT]

You will be charged a flat 10% of the earnings on the account. You do not have to be a resident of Oz to open an account. You might want to give a little thought to New Zealand as it normally pays a bit higher % return than the Ozzie dollar and if you are a non resident you only have to pay 2% of the earnings for handling, no tax. The down side is you have to go to New Zealand to set the account. But they are very nice to deal with and when you wire $ into Thailand it normally only takes a couple of hours to get it, if you do it first thing in the morning.

Either way you have the currency exchange to consider, but that can go for you as well as against you.

[maxman71]

You will be charged a flat 10% of the earnings on the account. You do not have to be a resident of Oz to open an account. You might want to give a little thought to New Zealand as it normally pays a bit higher % return than the Ozzie dollar and if you are a non resident you only have to pay 2% of the earnings for handling, no tax. The down side is you have to go to New Zealand to set the account. But they are very nice to deal with and when you wire $ into Thailand it normally only takes a couple of hours to get it, if you do it first thing in the morning.

Either way you have the currency exchange to consider, but that can go for you as well as against you.

Great info, thanks. I will consider maybe setting up accounts in both NZ and OZ.

[Naam]

You will be charged a flat 10% of the earnings on the account. You do not have to be a resident of Oz to open an account. You might want to give a little thought to New Zealand as it normally pays a bit higher % return than the Ozzie dollar and if you are a non resident you only have to pay 2% of the earnings for handling, no tax. The down side is you have to go to New Zealand to set the account. But they are very nice to deal with and when you wire $ into Thailand it normally only takes a couple of hours to get it, if you do it first thing in the morning.

Either way you have the currency exchange to consider, but that can go for you as well as against you.

Great info, thanks. I will consider maybe setting up accounts in both NZ and OZ.

please state one valid reason why you are interested to establish accounts in NZ and/or OZ

for the record: NZD interest is since considerable time lower than AUD interest and the outlook is that it will remain.

[Naam]

Many thanks...yes, I may be liable for US taxation, but not sure, checking with my accountant as there is a provision in US tax code that as long as I am out of the US at least 330 calendar days a year, I get a sizeable deduction. Just don't know if that applies to interest income or not. Plus the foreign account needs to be reported to US tax authorities...they are cracking down on offshore accounts not being reported big time.

unfortunately for you it does not apply.

[david96]

You must be physically present in Australia and you will have to provide 100 points of ID to the bank.

You must have an Australian address.

If you do not have a Tax File Number tax on the interest will be at the max rate. To obtain a Tax File Number

you will have to contact the Australian Taxation Office.

But why would you want to have an account in Australia when you are neither a temporary or permanent resident?

[neverdie]

You must be physically present in Australia and you will have to provide 100 points of ID to the bank.

You must have an Australian address.

If you do not have a Tax File Number tax on the interest will be at the max rate. To obtain a Tax File Number

you will have to contact the Australian Taxation Office.

But why would you want to have an account in Australia when you are neither a temporary or permanent resident?

You don't need to have an Australian address. Non Residents can but are NOT REQUIRED to have a Tax File Number. Non Residents with an overseas address will be charged a Non Resident 10% with-holding tax on interest earnt.

ps: they want accounts there because its one of the places in the world that pays the highest interest rates on deposits.

Edited March 3, 2010 by neverdie

[david96]

You must be physically present in Australia and you will have to provide 100 points of ID to the bank.

You must have an Australian address.

If you do not have a Tax File Number tax on the interest will be at the max rate. To obtain a Tax File Number

you will have to contact the Australian Taxation Office.

But why would you want to have an account in Australia when you are neither a temporary or permanent resident?

You don't need to have an Australian address. Non Residents can but are NOT REQUIRED to have a Tax File Number. Non Residents with an overseas address will be charged a Non Resident 10% with-holding tax on interest earnt.

ps: they want accounts there because its one of the places in the world that pays the highest interest rates on deposits.

You can open an Australian Bank account on a student or a tourist visa but you must supply 100 points of ID. They will ask you for your address in Australia.You do not have to obtain a Tax File Number but if you do not you may be taxed at the maximum rate. Note the word may.

Presumably you are looking at a term deposit.

You will be visiting Australia to open this account with a bank in person?

Australians residents who do not declare their TFN to their bank are taxed at the max rate, that is why they give their TFN to their bank.

And the ATO has access to bank accounts for Income Tax purposes.

Try this bank website. http://www.commbank.com.au/

[jp123]

You must be physically present in Australia and you will have to provide 100 points of ID to the bank.

You must have an Australian address.

If you do not have a Tax File Number tax on the interest will be at the max rate. To obtain a Tax File Number

you will have to contact the Australian Taxation Office.

But why would you want to have an account in Australia when you are neither a temporary or permanent resident?

You don't need to have an Australian address. Non Residents can but are NOT REQUIRED to have a Tax File Number. Non Residents with an overseas address will be charged a Non Resident 10% with-holding tax on interest earnt.

ps: they want accounts there because its one of the places in the world that pays the highest interest rates on deposits.

You might want to try Singapore. Most banks offer NZD & AUD accounts and Fixed Deposits. Interest is not taxable in Singapore. I believe you will only need a passport to open an account and will need to sign a declaration of the source of the funds. It appears you have a sizable sum based on your projected interest per annum. Anything over 200K SGD you will be eligable for Priority/Elite/Treasures membership which will means you will get your own "Relationship Manager". This makes life much easier when it comes to tranfers, increasing your returns etc etc. Bangkok to Singapore is 2hrs and reasonably cheap flight are easily available from several budget airlines.

Regards

[david96]

Australia may have higher interest rates, but one must factor in income tax on interest, and also the FX rate, now high but that could change and the FX rate could fall.

