Why is TAX being taken from my Krungsri Bank savings account?

[Monkie Business]

6 hours ago, 55Jay said:

About the same experience I had at a small town tax office, and I had the same feeling that it was too easy, something wasn't right. 

 

The small tax office called us and said they couldn't process the refund after all, that we would have to report to the main tax office in the city.  And that we should take our marriage license, and other things, I forget the details now.

 

We went and the clerk with my documents asked questions and seemed unsure, so she called a Supervisor over who said she would have to verify my home country's tax treaty/agreement with Thailand.  I knew the answer but OK, let them do their thing.  A while later Supervisor returned said all's well, refund could proceed.

 

I was able to see the progress/status on-line after that.  The refund wasn't moving.  Wife called the tax clerk, she apologized for not moving it along and said she would.  Next check, she was gone on leave.  Next check, she had returned, and apologized again for not processing the return and that it needed approval from Bangkok (something like that).  It finally went through, I think it took 2 months beginning to end.  Others here have had better experiences.

 

That's why I decided to avoid fixed accounts and tax returns, and stay with the Krungsi accounts despite falling interest rates.  Will have to deal with it again now.  Hopefully can do it all online this time. 

After reading some past  comments on how easy it was  going to be to apply for and get a tax refund I was hoping that in my case it was going to have a similar easy out come .

 

 The tax office lady I think mentioned to my wife that my tax ID number was the password to use for the online web site where you can apply / check your situation . I forgot to ask the lady for the tax department online web site url address , would you happen to remember it ? . 

 

Thanks .

 

 

 

 

[Pib]

Don't worry too much about the questions the tax office asked about other income and them seemingly focusing you towards filing online/checking status online....that all normal.  Every time I filled for a refund of bank interest tax withholding (4 times here in Bangkok) the tax office rep would always ask about "any other income from within Thailand" because "any refund" is based on your total income...not just bank account interest income.     I would just say no as I'm retired foreign military, do not work in Thailand, etc.  They hear that answer...it satisfies them...they fill out some more of the form, etc.

 

They are pushing more and more for online filing now days...and of course they always want to tell  you you can check refund status online versus trying contact the tax office on the phone/in person.   Filing online does speed things up a lot I heard, but I never did...always filed in person.  First time I filed/got the refund the whole process took about 6 weeks with most of that seemingly being the tax office just getting the refund check processed internally as that the approval for refund within the office happened within about two weeks.  Different parts of the tax office handle different parts of the filing and refund process.   Seems like tax office are kinda like immigration offices around Thailand in that they all operate somewhat differently...can make a person thing each makes up its own rules...throw in some Thai-English communication disconnects and a person can get worried/confused sometimes.  Later year refunds went faster from 2 to 4 weeks total time from filing to check in-hand.  

 

The last time I filed was several years ago because like 55Jay after interest rates rolled off so much on fixed accounts I stopped using them and just got a Krungsri MTD for keep my big money which I can access immediately....within seconds if needed for emergencies, annual retirement extension of stay proof, etc.    But unlike 55Jay who keeps billions of baht in his multiple MTDs (he's rich), I only have one MTD and keep the balance below a level which earns over Bt20K internest per year which prevents the tax withholding.  

 

 

 

 

[55Jay]

1 hour ago, Pib said:

Don't worry too much about the questions the tax office asked about other income and them seemingly focusing you towards filing online/checking status online....that all normal.  Every time I filled for a refund of bank interest tax withholding (4 times here in Bangkok) the tax office rep would always ask about "any other income from within Thailand" because "any refund" is based on your total income...not just bank account interest income.     I would just say no as I'm retired foreign military, do not work in Thailand, etc.  They hear that answer...it satisfies them...they fill out some more of the form, etc.

 

They are pushing more and more for online filing now days...and of course they always want to tell  you you can check refund status online versus trying contact the tax office on the phone/in person.   Filing online does speed things up a lot I heard, but I never did...always filed in person.  First time I filed/got the refund the whole process took about 6 weeks with most of that seemingly being the tax office just getting the refund check processed internally as that the approval for refund within the office happened within about two weeks.  Different parts of the tax office handle different parts of the filing and refund process.   Seems like tax office are kinda like immigration offices around Thailand in that they all operate somewhat differently...can make a person thing each makes up its own rules...throw in some Thai-English communication disconnects and a person can get worried/confused sometimes.  Later year refunds went faster from 2 to 4 weeks total time from filing to check in-hand.  

