Reader question: Paying or receiving tax in Thailand?
Dear readers,
This week I received a thick envelope from the Thai tax authorities containing an assessment form “income tax”. Now I had just applied for (and received) a tax card last year and this number was also stated on this assessment form.
I slept badly after all, because yes, what do you do with a form, completely in Thai of course, just as readable to me as Chinese to a dyslexic monkey in Artis. Armed with the necessary papers and 'gathered knowledge on the internet', but with a heavy heart, to the tax office.
Too bad, too bad, the lady who spoke 'English' referred me to my bank, because of the interest received. I was given her phone number and the bank employee had a good conversation with her. I received a printed form, which stated the 'gross' interest and the 15% tax paid. For simplicity, say 20.000 baht gross interest, with 15% withheld = 3.000 baht tax, so 17.000 baht net interest total on bank statements.
With this printout back to the tax office, after which the female official went to work. As a result, note that within 3 months I receive a check from the tax authorities for 3.000 baht…. Admittedly reduced by 32 baht costs, but a moan that pays attention to that.
Who knows how and why this is so, can you explain it to me? The 'Hedgehog' explanation of the Thai employee was, for me at least, the same story of that monkey in Artis.
Regards,
Willem
Your taxable income in Thailand therefore remains under the exemption.
So there is a refund.
I feel like the rest of his income has been left out.
You probably paid more tax than you owed on your savings.
In the worst case, you will only pay tax with an income of 90.000 + 150.000 = 240.000 Baht.
I will call those 90.000 exemption and those 150.000 the first rate bracket of 0%.
I do this, because the 150.000 is with the other drives and could therefore theoretically change to, for example, 1%.
Suppose you had no further income, you only owe tax on your savings interest.
However, the bank has levied a withholding tax of 15% on this.
Because your total taxable income in your example was only 20.000 Baht and you only have to start paying more than 240.000 Baht, you have paid that tax on the savings interest too much.
So you got it back.
The tax paid on the interest received on a deposit account, so no ordinary savings account can be refunded from the tax authorities. I did not receive a message from the tax authorities, but I completed a refund form myself (with help from the tax office). And later received a check with the tax paid on the interest returned. I assume that you are also concerned about this refund.
The tax paid on the interest received in a deposit account, no ordinary bank account can be received back from the tax authorities. This will have been the case with you. I have paid the tax on the interest back myself, only I have completed the relevant form with the help of a tax officer. For this I also needed a form from the bank stating how much interest was paid on which amount. I have not received a form for this from the tax authorities.
Nothing strange about it: I've been doing it this way for years. It concerns interest income from savings and deposit accounts, not being a current account. The box withholds tax on that income. Can be read in the bank book, if an annual update is made of the interest credited.
If you are known to the Thai tax authorities, you can come by yourself before March 1 of the current year because of the refund. See further previous comments.
@Han: if you pay tax on your pension in the Netherlands, this (part of your) income will remain untaxed in Thailand. You don't have to give up either. AOW is always taxed in the Netherlands and cannot be awarded to Thailand. If you have other sources of income in addition to these 2 sources, please make your own calculation based on the Thai tax brackets. The Thai tax authorities can help you with regard to which deductions can be made. For example, some premiums for health and life insurance are deductible, overpaid dividend taxes, and, for example, maintenance costs for wife, family and relatives.