Interest withholding tax refund

[Poopa]

Can someone explain in simple terms if and how a foreigner on retirement visa can get the withholding tax charged on bank deposits refunded?

 

I tried this several years ago, and went to the revenue office in Center Condo Pattaya at that time, but was told that I needed a personal tax ID to apply.

 

I didn't have one at that time, and still don't have one since I never worked or did business in Thailand, but I have a yellow book and pink ID card.

 

So it will be appreciated if some kind soul could explain the procedure to me.

[Oxx]

First you apply for a TIN.  Requirements described at http://www.rd.go.th/publish/21987.0.html

 

Then you file a tax return after the calendar year end, either on paper or via the Internet.

[Briggsy]

You need to apply for a tax number. I think the form is a ส.ป.10.1

[Poopa]

Does applying for a TIN has any down sides, like having to file tax returns every year, regardless of if you want to make any claims or not?

 

Are the withholding tax refunds unlimited or is there a ceiling to the amount per bank/year/ account?

[Poopa]

Additional question.

 

I just notice the following remark on the link Oxx posted.

 

" However, a taxpayer who is an individual or a payer of income who is an individual is not required to apply for a TIN if he has and uses a personal identification number (PIN) in accordance with the civilian registration law. He can use his PIN instead of TIN for tax return filing purposes."

 

Since I have the pink ID card, would the number on it be the PIN, and so I don't need to apply for TIN?

[Briggsy]

9 minutes ago, Poopa said:

Does applying for a TIN has any down sides, like having to file tax returns every year, regardless of if you want to make any claims or not?

 

Are the withholding tax refunds unlimited or is there a ceiling to the amount per bank/year/ account?

If you have no taxable income in Thailand in any given year, there is no obligation to file a tax return. This information is in the notes to the tax return.

 

Your withholding tax refund will be limited by the amount of personal allowances you are entitled to.

[Poopa]

1 minute ago, Briggsy said:

Your withholding tax refund will be limited by the amount of personal allowances you are entitled to.

 

 

Can you translate that to noob English?

[Briggsy]

Just now, Poopa said:

 

 

Can you translate that to noob English?

I will provide an example.

 

You are not taxed on your first 150,000 Baht of income per year. If you are married or have kids, this amount may be higher.

 

Withholding tax on bank interest is usually charged at 15%.

 

15% x 150,000 Baht = 22,500 Baht of tax should be recoverable.

 

Unless you have several million Baht in Thai bank accounts, you are going to get it all your withholding tax back.

[Poopa]

1 minute ago, Briggsy said:

I will provide an example.

 

You are not taxed on your first 150,000 Baht of income per year. If you are married or have kids, this amount may be higher.

 

Withholding tax on bank interest is usually charged at 15%.

 

15% x 150,000 Baht = 22,500 Baht of tax should be recoverable.

 

Unless you have several million Baht in Thai bank accounts, you are going to get it all your withholding tax back.

 

So if I understand correctly, since I'm single, the maximum I will be able to recover is 22,500 Baht?

[Briggsy]

3 minutes ago, Poopa said:

 

So if I understand correctly, since I'm single, the maximum I will be able to recover is 22,500 Baht?

I am not a qualified Thai tax technician so I am not competent to say.

I would use this as a ballpark starting figure. The Thai tax system has a lot of allowances. It also has a lot of different withholding tax rates.

 

Remember the 22,500 Baht refers to tax deducted in one year, not the interest, net or gross, and certainly not the account balance. (How much money have you stashed in Thai bank accounts?? )

 

The key figure for you to calculate is your gross taxable income in Thailand for any given tax year and then work from there.

[Poopa]

1 minute ago, Briggsy said:

I am not a qualified Thai tax technician so I am not competent to say.

I would use this as a ballpark starting figure. The Thai tax system has a lot of allowances. It also has a lot of different withholding tax rates.

 

Remember the 22,500 Baht refers to tax deducted in one year, not the interest, net or gross, and certainly not the account balance. (How much money have you stashed in Thai bank accounts?? )

 

The key figure for you to calculate is your gross taxable income in Thailand for any given tax year and then work from there.

 

Well without posting personal details, at the 1.75% interest I earn in my BAY account, I will earn a multiples of that 150.000 Baht interest every year.

