Thai Gov 10% Tax On Inbound Money Transfers?

[haveaniceday]

I have read a reference many times now over the years, that the Thai Gov tax 10% the gross amount on inbound telegraphic wire transfers into Thai bank accounts form abroad.

This also has to do with making it difficult for people to make money form the difference form the onshore Thai baht rate compared to the Offshore Thai baht rate.

Can anyone confirm this 10% tax please.

Also, when I wire funds, I chose to pay the fee, (typically $25usd about) to the originating bank, how come Thai banks then charge a 700b fee hidden into it? Do all I know Krung Thai and BKK bank do a 700b charge hidden in it.

Very interested on feed back re the 10% fee and tax over 20,000.

Thx

[Ulysses G.]

They do not hide the fee ( from me) and banks on both sides want to make money off the transaction. Can you normally get a wire in other countries with no fee (I have never gotten one on that side)?

[IMA_FARANG]

I transfer money monthly to Bangkok Bank from my U.S. bank account (my U.S. bank is not Bangkok Bank). I just did so last week. There is a $30 fee from my U.S bank for the wire transfer fee. There is NO FEE at the Thai end from Bangkok Bank for the transfer in. The Dollar amount is converted at the Dollar/Baht rate on the day it is credited to the Bangkok Bank account. That's the way it has been for years. I've never paid a 700 Baht fee to the Bangkok Bank, nor have I ever paid 10% on any incoming money.

I understand it is not the same when funds are transfered from the U.K. but I'm just saying how it is for me to bring in funds in Dollars from the U.S.

P.S.: It just hit me what you might be refering to as the 700 Baht "fee". If you transfer money from Bangkok into a Thai bank, they send a wire transfer request to your foriegn bank...and they charge you for that telex wire transfer request. That may be what you are paying.

For example, if I walk into Bangkok Bank and give them the number of my U.S bank account asking them to transfer $xxxx to Bangkok Bank, then Bangkok Bank has to send a telex request to my foriegn bank to initiate that transfer. They will charge you a fee (from Bangkok Bank)for that telex.

Edited August 25, 2010 by IMA_FARANG

[Ulysses G.]

I always have to pay a fee on both sides when I wire money from here to overseas.

Edited August 25, 2010 by Ulysses G.

[Aussietraveller]

I pay fees with both banks when sending money from Australia to Thailand.

$25.00 from my Australian Bank when sending money and a couple of hundred baht from my Thai bank.

Never paid a 10% fee/tax on any transfer.

[lingnoi1977]

Some issuing banks have a direct relationship whilst others use agents to complete the transaction abroad. I have always understood that I get a slight worse rate with those who use an agent. But I have never seen a 700 baht fee or similar here.

[HarrydePotter]

Don't worry, it's just not true......... yet

SCB charge 0.25% with a minimum of 200 Baht.

[IMA_FARANG]

After I read my first post I realised I may have not made it clear exactly what I meant. My monthly transfers are processed via wire transfer made to Bangkok Bank in New York from my local U.S. bank. The local bank has a $30 fee for all wire transfers. That's all I pay. There is no charge in Thaiand for the incoming transfer.

Now, If I were to walk into my bank in Bangkok, and give them the account number of my local U.S. bank, and ask them to process an incoming transfer of $xxxx, they would have to send a telex to my local bank to start that process. The bank here in Bangkok would charge me a fee for that telex they sent to initiate the process. That is what I think you are refering to as the "fee" here in Bangkok. In effect, you are really paying the cost of the telex the bank in Bangkok sent.

[HarrydePotter]

After I read my first post I realised I may have not made it clear exactly what I meant. My monthly transfers are processed via wire transfer made to Bangkok Bank in New York from my local U.S. bank. The local bank has a $30 fee for all wire transfers. That's all I pay. There is no charge in Thaiand for the incoming transfer.

