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Home » Reader question » Reader question: What are the consequences of 800.000 Baht in a Thai bank for income tax?
Reader question: What are the consequences of 800.000 Baht in a Thai bank for income tax?
Posted in Reader question, Thailand in general
Tags: tax, Income statement, Visa
Dear readers,
Due to the tightening of the policy regarding the “Declaration of Income” I am considering, to get rid of the hassle about this, to put the well-known amount of 800.000 Baht in a Thai bank. I wonder what effect such a transfer can have on the income tax to be paid in Thailand (I am registered with the Revenue Department).
The 'body' of the amount is not intended for consumption, after all it must be maintained for subsequent years. Taxation is therefore questionable in my opinion.
Maybe there are experts with experience with wise advice?
Many thanks!
Regards,
Roast ice cream
The interest is charged at source. I have had 8 euros for years and no one has come to my door with a tax bill. By the way, why only the 8 tons? The regular bank account is also visible to the government.
If you have no further income and live off your assets (possibly built up in the past), you are doing yourself a disservice because you could reclaim the withholding tax paid from the Thai tax authorities. I once read a response here in this blog in which the commenter had received a refund of 15% withholding tax paid on interest income. Even retroactively, even over a number of years.
The bank withholds 5% tax on the interest received on a bank account and transfers it to the revenue office.
A refund of this paid tax is only possible on fixed accounts, refunds can be made up to three years ago.
You need a Tax identification number (TIN), if you don't have this you can get one at the revenue office. Bring a residence certificate from the immigration office and passport for this purpose.
At the bank where you have a deposit, or several, you can obtain an official tax claim form at the end of the term. For this purpose, bring the relevant bank book, passport and tin card.
Then to the revenue office, bring your tin card, bank book and official tax claim form. There they can help you fill in the claim form. A few months after completing the form, you will receive a bearer check in your mailbox.
A fixed account is not allowed at every immigration office, so ask if this is possible.
the banks in Thailand withhold 15% tax on the interest payment.
This applies to non-residents. I am a resident because I live here 180+ days a year. Incidentally, with the current generous bank interest rates, it is about peanuts…..
After having a fixed account for three years (800000 THB), I received more than 11000 THB back from the revenue office. Still a nice bonus and you don't have to do much for it. I also live here all year round, so 180+ days.
OK, I'm convinced. go after it in early January. Good tip, thanks everyone.
Wealth (money in a bank account) is not income (earned from work or pension, for example), every Thai official understands that. So if it is not income, but capital, it is also not taxable for the Thai income tax.
I would recommend that you consult with the tax authorities in advance.
This will save you problems later on.
This will undoubtedly depend on which tax officer you meet.
It is therefore better to arrange this in advance and have it put down on paper before you transfer the money.
55 very good question!
The money does come from yourself, but from the Thai government's point of view, that is 800.000 Baht income. Earlier this week or last week I read on Thailand blog that the name of the payer is not mentioned when a deposit is made to a Thai account. The payment would have a reference number.
Deposit 800.000 baht in one go? It is also not possible to bring cash. It is about 1 euros (21.200 baht/euro)!
Best in installments or partly cash or combination of both and spread over time (weeks / months). Anyway, is this income and is it taxable?
Can you prove that the money comes from yourself? Or does this not matter at all? You should certainly not count on tax deductions in your own country!
Would any readers have experience with this?
Feel free to bring cash, only report on departure and on arrival. Nothing to worry about, just show that it is fair money (by means of a receipt from the bank) and then you can take as much as you want.
You will not just take amounts such as 20.000 euros with you, and certainly not if it concerns a large part (such as half or more of your total saved amount). That rings many bells… And that is exactly reflected in Martin's response below.
It also involves many risks, such as loss or theft along the way…
Indeed, it is no problem to take it with you provided you submit this declaration form to customs
http://download.belastingdienst.nl/douane/docs/aangifteformulier_liquide_middelen_iud0952z4fol.pdf
And on arrival Thailand do the same at Thai customs, you will have no problem later, if you state intended for purchase condo (even if you do not intend to at that time) you can later, if you sell, even transfer your sum back to where you want without restriction.
Recently I have been called by the bank if I transfer a larger amount of what I am going to do with the money.
This had never happened before.
