Interest on bank deposit

[CMBob]

Always amazes me, in this country, just how hard it is to find all the relevant information--without this Topic I would have carried on assuming that the Tax deducted at source was 'non-refundable'--typical.

How long has this been available to reclaim? I have had 800K in an account for 9 years --never reclaimed a satang.

I don't have a clue...but sounds like you've kindly made donations to the Thai government for a few years.

With respect to my trip to the Chotana office two Mondays ago (I still don't have the check in hand....she told me it would be about 2 weeks), the kind lady there told me that I couldn't use the Kor 10 form (I'm not exactly sure why but she did say something about the amount of interest and withholding....my figure for a 22-month deposit ending in 2014 was a little over 10,300 B withheld) and I had the option (if I heard her right) of either doing it online or perhaps going to another office (she mentioned the one on Charoen Bpratet....which is on the north side of the road a few hundred yards before that street ends at Chang Klan).

I opted for the online deal so she proceeded to do it for me and to tried to show me how she was filling out the form on the internet so I'd be able to do it myself next year (since the form is all in Thai, she may have been a bit optimistic there....). All she asked from me was to see my Tax ID card, a copy of my passport photo page, my address, and the bank interest statement and, after she filled out the online form using those documents, she gave them all back to me (she didn't keep anything). And, in the process, she set me up with a user name (it's your Tax ID number) and a password so I could jump to the site, log in, and do it myself in the future (btw, the website is: www.rd.go.th). I'd also note that the form she used for me online was titled: ภ.ง.ด. 90 (and, no, I have no clue what that stands for). And I'd note that it made sense that she didn't even keep the bank interest statement as I see a spot on the form where she inserted a long number (probably an identifying number for Siam Commercial Bank) she obtained from the bank interest statement (so the Revenue Department can verify the withholding from whatever SCB files with that department).

In any event, we'll see how it goes....all that should be left for me is to receive (and spend) the refund.

[haybilly]

Thanks for the update-I'm off to Thanachart later.

[el jefe]

Haybilly -- You can claim refunds of the back taxes withheld for up to 3 years. So if you file in 2015 you can claim for 2012, 2013, and 2014. Everything I read says that you should file by 31 March for the prior year. Supposedly there is a 200 baht fee/penalty if you file after 31 March. I also thought there was a 200 baht fee/penalty for filing 2012 and 2013 late but I was not charged anything. As CMBob says, you're out of luck for all years before 2012.

CMBob -- Yes those were the same two forms I used -- Kor 10 and xxx 90. I was also given the choice of filing on line or using paper forms. I chose to go with paper since I wouldn't be able to do it on my own anyway. You needed the xxx90 form because if your tax withheld was 10,300 baht then your interest was approx 68k baht and therefore over the 30k limit.

bangmai -- No, no wasted trip. If I was just filing for 2014 or wanted to file on-line I could have done it all at the Chotana Rd office. I'll certainly go back there a year from now. i don't know what your problem is with that office. For everyone who only has 800k in a Thai bank and is earning less than 3.75% interest, the Chotana Rd office works fine. That's not my situation but it is similar. Obviously you have a very different situation and Nong Hoi is better for you.

[CMBob]

CMBob -- Yes those were the same two forms I used -- Kor 10 and xxx 90. I was also given the choice of filing on line or using paper forms. I chose to go with paper since I wouldn't be able to do it on my own anyway. You needed the xxx90 form because if your tax withheld was 10,300 baht then your interest was approx 68k baht and therefore over the 30k limit.

Yes, that's what I thought she said (that I had too much interest to use the Kor 10 form - which I had previously used for 2012 and 2013). Next year, the interest figure will be under the 30k mark(as I reduced the amount in my "visa" account and also only set it for 14 months) so my guess is I'll be back to using the Kor 10 form. No problem, that form is shorter and easier to figure out.

As an added update, I received a text tonight at 10:50PM from the Revenue Department (text sender actually reads "e-revenue") saying they sent the refund check by mail on the 7th. Am expecting it in the mail tomorrow...we'll see.

[bangmai]

and when I did go to Chotan, I was with a Thai person, and just to be sure I went into another office (Office of the Comptroller) to get a second opinion, because they will not hesitate to send you back and forth across town. Nong Hoi, Nong Hoi....I live in Mueang, and the interest was also paid in Mueang (Pantip Plaza to be precise). I am single, have O-A, and have Yellow Book. Oh, and my check has already cleared.

[haybilly]

Thanks to all for the advice--went to Thanachart bank, yesterday, and had quite a job getting them to accept that Tax Refunds could actually be made for more than just the preceding 12 months--eventually they accepted that it might be possible and calculated the Interest earned and tax deducted for the previous 3 years--I, too, have one year with higher than 30K interest earned, purely due to the way that the accounts interest was accrued and calculated--in fact the preceding year's Interest and tax was paltry--in effect they lumped almost 2 years of interest into one tax year.

