How To Not Pay Interest On Bank Interest?

[davejones]

I have a fixed interest savings account with Bangkok Bank. What do I need to do to get the interest paid without tax being deducted? I'm not liable to pay any taxes in Thailand. So is it as simple as filling in a form at the bank, as I would do in the UK?

[meatboy]

tax is deducted at 15% on all fixed accs.you have to claim it back by registering at the local tax office,before you can do this on maturity you will get a tax certificate from bkk bank[you must ask for it ] it will have your name,address,interest earned and the amount of tax deducted.look at bank interest rates in this forum expecially the last couple of weeks for more info.

[davejones]

tax is deducted at 15% on all fixed accs.you have to claim it back by registering at the local tax office,before you can do this on maturity you will get a tax certificate from bkk bank[you must ask for it ] it will have your name,address,interest earned and the amount of tax deducted.look at bank interest rates in this forum expecially the last couple of weeks for more info.

Thanks.

[davejones]

I have received interest on my account dated 27 Jan 2013. I also have the tax certificate. Can I reclaim this year, or do I need to wait until next year?

[meatboy]

I have received interest on my account dated 27 Jan 2013. I also have the tax certificate. Can I reclaim this year, or do I need to wait until next year?

was the tax deducted on a fixed term?if the fixed term ended before jan 2013 you can claim it back now,if it matured jan 2013 i am sorry but you have to wait till jan 2014.i had one for jan7 2013.just get a large envelope to keep them in.

[davejones]

I have received interest on my account dated 27 Jan 2013. I also have the tax certificate. Can I reclaim this year, or do I need to wait until next year?

was the tax deducted on a fixed term?if the fixed term ended before jan 2013 you can claim it back now,if it matured jan 2013 i am sorry but you have to wait till jan 2014.i had one for jan7 2013.just get a large envelope to keep them in.

Fixed term ended around 27 Jan, so looks like I'll have to wait until 2014. But I might not be here then, so may not be able to reclaim. Might send my fixed savings back to UK, as I can get better rate, and not have tax deducted. And good exchange rate to change back at the moment.

[Khonwan]

You can open an account at the government backed Bank of Agriculture and Agricultural Co-operatives (BAAC); this pays interest free of tax. http://www.baac.or.th/baac_en/content-product.php

[davejones]

You can open an account at the government backed Bank of Agriculture and Agricultural Co-operatives (BAAC); this pays interest free of tax. http://www.baac.or.t...ent-product.php

What interest rate do they offer?

For me, I think it's easier to have in the UK, as I can easily transfer between accounts, open new accounts online, etc. Things are way too much hassle here, especially as I'm planning on moving to a different area of Thailand, and also spending time outside Thailand. Can't even get some things done at a different branch here. And transferring online sometimes costs as much as 10,000 baht. Ridiculous. Also, no way to set up new account if I'm not in the area when the account matures, so lots of lost interest.

[qdinthailand]

like your government back home doesn't tax interest on savings? What country is that?

The U.S. gov. taxes interest and earnings at 15% - part of the Bush tax cuts for the rich.

(In America, the common man - about 80% of the country - doesn't have enough savings to earn enough interest to save enough in taxes to actually realize 'what a deal'!)

The U.S. gov doesn't let you claim it back. Thailand will refund it? Now that's a deal!

[BlackPuddingBertha]

You can open an account at the government backed Bank of Agriculture and Agricultural Co-operatives (BAAC); this pays interest free of tax.

The site says "no tax" on instant access accounts, so they are just like every other bank (up to 20K interest anyway). They dont say the same thing about their fixed deposits, and they dont publish their interest rates on the site.

[BlackPuddingBertha]

like your government back home doesn't tax interest on savings? What country is that?

The UK allows non-residents to be paid interest gross and does not tax them on it.

The UK does not tax its non-resident citizens on any income arising outside the UK, or require them to file a tax return for that income, or require them to provide any information about their savings outside the UK.

