Paying Tax on Fixed Deposit Accounts

[scoutman360]

Since I have a work permit and Thailand employment income that is more than the minimum threshold, I must pay tax on my bank interest. Correct? Normally Fixed Deposit accounts automatically deduct the tax. What about the Fixed Deposit accounts that do not deduct any tax? How do I pay the Thailand tax for interested on the fixed account? Same question for standard bank account interest from a Thailand bank?

Second question. What is the best way to transfer large amount of money from one bank to another? Someone told me a cashier's check is the way to go. How do I do that? Should it be made out to my name? Or to the Bank it is getting transferred to?

Much appreciated for your help.

[AyG]

Yes, cashier's cheque is the way to go. At one of the bank branches ask for a cashier's cheque made out to yourself. (Make sure that the name exactly matches that on the receiving account passbook. I've had problems in the past with a missing middle name on the cheque.) Also (optional) add the account number after the name for extra security.

[PhilsterBKK]

As far as the tax question. If the bank takes out the tax from your account and you file an income tax form, then you can claim and get your money refunded. I did this for a few years because my income tax rate was lower than the standard interest withholding rate with all my deductables.

Seeing as you have a work permit and can type in English, I suspect you will end up paying some income tax on your salary. In that case your top rate is probally higher than the withholding, so IMHO you should do nothing and not worry about it. Just fill out the income tax form and get some of your salary withholding refunded.

[AyG]

The OPs question was about accounts that pay gross, not net, and how to pay the tax owed.

For the few accounts of this type I've seen they've only been available to the elderly. I believe this is a concession for pensioners who are allowed to take up to 30,000 Baht/year interest tax free.

[scoutman360]

Thank you all for the very helpful responses. My employer currently takes care of tax deductions on my salary, and they also do my annual Thailand income tax return. So, bank interest profits outside of my salary is new to me. There are some Fixed Deposit accounts I want to take advantage of and I didn't know how to go about it correctly. Thanks again.

Sounds like the FD accounts with no tax deduction are not available to me.

[AyG]

For the few accounts of this type I've seen they've only been available to the elderly. I believe this is a concession for pensioners who are allowed to take up to 30,000 Baht/year interest tax free.

I now think my answer was wrong. It looks like anyone can deposit up to 600,000 Baht in 24 or 36 month equal installments and receive interest tax free.