From what I have read, due to this, I need to find my way to the Hong Hoi Office--round the corner, over the bridge from Holiday Inn/Rajavej, I understand.

It also sounds as if a penalty could be charged for years prior to the preceding 12 months--anyone got charged one yet?

Absolutely no chance of claiming for Tax years older than the previous 3 years--bugger! Mai Bpen Rai, I guess.

[Sparkles]

Thanks to all for the advice--went to Thanachart bank, yesterday, and had quite a job getting them to accept that Tax Refunds could actually be made for more than just the preceding 12 months--eventually they accepted that it might be possible and calculated the Interest earned and tax deducted for the previous 3 years--I, too, have one year with higher than 30K interest earned, purely due to the way that the accounts interest was accrued and calculated--in fact the preceding year's Interest and tax was paltry--in effect they lumped almost 2 years of interest into one tax year.

From what I have read, due to this, I need to find my way to the Hong Hoi Office--round the corner, over the bridge from Holiday Inn/Rajavej, I understand.

It also sounds as if a penalty could be charged for years prior to the preceding 12 months--anyone got charged one yet?

Absolutely no chance of claiming for Tax years older than the previous 3 years--bugger! Mai Bpen Rai, I guess.

It appears that 3 years is the maximum you can go back. I got another 2 cheques yesterday.The total amount of the 3 cheques received was a touch over 10,000 baht but better in my account than theres. I was asked to pay a fee of 200 baht (receipt issued) as I was late filing for refunds but I simply did not know,until this thread appeared. and previously asked the question at my bank before and was told it was not possible to get a tax refund.So it would appear that the banks are just as confused at we are.To fine you for getting a late refund is also a bit rich IMO

The questions could be asked of course why take the tax out in the first place if they are prepared to give it back ?

I got my tax card from City Hall and had to process the recovery at Hang Dong Amphur office,Guess it depends where you live.

[haybilly]

Sorry Sparkles--but you say that your process was completely different to the other posters? You got your Tax Code from the main tax Office, Chotana Road but they could not/would not process the refund and you had to go to the Hang Dong Ampur?

I,too, live in Hang Dong so suppose this will be same for me--I was hoping to go to the Nong Hoi Office where it seemed the whole charade could be handled in one Office--not so, I suppose?

[Sandman77]

On the homepage of my embassy I read that some eu country's have transatlantic agreement for non tax payers!

In case of, a Thai bank send all information back to your home country , and you got taxed when you come to your home country!

Singapore is a better place for saving , all money changers I ask where you bring your money, Aswer was always same to Singapore!

[haybilly]

Not sure what my home country would Tax me on? Apart from what they already do. .... the Tax claimed back, in most cases, is about 10K baht-not a big amount.

[el jefe]

It appears that 3 years is the maximum you can go back. I got another 2 cheques yesterday.The total amount of the 3 cheques received was a touch over 10,000 baht but better in my account than theres. I was asked to pay a fee of 200 baht (receipt issued) as I was late filing for refunds but I simply did not know,until this thread appeared. and previously asked the question at my bank before and was told it was not possible to get a tax refund.So it would appear that the banks are just as confused at we are.To fine you for getting a late refund is also a bit rich IMO

The questions could be asked of course why take the tax out in the first place if they are prepared to give it back ?

The staff at the banks aren't always confused. Sometimes they are just lazy. It took me several tries to get Bangkok Bank to issue the forms needed. They said my old accounts "weren't in their system". One of those accounts was closed in Dec 2013, less than a year from when I asked for the form. if you are persistent, you will eventually get the forms. Ask them to get the info from the main office in Bangkok.

The reason they take out the tax in the first place, and you have to fill out the forms to get the refund, is because not everyone is retired like you. If you work here or have other Thailand sourced income, you would have to file a tax return and might not be eligible for a refund.

[bangmai]

I just brought the used term deposit book in with me and handed it to them, at my home branch...that was the easy part. But, they don't no much at all about where to send you, or the inner-workings of farang red-tape. "Tax ID is for Thai People," quote from a BKKBank branch manager, probably worked there since the Vietnam Era.

[CMBob]

As a final note this year, received the check for the refund today. Seemed a bit strange that the text message from the Revenue Department said they mailed it on the 7th (which was strange in itself given I didn't think they worked on Saturdays) and it took until the 13th to get here. And same type of check as last year - drawn on Krungthai Bank and an "a/c payee only" check which can't be cashed but only deposited in one's account (and takes 2-3 days to clear).

What will be fun next year is when I attempt to file for the refund online. I'm thinking of adding a few extra zeroes....

[Sparkles]

Sorry Sparkles--but you say that your process was completely different to the other posters? You got your Tax Code from the main tax Office, Chotana Road but they could not/would not process the refund and you had to go to the Hang Dong Ampur?