Now, If I were to walk into my bank in Bangkok, and give them the account number of my local U.S. bank, and ask them to process an incoming transfer of $xxxx, they would have to send a telex to my local bank to start that process. The bank here in Bangkok would charge me a fee for that telex they sent to initiate the process. That is what I think you are refering to as the "fee" here in Bangkok. In effect, you are really paying the cost of the telex the bank in Bangkok sent.

Come into the chatroom then we can discuss this if you want....

[bonobo]

Just a piece of info which may help.  I have two US financial institutions, one a bank and one a credit union.  While they charge either $30 or $45 to make a wire to Thailand, both offer the option to file a recurring wire to a specific foreign bank account.  I can then go online any time or phone and request a wire be made and for how much to make it.  The fees for that are $9 and $12.

All it took was filling out a form, one for each destination account.

[lomatopo]

Bangkok Bank charges 0.25%, with a minimum fee of 200 baht and a maximum fee of 500 baht per in-bound wire transfer.

I have never heard of a 10% government tax.

Bank of America charges me $3.00 (three U.S. dollars) to initiate a wire transfer to Bangkok Bank. It takes ~ 3 - 5 days, goes through Bangkok Bank in NYC, so an ACH transfer.

Bangkok Bank in NYC takes a flat sliding fee:

Bangkok Bank in New York charges the following fees for funds transfers initiated via the US ACH system:

Transferred Amount Fee

Less than USD 50.00

Free

USD 51.00 - 100.00

USD 3.00

USD 100.01 - 2,000.00

USD 5.00

USD 2,000.01 - 50,000.00

USD 10.00

USD 50,000.01 or more

USD 20.00

Bangkok Bank in Thailand also charges a fee of 0.25% of the amount in the Baht currency (minimum of THB 200; maximum of THB 500) when the funds are deposited into the recipientÆs Bangkok Bank account in Thailand.

Edited August 25, 2010 by lomatopo

[wintermute]

There is no flat 10% tax. That would totally kill off the foreign real estate market in Thailand.

[Jingthing]

The mods should edit the headline here. It is written as if it is a fact and it is NOT a fact. Reading it may give some people a heart attack!

[sarahsbloke]

Bangkok bank do charge a fee for money paid in by SWIFT

Usually 200bht, it never shows as a deduction on any paperwork, you just get 200bht less than you sent.

[haveaniceday]

Thanks, there is several reference to a 10% tax on a sticky thread in Biz for bring in money.

I had never heard of it till today either and I was crapping my self.

Jingthing, Yes I agree, I could have made the title a bit more of a question than a statement as it is.

[astral]

I discovered by accident that it is a mistake to agree to pay the fees for both sides

to the originating bank.

The receiving bank still took its cut.

Now I tick the box to pay only the sending fees.

[KhunBENQ]

Definitely no 10% tax. Some posters have given formulas that sound similar to what I was told at Kasikorn. Unfortunately I do not remember the exact numbers, but was something like 500 B minimum + 0.xx % of the amount.

I never managed to transfer money without a deduction of 700 B or more (whatever kind of cost sharing I selected). So the formula seemed to be right.

[MAJIC]

I transfer money monthly to Bangkok Bank from my U.S. bank account (my U.S. bank is not Bangkok Bank). I just did so last week. There is a $30 fee from my U.S bank for the wire transfer fee. There is NO FEE at the Thai end from Bangkok Bank for the transfer in. The Dollar amount is converted at the Dollar/Baht rate on the day it is credited to the Bangkok Bank account. That's the way it has been for years. I've never paid a 700 Baht fee to the Bangkok Bank, nor have I ever paid 10% on any incoming money.

I understand it is not the same when funds are transfered from the U.K. but I'm just saying how it is for me to bring in funds in Dollars from the U.S.

P.S.: It just hit me what you might be refering to as the 700 Baht "fee". If you transfer money from Bangkok into a Thai bank, they send a wire transfer request to your foriegn bank...and they charge you for that telex wire transfer request. That may be what you are paying.