The UK does not subject non-residents to capital gains tax, nor does it tax non-residents on dividend income beyond the amount paid at source.

I hope all US citizens are enjoying their independence.

[qdinthailand]

like your government back home doesn't tax interest on savings? What country is that?

The UK allows non-residents to be paid interest gross and does not tax them on it.

The UK does not tax its non-resident citizens on any income arising outside the UK, or require them to file a tax return for that income, or require them to provide any information about their savings outside the UK.

The UK does not subject non-residents to capital gains tax, nor does it tax non-residents on dividend income beyond the amount paid at source.

I hope all US citizens are enjoying their independence.

So DaveJones is not a UK resident? BlackPuddingBertha obviously isn't, from your reply. But what's this got to do with Dave Jones? (I'm thinking he's the Brit in The Monkeys rock band made for TV back in the 60's?). I bet Dave Jones, Monkey or not, pays UK taxes on his interest/dividends/earnings/capital gains.

[GavinK]

like your government back home doesn't tax interest on savings? What country is that?

The UK allows non-residents to be paid interest gross and does not tax them on it.

Provided your annual UK earned income is less than your personal allowances, right ?

[chiang mai]

like your government back home doesn't tax interest on savings? What country is that?

The UK allows non-residents to be paid interest gross and does not tax them on it.

Provided your annual UK earned income is less than your personal allowances, right ?

Correct

[Pib]

This Bangkok Bank website talking Fixed Deposits mentions if you give them your Tax ID you may be eligible for waiver of tax. Of course if a person has a Thailand Tax ID number then he is probably filing a yearly Thai tax return...but the OP mentioned he is not liable for taxes in Thailand so I expect he has no Tax ID number nor is filing a yearly return.

Otherwise, it sounds like a person would need to file a Kor 10 Request for Refund of Tax Payment each year (no tax ID needed...I didn't need one to file the request) to get the refund. Fairly easy to submit the Kor 10. One of the latest ThaiVisa threads on this subject is at this Link but there have been other threads.

I know this really don't answer the OP's question, but I expect having a Thailand Tax ID is critical to the process to possibly prevent the 15% withholding tax.

Edited February 15, 2013 by Pib

[BlackPuddingBertha]

So DaveJones is not a UK resident? BlackPuddingBertha obviously isn't, from your reply. But what's this got to do with Dave Jones?

As far as I know he is technically resident here at the moment (though he wont be if he goes back to live to the UK, of course). Even if he is resident in the UK he can get his UK bank interest paid tax-free if his total income does not exceed the personal allowance.

[BlackPuddingBertha]

like your government back home doesn't tax interest on savings? What country is that?

The UK allows non-residents to be paid interest gross and does not tax them on it.

Provided your annual UK earned income is less than your personal allowances, right ?

Correct

Hmm. Not exactly.

A non-resident's UK tax liability on deposit interest is limited to the tax deducted at source (though if he has other UK income apart from deposit interest and dividends it may become more complicated). So if a non-resident has all his bank interest paid gross (and doesn't have other taxable UK income) he has no further liability to UK tax. The personal allowance is not relevant to this and it doesn't matter how much the interest amounts to in total.

[meatboy]

This Bangkok Bank website talking Fixed Deposits mentions if you give them your Tax ID you may be eligible for waiver of tax. Of course if a person has a Thailand Tax ID number then he is probably filing a yearly Thai tax return...but the OP mentioned he is not liable for taxes in Thailand so I expect he has no Tax ID number nor is filing a yearly return.

Otherwise, it sounds like a person would need to file a Kor 10 Request for Refund of Tax Payment each year (no tax ID needed...I didn't need one to file the request) to get the refund. Fairly easy to submit the Kor 10. One of the latest ThaiVisa threads on this subject is at this Link but there have been other threads.i questioned bkkb on the the,if you have tax id.you might be eligable for interest to be paid gross.answer sorry no can.

I know this really don't answer the OP's question, but I expect having a Thailand Tax ID is critical to the process to possibly prevent the 15% withholding tax.