I,too, live in Hang Dong so suppose this will be same for me--I was hoping to go to the Nong Hoi Office where it seemed the whole charade could be handled in one Office--not so, I suppose?

Haybilly I just followed instructions from the very pleasant guy at City Hall who issued the tax card....his words, you have to go to Hang Dong.No big deal for us as we live a lot closer to the Amphur office at Hang Dong than we do City Hall.

This confirmed the advice that I originally got from the BB. If you have problems with some banks its because they dont have a clue or the info is not on their computers and they have to do a manual check,this happened to us and thankfully a wised up employee explained it to her fellow worker. Can only express my experience, TIT ,the goal posts do tend to move around.Good luck.

[Sparkles]

It appears that 3 years is the maximum you can go back. I got another 2 cheques yesterday.The total amount of the 3 cheques received was a touch over 10,000 baht but better in my account than theres. I was asked to pay a fee of 200 baht (receipt issued) as I was late filing for refunds but I simply did not know,until this thread appeared. and previously asked the question at my bank before and was told it was not possible to get a tax refund.So it would appear that the banks are just as confused at we are.To fine you for getting a late refund is also a bit rich IMO

The questions could be asked of course why take the tax out in the first place if they are prepared to give it back ?

The staff at the banks aren't always confused. Sometimes they are just lazy. It took me several tries to get Bangkok Bank to issue the forms needed. They said my old accounts "weren't in their system". One of those accounts was closed in Dec 2013, less than a year from when I asked for the form. if you are persistent, you will eventually get the forms. Ask them to get the info from the main office in Bangkok.

The reason they take out the tax in the first place, and you have to fill out the forms to get the refund, is because not everyone is retired like you. If you work here or have other Thailand sourced income, you would have to file a tax return and might not be eligible for a refund.

Take your point El Jefe re taking out of tax but there would be many like me just leaving the 800,000 b deposited for visa extension reasons only and the account could be tagged as such.In this day and age surely it could be done and that would save a lot of mucking about.Some staff members at my BB branch were totally unaware of the refund option and yes probably lazy too

[CMBob]

Some staff members at my BB branch were totally unaware of the refund option and yes probably lazy too

I wouldn't expect the banks or bank staff to know about the refund option as their offices and systems have nothing to do with that part of it; however, the bank staff certainly ought to know about how to provide the interest statement and, in this digital day and age, it really seems lame for any bank to claim they can't find the records past two or three years.

The first time I applied for a refund was in January of last year and I was wondering what kind of puzzled/goofy look I was going to get when I went to my bank (SCB) to ask them for interest statements for the prior two years; however, my wonder was needless as they immediately knew what I was asking for and promptly whipped up the forms on their computer within about 5 minutes. No issue either when I got a form for 2014 last month. They obviously provide those for a lot of customers.

[Time Traveller]

Very good info indeed. Thanks for that.

The only question is why the banks do withhold the 15% in the first place, when one is entitled to a refund anyway ??

I'm just guessing but perhaps those of us that work it is added as income and as part of our tax liability when we submit our tax forms in March. Those not working, such as retirement, would not have sufficient tax liability to require filing and thus the entire amount returned.

Wrong. Tax payers have the option to choose to include income from interest in their tax return or not.

So if your marginal tax rate is above 15%, then it does not make sense to include it in your income tax filing. The 15 % is the final tax. However, if your income is low and marginal tax rate is less than 15% it makes sense to file a return with the interrest income. No file = no return

[el jefe]

As a final follow up --

My 3 checks (2012, 2013, 2014) were mailed in early March, approximately 3 weeks after I filed the refund claims and were waiting for me when I arrived. (I was away, avoiding the bad air in northern Thailand.). I deposited the checks on Friday and was told it would take 2-3 business days for them to clear, but they've already been credited to my account.

I think I may have also accidentally found a way around the 30k baht in interest issue that requires a trip to Nong Hoi instead of City Hall. I had a 15 month time deposit that came due this month. Most of the interest was credited in 2014. I'll have to file another 2014 form when I file for 2015 next January. I should be able to fill out the forms myself next year based on this year's forms. Hopefully they won't charge the 200 baht late fee. They didn't charge me this year and it's not that big a deal.

For those of you who want to file a refund for 2012, 2013, or 2014 without being charged a late fee, tomorrow may be the last day. It's easier to do this on time rather than doing it every 3 years but once you know the process it's pretty easy.

[scottishjohn]

Very good info indeed. Thanks for that.

The only question is why the banks do withhold the 15% in the first place, when one is entitled to a refund anyway ??

Probably because its not the banks job to decide if your entitled to a refund !

It is the same in the UK. Tax of 20% is deducted at source by the banks on all interest earned unless you have informed the bank (via an HMRC Form R85) that you are not liable for tax.