 

The last time I filed was several years ago because like 55Jay after interest rates rolled off so much on fixed accounts I stopped using them and just got a Krungsri MTD for keep my big money which I can access immediately....within seconds if needed for emergencies, annual retirement extension of stay proof, etc.    But unlike 55Jay who keeps billions of baht in his multiple MTDs (he's rich), I only have one MTD and keep the balance below a level which earns over Bt20K internest per year which prevents the tax withholding.  

Good read, thanks.  Time to dust off the records and figure this out.

 

I had withholding in 2016, about 800 Baht but just let it go, and then this TY from August 2017, after "the change" on Krungsi w/h policy.  You ever try filing a previous, missed year return?

 

It's not billions, it's millions.  And even more of a let down, it's measured in Satang, not Baht!   I'll catch up to you and your buddies in the Real Deal Baht Millionaire Club.  Buy me a black Fortuner, and double park in front of 7-11 with impunity.... it's gunna be great! 

[JimGant]

Quote

We went and the clerk with my documents asked questions and seemed unsure, so she called a Supervisor over who said she would have to verify my home country's tax treaty/agreement with Thailand.

Interestingly, if you're a US snowbird, and live here 179 days, or less, the tax treaty says Thailand can withhold 15% at source, with no refund option, just a tax credit on your US tax filing. The fact that one tax office is investigating tax treaty language is refreshing (from a Thai perspective). Getting a tax credit for such a withholding (if that's all we're talking about in total) is easy -- no Form 1116 required (if less than $600 married). Tax payment totals come out the same (unless you have little US taxable income, in total).

 

This is the same as for the Thai national, living full time in Thailand, with US CD investments. Withholding at source for this interest is also 15% (after he submits his W8BEN Form to the withholding agent -- 30% otherwise). Then, he too gets a tax credit -- on the Thai end -- assuming he has enough total income to require a tax filing.

 

Live here 180 days or more?:

Quote

From Form 1116 (Foreign Tax Credit) instructions:

[No foreign tax credit for] Taxes paid to a foreign country that you don't legally owe, including amounts eligible for refund by the foreign country. If you don't exercise your available remedies to reduce the amount of foreign tax to what you legally owe, a credit for the excess amount isn't allowed.

Kinda says if you're a Thai resident for tax purposes, but don't owe any Thai taxes, including taxes on your withheld interest income, then you're not eligible for a US tax credit. But what if some bureaucratic office keeps stonewalling you......? Get a document as to why they're not paying you -- then take the US tax credit. After all, you DID try to exercise a remedy to reduce your foreign tax. (Yeah, I know -- just try and get such a document from a Thai tax official..... Sigh).

 

 

[Monkie Business]

Just an update 

 

I checked on the Government Tax office web site to see if my tax refund information that had been entered on my local small tax office computer had actually been registered on the government tax office / system.

'it seems that it had been entered .

 

Item A  = My tax ID number
Item B = My first name and family name 
Item C =  Date information was received 
Item D = Stage 1   information now on system
Item E = Stage 2    processing 
Item F =  Stage 3   approved / not approved 
Item G = Stage 4    money cheque sent
Item H = Stage 5    money received 

So now I have to keep checking the web page to see the progress. 

 

.

[Pib]

Assuming they send you a check, Stage 5 will not turn green until you cash the check at the bank and approx a day or two later it clears the bank which also updates the govt system if I remember right when I monitored the site for my returns. 

 

And the check can only be deposited in your bank account (has a banner on the check saying such); not cashed immediately at the bank counter and then walk out the door with the cash. 

 

That rule came about after 55Jay cashed one of his billion stang refund checks and was then robbed just outside the bank.  So now, the money must be deposited to your account...if you come take out the cash a day or two later then it don't get press attention as a tax refund being stolen; instead, it's just a common, everyday robbery/mugging.   

Edited January 10, 2018 by Pib

[Monkie Business]

14 hours ago, Pib said:

Assuming they send you a check, Stage 5 will not turn green until you cash the check at the bank and approx a day or two later it clears the bank which also updates the govt system if I remember right when I monitored the site for my returns. 

 

And the check can only be deposited in your bank account (has a banner on the check saying such); not cashed immediately at the bank counter and then walk out the door with the cash. 

 

That rule came about after 55Jay cashed one of his billion stang refund checks and was then robbed just outside the bank.  So now, the money must be deposited to your account...if you come take out the cash a day or two later then it don't get press attention as a tax refund being stolen; instead, it's just a common, everyday robbery/mugging.   

Does that mean that you can '' only ''  deposit the check in the same bank account where the refund came from?

 

 

[Monkie Business]

Update 

 

[Pib]

No...you can take the check to "your" bank for deposit.