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[soihok]

Hi.

I will cut this short to avoid rambling.

Basically I am looking for advice on bringing earned funds into Thailand, to the amount of about 4 million Baht. I am worried about having to pay a "tax" on bringing these funds in (if one exists).

• Money is in Malaysian Ringgit in a Malay Bank. My Thai wife and I are joint account holders of this Malay bank.
• Wish to deposit the funds from the Malay bank into a Thai Bank account held by my wife, in the same name as her Malay bank account.
• Problem is that Malaysia doesn't allow for it's own currency to be sent out of the country, meaning I have to either buy Baht or another foreign currency inside Malaysia to send out.
• I have tried both buying and sending Baht and purchasing USD then sending to the account in Thailand, by telegraphic transfer. The better option was to buy Baht here and send to Thailand, the USD route meant that a good portion of it was deducted along the way. I put this down to several banks being involved and being hit by 2 x forex transactions (Ringgit -USD in Malaysia, then USD - Baht in Thailand).

If I send 4 million Baht into Thailand (buying it here in Malaysia and sent via a TT), can I expect to be hit with a charge or tax?

If the money is sent in my wifes name, can there be any benefit (I am not Thai by the way)?

I don't yet hold a bank account in Thailand.

Interestingly, the best rates I have found to transfer to Thailand from Malaysia is via a Thai owned restaurant in KL that do remittances on the side. I give them the Ringgit, they offer a better rate than the bank and inform their Thai counterpart to deposit the money in Baht into the account in Thailand. Takes about an hour.

I wouldn't want to do this with the equivalent of 4 million baht though.

Any advice is appreciated. Thanks.

[soihok]

Sorry, just to add.

Use to live in Singapore and sent Sing dollars to Thailand, where it was exchanged at the bank at quite reasonable rates.

Can't do this with Malay Ringgit tho.....

[wordchild]

there should be no tax liability if you are bringing in your/your wifes savings, you can be liable for taxation in Thailand if you are 1) resident in Thailand (ie for at least 185 days in the year) and 2) you bring in earnings that you made overseas during the current (same as calendar) year.Earnings from the previous year are not taxable. This is the rule but ,to be frank, you or your wife would need to be existing Thai taxpayers for you even to be on the radar for the Thai tax authorities for this.

I suspect you or your wife could face more questions about the source of funds if you bring in baht, i believe all large transfers in of Thai baht are subject to some extra reporting requirements by the Bank of Thailand. Much better to bring in dollars and, for that amount, there should be zero issue but your wife will have to give the bank the basic details as to where the funds are from and why they are comming into Thailand.

Edited October 27, 2013 by wordchild

[soihok]

Thanks.

Tax resident in Malaysia at the moment, never been tax resident Thailand.

Will there be any extra charge with the USD coming, other than the exchange at the bank. I read somewhere that there is a 10% surcharge on bringing in funds.

[wordchild]

Thanks.

Tax resident in Malaysia at the moment, never been tax resident Thailand.

Will there be any extra charge with the USD coming, other than the exchange at the bank. I read somewhere that there is a 10% surcharge on bringing in funds.

no there isnt any surcharge. its possible you are thinking about the time a few years ago when, in order to control speculation the BOT imposed some fairly draconian restrictions on overseas entities purchasing/holding Thai baht.

For that amount,in dollars , you should get a pretty good rate from your bank in Thailand.

Edited October 27, 2013 by wordchild

[SantiSuk]

Your receiving Thai bank will probably ask you to complete a form that deals with their responsibility towards the Bank of Thailand (central bank) to disclose the purpose of the funds coming into Thailand. It also has benefits to you as it permits you to re-export that cash without further question, so hang onto the copy unless you are certain that the funds are to be held in Thailand until exhaustion. The requirement to make the return applies to all incoming deposits over the equivalent of US$50,000.

I have always specified that the funds were for "investment in Thailand". Last time (earlier this month) that phrase became insufficient for my bank (Krungsri) and I had to record what sort of investment. May be safer and more generic to say "household expenditures and medium term cash savings" or similar - but of course an accurate description of your intentions is always the best course.

[Naam]

no tax, no surcharge, no form for the BoT to be completed (it's done by the bank), no problems, label "personal expenses".

if money might be transferred offshore again ask bank for relevant document.

[soihok]

Thanks very much for replies and advice guys.

I think I was getting mixed up with the old BOT ruling, glad its not in place now.

Cheers