For example, if I walk into Bangkok Bank and give them the number of my U.S bank account asking them to transfer $xxxx to Bangkok Bank, then Bangkok Bank has to send a telex request to my foriegn bank to initiate that transfer. They will charge you a fee (from Bangkok Bank)for that telex.

Never heard of money tranferred from a UK Bank being Taxed at 10%,when I was on a OA Visa for many years, I would certainly have noticed if 80,000 baht Tax was lopped off the 800,000 baht in a Thai Bank, Visa requirement.Telex Transfer fee (normally around £20)and the relevent exchange rate on the day.

I Suspect this 10% Tax business,is just another Bar Room Rumour.

[electau]

Refer to the Tobin Tax, the idea originated from an economist in the USA in 1972.

Information here.

http://en.wikipedia.org/wiki/Tobin_tax

There is no such tax in Thailand or as far as is known it is not levied by any other country either.

Edited September 2, 2010 by electau

[mca]

Never heard of money tranferred from a UK Bank being Taxed at 10%,when I was on a OA Visa for many years, I would certainly have noticed if 80,000 baht Tax was lopped off the 800,000 baht in a Thai Bank, Visa requirement.Telex Transfer fee (normally around £20)and the relevent exchange rate on the day.

I Suspect this 10% Tax business,is just another Bar Room Rumour.

Exactly. When I moved my visa from extending on my wife's salary to 400k in the bank I transferred about a million baht's worth from the UK to here and was just charged a nominal bank fee for the transfer. I certainly wouldn't be living in a place that would lop (at current exchange rates) about 2000 quid from my hard earned.

[Langsuan Man]

The "tax" the OP is talking about is not a tax but was a refundable surcharge that the Thai Government instituted for a short time after the military coup that ousted Taksin. It was designed to prevent baht speculation like that which occurred during the 97 financial crisis

It only applied to inbound transfers of $20,000 USD or more and was repealed soon after the Samak government was elected

The 700 THB that the OP refers to is the charge for processing the "wire" via the international clearing house here in Thailand

I recently transferred a large amount of money and I was charged $25 by my US bank and $15 by someone along the food chain. The exchange rate given by SCB was the rate on their web site and the amount exchanged was exactly the amount of the wire request, minus $40

[Spaniel]

In August I transfered money from my Fidelty account to my Bangkok Bank account. Fidelty charged $15 to wire the money to Bangkok Bank New York. Upon arrival at Bkk Bank here I was charged B 500 plus a $10 Foreign Bank charge.

[ableguy]

The "tax" the OP is talking about is not a tax but was a refundable surcharge that the Thai Government instituted for a short time after the military coup that ousted Taksin. It was designed to prevent baht speculation like that which occurred during the 97 financial crisis

It only applied to inbound transfers of $20,000 USD or more and was repealed soon after the Samak government was elected

The 700 THB that the OP refers to is the charge for processing the "wire" via the international clearing house here in Thailand

I recently transferred a large amount of money and I was charged $25 by my US bank and $15 by someone along the food chain. The exchange rate given by SCB was the rate on their web site and the amount exchanged was exactly the amount of the wire request, minus $40

YOU REALLY KNOW YOUR STUFF, VERY REFRESHING, GOOD JOB,

[mca]

The "tax" the OP is talking about is not a tax but was a refundable surcharge that the Thai Government instituted for a short time after the military coup that ousted Taksin. It was designed to prevent baht speculation like that which occurred during the 97 financial crisis

It only applied to inbound transfers of $20,000 USD or more and was repealed soon after the Samak government was elected

Yes I transferred some money at that time and was rather concerned because it was in excess of 20000 usd but my bank (SCB) had me sign a form for what the money was for (in my case buying a car) and they released the whole amount.

[true blue]

Bangkok bank do charge a fee for money paid in by SWIFT

Usually 200bht, it never shows as a deduction on any paperwork, you just get 200bht less than you sent.

yes i agree,15 to 20 quid charges from home bank,about a fiver charges thai bank.