 

Does Thailand regard bank interests as taxable income, and if so if I earn more than 150.000 Baht in interests that I have to declare them?

 

Would declaring over 150.000 Baht in interests cost me more in income tax than the 15% withholding tax.

 

Is there some site where I can find the income tax rates?

[chiang mai]

3 minutes ago, Poopa said:

 

Well without posting personal details, at the 1.75% interest I earn in my BAY account, I will earn a multiples of that 150.000 Baht interest every year.

 

Does Thailand regard bank interests as taxable income, and if so if I earn more than 150.000 Baht in interests that I have to declare them?

 

Would declaring over 150.000 Baht in interests cost me more in income tax than the 15% withholding tax.

 

Is there some site where I can find the income tax rates?

 

The tax tables are here: http://www.rd.go.th/publish/6045.0.html

[Briggsy]

Your average combined balance for the whole year would need to be over 8.5 million Baht.

 

Multiples of that = 20 million Baht or more.

 

Tax rates are here.

 

Seriously if you are holding all that money in Thailand, it would be good advice to employ the services of a qualified tax accountant.

[Poopa]

4 minutes ago, Briggsy said:

Your average combined balance for the whole year would need to be over 8.5 million Baht.

 

Multiples of that = 20 million Baht or more.

 

Tax rates are here.

 

Seriously if you are holding all that money in Thailand, it would be good advice to employ the services of a qualified tax accountant.

 

Why the need for a accountant, I also wouldn't employ one if I held that money in my home country, so where is the difference.

 

I just read in the tax rate tables that up to 749.000 Baht income the tax rate is 15%, so until that amount in received interests the tax will be withhold automatically.

 

I also think to understand that following clause mean I can get refunded a maximum of 30.000 Baht in interest withholding tax. Is that correct?

 

Personal allowance
Single taxpayer	30,000 baht for the taxpayer

[Briggsy]

1 minute ago, Poopa said:

 

Why the need for a accountant, I also wouldn't employ one if I held that money in my home country, so where is the difference.

 

I just read in the tax rate tables that up to 749.000 Baht income the tax rate is 15%, so until that amount in received interests the tax will be withhold automatically.

 

I also think to understand that following clause mean I can get refunded a maximum of 30.000 Baht in interest withholding tax. Is that correct?

 

Personal allowance
Single taxpayer	30,000 baht for the taxpayer

You have failed to add the 150,000 nil rate band to the 30,000.

 

This basic error highlights the possibility of the need for a qualified person to help you ensure you pay the least tax as it is clear you are struggling with this.

 

Of course, the choice lies with you.

 

I sorted out my own withholding tax refund but mine was way under the taxable income limit.

 

Up to you, as they say.

[Poopa]

2 minutes ago, Briggsy said:

You have failed to add the 150,000 nil rate band to the 30,000.

 

This basic error highlights the possibility of the need for a qualified person to help you ensure you pay the least tax as it is clear you are struggling with this.

 

Of course, the choice lies with you.

 

I sorted out my own withholding tax refund but mine was way under the taxable income limit.

 

Up to you, as they say.

 

Does that mean I should take the 150.000 nil rate and add to that the 30.000 Baht allowance, so I have actually 180.000 Baht in interests on which I can claim a refund for the withholding tax.

 

As for you remarks about the accountant. An accountant will charge me at least 20.000 Baht, so where are the savings with an income that consists of interest rates only?

[Oxx]

48 minutes ago, Briggsy said:

You have failed to add the 150,000 nil rate band to the 30,000.

 

This really is utterly irrelevant.

 

OP, just get a TIN, fill in a tax return, send it off.  Let the tax man calculate the tax due or the refund available.  You'll be treated fairly.

[dabhand]

The OP may be interested in some of the posts on this thread which refer to claims for repayment of withholding tax:

 

http://www.thaivisa.com/forum/topic/951527-tax-on-foreign-income-remitted-into-thailand/

[Pib]

This thread which started in 2013 should help...it still applies today.  Your tax office should issue you your tax ID when you are filing your first refund request.   I know the years I filled for a refund of interest withheld my tax office was super helpful, basically filled out the easy applicable forms, and I pretty much just signed the forms.  Around a month from filing for a interest refund request I got my refund check in the mail.