Capital Inflows Subject To 30% Withholding

Bangkok Post: December 19, 2006

"Capital inflows subject to 30% withholding

Bank of Thailand to order financial institutions to withhold reserve requirement of 30 per cent of capital inflows, effective as of Tuesday to curb rising short-term inflows which push bath to a new 9-year high Monday at Baht35.09 to the US dollar.

Funds withheld from inflows for foreign direct investment can be returned as soon as evidence of the investment is provided.

Otherwise, all of the withheld funds can be returned after one year, as long as it can be documented that the initial funds remained in the country for the entire period. If the funds are withdrawn from the country in less than one year, only two-thirds of the amount withheld will be returned to investors."

Does anyone have a reading on this as to how it might apply to those transfering funds to an established private savings account here in the Kingdom? "Capital Inflows" falling under what specific determinations?

I suppose the question is for most: How does this affect those living here who might be transfering funds from abroad for living expiences. Would surly appreciate any and all accurate information.