Remember in 2001 the AUD/USD fell to $0.47, now it around $0.90.

Singapore sounds a far better financial environment.

[jp123]

Australia may have higher interest rates, but one must factor in income tax on interest, and also the FX rate, now high but that could change and the FX rate could fall.

Remember in 2001 the AUD/USD fell to $0.47, now it around $0.90.

Singapore sounds a far better financial environment.

Agreed.....a banker friend of mine once told me "the higher the interest rate the higher the risk"

I am not an FX guy so please dont quote me but IMHO there is alot more upside to the NZD.

[neverdie]

You must be physically present in Australia and you will have to provide 100 points of ID to the bank.

You must have an Australian address.

If you do not have a Tax File Number tax on the interest will be at the max rate. To obtain a Tax File Number

you will have to contact the Australian Taxation Office.

But why would you want to have an account in Australia when you are neither a temporary or permanent resident?

You don't need to have an Australian address. Non Residents can but are NOT REQUIRED to have a Tax File Number. Non Residents with an overseas address will be charged a Non Resident 10% with-holding tax on interest earnt.

ps: they want accounts there because its one of the places in the world that pays the highest interest rates on deposits.

You can open an Australian Bank account on a student or a tourist visa but you must supply 100 points of ID. They will ask you for your address in Australia.You do not have to obtain a Tax File Number but if you do not you may be taxed at the maximum rate. Note the word may.

Presumably you are looking at a term deposit.

You will be visiting Australia to open this account with a bank in person?

Australians residents who do not declare their TFN to their bank are taxed at the max rate, that is why they give their TFN to their bank.

And the ATO has access to bank accounts for Income Tax purposes.

Try this bank website. http://www.commbank.com.au/

I am sorry David, but we are going around in circles. I know this first hand, having done it. You do NOT need an Australian address to open a bank account in Australia. You can attend the branch in Australia, provide 100 points of id and open the account with an overseas address. You do NOT need a TFN and as a NON RESIDENT and with-holding tax will be deducted at the rate of 10%.

Australian residents who do NOT provide a TFN will be slogged at the highest personal income tax rate.

The Australian currency is a High Yeilding currency, like many others in the world they can go up and down quite dramatically and in my time I have seen it vary against the thai baht from around 20 baht to the $AUD to 32 baht to the $AUD. Not so long back, a year and a half ago the Aussie was buying more than 98 cents USD.

[Naam]

You must be physically present in Australia and you will have to provide 100 points of ID to the bank.

You must have an Australian address.

If you do not have a Tax File Number tax on the interest will be at the max rate. To obtain a Tax File Number

you will have to contact the Australian Taxation Office.

But why would you want to have an account in Australia when you are neither a temporary or permanent resident?

You don't need to have an Australian address. Non Residents can but are NOT REQUIRED to have a Tax File Number. Non Residents with an overseas address will be charged a Non Resident 10% with-holding tax on interest earnt.

ps: they want accounts there because its one of the places in the world that pays the highest interest rates on deposits.

[neverdie]

You must be physically present in Australia and you will have to provide 100 points of ID to the bank.

You must have an Australian address.

If you do not have a Tax File Number tax on the interest will be at the max rate. To obtain a Tax File Number

you will have to contact the Australian Taxation Office.

But why would you want to have an account in Australia when you are neither a temporary or permanent resident?

You don't need to have an Australian address. Non Residents can but are NOT REQUIRED to have a Tax File Number. Non Residents with an overseas address will be charged a Non Resident 10% with-holding tax on interest earnt.

ps: they want accounts there because its one of the places in the world that pays the highest interest rates on deposits.

I said, "one of the places". Certainly much higher rates than most of the west, anyway.

[Naam]

Agreed.....a banker friend of mine once told me "the higher the interest rate the higher the risk" I am not an FX guy so please dont quote me but IMHO there is alot more upside to the NZD.

if you are not a forex guy why do you think NZD has a lot more upside potential and versus which currency?

[jp123]

Agreed.....a banker friend of mine once told me "the higher the interest rate the higher the risk" I am not an FX guy so please dont quote me but IMHO there is alot more upside to the NZD.

if you are not a forex guy why do you think NZD has a lot more upside potential and versus which currency?

Your right....I had NZD/SGD in mind. Just before the crisis it was approx 1 NZD = 1.20 SGD and at that time the NZD was making 8.5% interest. It dropped to around .72 NZD to 1 SGD and is now back to .97 NZD = 1 SGD. Based only on what I here.....in the media NZ expects to start raising interest rates mid 2010. As a result I expect (hope) the NZD will recover more.

The OP is in USD and after checking it has dropped the same against most other currencies. I apolagize to all readers for any confusion, my mind works in SGD as I just left after 8 years.

[redfish44]

Hi maxman71,

I would not advise opening a bank account in Australia if yu are not oing to live there for the following reasons:

Banks in Australia charge crazy fees for almost everything relative to other countries.

The government will be able to keep a very close eye on your accounts via the tax office (ATO).

It is hard to tell which deductions in your account are bank vs govt related if you are new to Aus banking (eg FID).

The fact you won't have an Aussie tax file number this would probably cause a few problems at some point, irrespective of what the rules should be (the average Aussie employee often has little idea of rules for offshore and foreign situations even if the sign on the door and their company website states their company does).

There are much better options in Asia.

I would recommend Singapore or Hong Kong. Singapore has great AUD and NZD rates at the moment, better than anything you would likely get in Aus, and you can switch to other currencies easily if your accounts are in Singapore or Hong Kong and the Aussie dollar takes a serious dive (which it sometimes does).

Good luck.