[chiang mai]

Yoouré talking about where the person has only savings interest, I'm thinking of where income other than just savings interest is involved, most expats are retirees who also have rental income or retirement income, there will be very very few (if any) UK retirees these days who have substantial savings interest (more than the tax allowance) arising from onshore savings accounts, because the rates are so poor.

[BlackPuddingBertha]

Yoouré talking about where the person has only savings interest, I'm thinking of where income other than just savings interest is involved, most expats are retirees who also have rental income or retirement income, there will be very very few (if any) UK retirees these days who have substantial savings interest (more than the tax allowance) arising from onshore savings accounts, because the rates are so poor.

Deposit interest, gilts coupons and dividends can all be free of income tax and CGT, even if you have other income. However, there may be a downside to this as you may lose the personal allowance. How this affects the individual will depend on his circumstances. Personally I have a fairly high UK income from interest and dividends but no other UK income at all. When they start paying my UK state pension (if they ever do) then I may need to revise the way I invest but based on current figures I would in fact be making no changes if my pension was being paid now.

Rates have only become poor quite recently: I opened a 5-year deposit at 4.5% in October last year, and another one at 4% just before Christmas. My average return on long UK TDs is currently just over 4.5%

[chiang mai]

Yoouré talking about where the person has only savings interest, I'm thinking of where income other than just savings interest is involved, most expats are retirees who also have rental income or retirement income, there will be very very few (if any) UK retirees these days who have substantial savings interest (more than the tax allowance) arising from onshore savings accounts, because the rates are so poor.

Deposit interest, gilts coupons and dividends can all be free of income tax and CGT, even if you have other income. However, there may be a downside to this as you may lose the personal allowance. How this affects the individual will depend on his circumstances. Personally I have a fairly high UK income from interest and dividends but no other UK income at all. When they start paying my UK state pension (if they ever do) then I may need to revise the way I invest but based on current figures I would in fact be making no changes if my pension was being paid now.

Rates have only become poor quite recently: I opened a 5-year deposit at 4.5% in October last year, and another one at 4% just before Christmas. My average return on long UK TDs is currently just over 4.5%

I didn't realise gilts and dividends could also be paid gross, useful to know.

[BlackPuddingBertha]

I didn't realise gilts and dividends could also be paid gross, useful to know.

Dividends cant be paid gross nor can a non-resident claim back the tax paid, except for a couple of special types of share. However, there is no further liability on dividends for non-residents, no matter how much they pay out. No CGT either.

Gilt coupons have long been paid tax-free to non-residents but I wouldn't buy any at the moment! They are at the top of a very steep hill.

[chiang mai]

I didn't realise gilts and dividends could also be paid gross, useful to know.

Dividends cant be paid gross

Can be paid gross or cannot, make up your mind!

[BlackPuddingBertha]

Can be paid gross or cannot, make up your mind!

My mind is decidedly made.

I never said that dividends could be paid gross. I said that "Deposit interest, gilts coupons and dividends can all be free of income tax and CGT ...." and this is the case.

[chiang mai]

Can be paid gross or cannot, make up your mind!

My mind is decidedly made.

I never said that dividends could be paid gross. I said that "Deposit interest, gilts coupons and dividends can all be free of income tax and CGT ...." and this is the case.

Ooops, misread, apologies!

[bender92]

like your government back home doesn't tax interest on savings? What country is that?

The U.S. gov. taxes interest and earnings at 15% - part of the Bush tax cuts for the rich.

(In America, the common man - about 80% of the country - doesn't have enough savings to earn enough interest to save enough in taxes to actually realize 'what a deal'!)

The U.S. gov doesn't let you claim it back. Thailand will refund it? Now that's a deal!

In the US interest is treated as income, the tax rate depends on your total income, deductions, etc. Capital gains are taxed lower, and most Americans do have that as 401Ks and stock in companies. I'm an average guy, not rich, and that is what I did.