Tax On Savings Account Interest

[highchol]

just updated my passbook and noticed tax deduction of approx 1500 on 10 k baht interest.My mrs updated her book and had no tax deductions.Any advice on the rules would be nice please.

[QED]

I didn't think we were allowed to get interest? Never really looked into it as I have not had any savings here for the past 5 years, but am now starting to accumulate some more significant amounts.

Is it easy to do? What about the rates for, say, fixed term deposits?

[highchol]

my account is a standard instant access, i think the rate is 0.75% but not sure.

i saw a flyer in bangkok bank offering 2.25% on fixed deposit of 15 months. Hence my initial question about the tax rates payable. if thais dont pay tax then i will consider putting money in mrs highchols account

[opalhort]

I also receive interest on a fixed deposit account with K bank and am also taxed on it. If the annual interest is below a certain amount (don't know the exact figure) you can request the bank not to deduct tax by signing an application form from the bank. I think some banks have started already simply not to deduct any tax for interest below a certain amount.

In any case there is no difference between a "farang" or Thai owned account at the K-Bank.

[Naam]

just updated my passbook and noticed tax deduction of approx 1500 on 10 k baht interest.My mrs updated her book and had no tax deductions. Any advice on the rules would be nice please.

i am banking with SCB and noticed several times tax deductions in the second half of the year. when i asked, i was told as soon as interest exceeds 20,000 Baht in a calendar year 15% witholding tax is deducted. the bank's practice is not to deduct tax below the afore-mentioned threshold. however, i am not sure whether this is according to tax or just bank rules.

[highchol]

just updated my passbook and noticed tax deduction of approx 1500 on 10 k baht interest.My mrs updated her book and had no tax deductions. Any advice on the rules would be nice please.

i am banking with SCB and noticed several times tax deductions in the second half of the year. when i asked, i was told as soon as interest exceeds 20,000 Baht in a calendar year 15% witholding tax is deducted. the bank's practice is not to deduct tax below the afore-mentioned threshold. however, i am not sure whether this is according to tax or just bank rules.

im with bangkok bank, now checking back seems they have always deducted tax even on annual interest of a few thousand baht.

[nong38]

I have just checked my book and joint book with wife, tax has been deducted at 15% One book is below 20,000 and one above, Better than 20% in the UK and rates are better here although both below inflation, just eroded less here.

[Daveroc]

just updated my passbook and noticed tax deduction of approx 1500 on 10 k baht interest.My mrs updated her book and had no tax deductions. Any advice on the rules would be nice please.

i am banking with SCB and noticed several times tax deductions in the second half of the year. when i asked, i was told as soon as interest exceeds 20,000 Baht in a calendar year 15% witholding tax is deducted. the bank's practice is not to deduct tax below the afore-mentioned threshold. however, i am not sure whether this is according to tax or just bank rules.

The explanation I received from Bangkok Bank was that the same rules applied to residents and non residents. If the funds are held in a Savings account there is no withholding tax deduction on the first 20,000 baht earned per annun. Thereafter a rate of 15% deduction on interest earned is applied.

If the funds are held in a Fixed deposit account, such as the 2.25% for 15 months previopusly mentioned, the deuction is applied to all interest earned.

[highchol]

just updated my passbook and noticed tax deduction of approx 1500 on 10 k baht interest.My mrs updated her book and had no tax deductions. Any advice on the rules would be nice please.

i am banking with SCB and noticed several times tax deductions in the second half of the year. when i asked, i was told as soon as interest exceeds 20,000 Baht in a calendar year 15% witholding tax is deducted. the bank's practice is not to deduct tax below the afore-mentioned threshold. however, i am not sure whether this is according to tax or just bank rules.

The explanation I received from Bangkok Bank was that the same rules applied to residents and non residents. If the funds are held in a Savings account there is no withholding tax deduction on the first 20,000 baht earned per annun. Thereafter a rate of 15% deduction on interest earned is applied.

If the funds are held in a Fixed deposit account, such as the 2.25% for 15 months previopusly mentioned, the deuction is applied to all interest earned.

thanks for this info.

i shall go and see the bank, should be fun!

wonder what my chances of getting a refund are?

[highchol]

have been to the bank, and the rule is that tax is paid on interest above 20k baht at 15%.

i pointed out that my interest for the year was around 18 k only, so could i have it back please....errr

no in my case because i have a monthly standing order to Mrs Highchol then tax is payable on all the interest.

So my monthly standing order at 20 baht a pop , has now in effect cost me 245 baht each!!! (15% 0f 18k = ( 2700 / 12 ) +20 )

watch out guys.

Oh i could get refund, but would have to go to bangkok to sort it out

[aurelius]

You can ask your branch to print a document which is a record of the tax that you have paid and if you are entitled to refund then you can submit that with your tax return. e.g. if you are retired and have no income then you may be entitled to a refund, or if you have fixed account interest earned less than 20k.

The thing about the linked accounts is a legacy government tax regulation which is aimed at businesses; but it catches regular customers too. Someone (well probably a lot of people) needs to lobby for it to get updated.