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Home » Reader Submission » Tax (Withholding TAX) on interest on savings deposits at a Thai bank (reader's submission)

Tax (Withholding TAX) on interest on savings deposits at a Thai bank (reader's submission)

February 4 2024

Since I am only 52 and do not yet receive a pension, I live off my savings in Thailand. Now I noticed that 15% tax was withheld from the interest I received and I started looking further.

I came across some information on this site https://www.rd.go.th/english/6045.html I thought it was strange that I had a 15% withholding, but according to the tax brackets nothing had to be paid. It now appears that you can reclaim/deduct this money from your tax return.

I am not an expert and went to the municipality (of course with my wife). I received very good help there, the lady behind the counter created a tax number and sent me to my bank for a statement of the interest and tax paid by me.

Today she completed the tax return for me and if all goes well, I will soon receive the tax withheld by the bank back, so let's keep our fingers crossed...

Perhaps interesting for those who have virtually no tax income in Thailand or who have to pay less than 15% in tax.

Submitted by Leon.

Number of times read: 1.745

5 responses to “Tax (Withholding TAX) on interest on savings deposits at a Thai bank (reader submission)”

Keith 2 says up

5 February 2024 at 03: 02

It doesn't matter whether you pay "<15% tax" or not: Your tax bill will be reduced if you pay tax, and you will get a refund if you don't pay tax.
And of course you were at a regional tax office, not at the municipality.

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khaki says up

5 February 2024 at 09: 03

This interests me because I also receive interest on my THB 800.000 and the bank withholds the tax from it. Have you been helped by the municipality with your tax number? Which municipality, if I may ask.

khaki

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bennitpeter says up

5 February 2024 at 14: 22

Intriguing story. The bank withholds taxes even though you do not have a TIN.
The statement forces you to go to the tax authorities.
So if you don't do that, your tax bill will be floating around? Perhaps indexed by name and bank account?
However, you don't have to pay anything because of exemptions. If you don't do anything, you lose it.
Remarkable turn of events, European style?
This was actually already indicated in Mark Lister's guideline regarding the TIN.
You don't get a TIN, but you MUST go and get it. A forced action by simply taxing.
Not responding costs you.

It is also strange that everything would not be taxed before 2024. So you would only be taxed on January interest income, so it is not that much (unless you have a billion Baht on account).
It is not stated in the account, on which tax was paid, all of 2023?
So what about the pre-2024 scheme?

Now I assume that Leon will not pay any further tax on his interest in 2024 and in 2025 the sum will be made for tax. And you MUST ask for this again every year, depending on exemptions, by completing a Thai tax form.

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Lo says up

5 February 2024 at 15: 09

What is the frustration?
There is withholding tax for certain taxes and if that does not make sense, do not use the options. A society simply involves a system of taxation and withholding tax challenges Thais in particular to be included in the tax system. Not to pay for corruption, but to ensure that sufficient resources are provided to prevent an unliveable society. 20.000 baht interest income is exempt and with the current interest rate that is around 1.4 million baht on the better deposit accounts.
A phobia can always turn into assumptions that can then be translated into reality.
A foreign tax resident is also entitled to all kinds of deductions, so the soup is usually not eaten that hot and otherwise it must be arranged differently.
Of course, Thai tax rules are not based on what the frugal foreigner expected.

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bennitpeter says up

6 February 2024 at 15: 55

I don't see any frustration. The only frustration(?) could be that Thailand has started collecting without even officially elaborating on it.
Leon tells his story and that is not a phobia, not an assumption, but it is a fact.
Leon's account demonstrates the effectiveness of this introduction.
In this case the interest earned on savings in Thailand.
That (method) is what I simply indicate from Leon's account and nothing else.
That you are forced to take your own initiative by going to the tax authorities and applying for a TIN and filing a tax return. get a refund.

I can't make it more fun...

Tax systems were once about a livable society, but now that is completely different.
For example, Thailand suddenly wanted submarines, mountains of problems and a little later they wanted to exchange the submarines for normal boats. Yes, smart. Seems like the Netherlands.
Besides, who pays for 39 privately owned aircraft? Farang?
Thailand had been able to tax for years, but this only started after an EU delegation traveled to Thailand. Mmmm.
And it seems that Thailand is ignoring “pre 2024”, 15% has been withheld, and they are collecting over the whole of 2023. So Leon has captured more than 2023 Baht in interest in 20000.
20000 baht in 1 month (2024) seems a lot to me, although.. 12 million in the bank?
ok not mentioned.

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Tax (Withholding TAX) on interest on savings deposits at a Thai bank (reader's submission)

5 responses to “Tax (Withholding TAX) on interest on savings deposits at a Thai bank (reader submission)”

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