I've had 11 million baht in the bank for 1 years for immigration and cremation. get 2% interest every month
and have never had any problems. I pay 4% interest to the Thai tax authorities. The interest granted is credited to my account every month on the 1 million, after deduction of tax. Every bank does not like it when you withdraw money from your savings account.
Greetings Leen .Egberts. Now 81 years old.
Which bank is that that pays 2% interest per month? If you started with 11 million 1 years ago and you add 2 percent every month, you should already be at about 12 million.
Dear Frans, that is true, I receive 1.590 bath interest every month, I pay 250 bath tax, there have been years when I received 2000 bath interest, I live with a Thai, then you understand
that something needs to be removed. The sofa is the Thana heart sofa.
Regards, Leen.Egberts.
If there is 1 million Baht in an account and you receive 1590 Baht interest per month, that is 1.59‰ (promille) per month. 2% would be 20.000 Baht.
Started 11 years ago with 1 million and @ 2% interest and are now at 12 million, I don't know how you calculate that. I would like to invest my money with you 555555555555
Taking any amount more than 10.000 euros with you is no problem, register with customs at the airport upon departure, prove your origin, and do the same on arrival in Bangkok.
I don't think many bells can ring. You can also be afraid of farting again
2% interest per month, without compound interest, is already 24% per year.
That adds up considerably in 11 years.
I haven't counted it any further.
I was too lazy to open excel.
Dear Ruud, it remains 2% per month all year round on the entire amount on your account and not 12x 2%.
Greetings Leen.Egberts
Dear Fernand, started 12 years ago with 1 million300 thousand bath now the interest is 2%. Years ago it was almost 3% interest. I live with a Thai woman, so you know that sometimes something goes off. I have received 200.000 bath in interest in recent years, which is not a million as you claim.
Normally I get by on my S>V>B> and ABP benefits. The sofa is the Thana heart sofa.
Greetings Leen.Egberts
Thanks everyone for the responses. My question may not have been clear enough. It was not about tax on bank interest. The point is that if you transfer money to Thailand, you are in principle liable to pay taxes on it in Thailand. And at just over €20.000 (800.000 Bath), that's quite a lot. Hence my question whether this can perhaps be avoided. Thanks again.
As I said, check with the IRS beforehand.
In practice, savings are not taxed if you bring them into Thailand.
However, the problem is that Thailand (usually?) assumes that money you bring into Thailand is income, unless you prove that it is NOT income.
So before you send this money to Thailand, you should ask how you can prove that this money is savings.
I can imagine that you will have to show this later with your tax return with statements, where you then have the entire cash flow in sequence on paper.
For example:
An overview of changes in your savings account over 1 or 2 years (To show that it is savings)
Transactions:
Savings account to personal account.
Private account to Head Office in Thailand.
Head office received from the Netherlands.
Head office in Thailand to local bank.
Copies of the international transaction are also available upon request.
Then you have something more than just a savings bank booklet.
By the way, we are almost at the end of the year, so in extreme cases you can split the transaction in two.
One in the old year and one in the new year.
That is not true; INCOME that you post to Thailand makes you taxable provided that income is allocated to Thailand; savings are not income, although one may ask about the origin. Take a look at Thai law, it says exactly that. AOW and state pension taxed in the Netherlands are not income that may be taxed here. I've had 8 tons standing for years and never had a question.
Transferring money in itself is not taxable, what matters is whether the income is yes or no.
I still don't understand Braadijs' question, even after his clarification. Don't even know where he actually wants to go. I have been living in Thailand for years and have a fixed and a saving account here. I only use the fixed account as proof for immigration. I receive interest "annually" on which, when the interest is paid out, a certain % (small) withholding tax is charged on it and that means that the stocking is finished. My savings account, which I use for my daily maintenance here in Thailand, I also receive a small interest on "monthly", on which a % withholding tax is also charged on the monthly payment and that means this stocking is also finished. All this is done automatically by the banking institution here in Thailand.
In case I transfer money from my Belgian bank account to my Thai savings account, this is done via pc banking. I always keep this amount limited to 10.000Eu/transfer. Have never or ever received any question from any institution about that, or had to pay any form of extra taxes. Same with cash money. If I bring more than 10.000 Eu in cash, I simply declare this neatly at the customs office in Brussels at the airport. There is a standard form for this. Upon arrival in BKK I do the same and here too I have never been asked for any explanation or extra tax. So I don't understand the problem.
fiscus.fgov.be/interfdanl/nl/citizens/cash.htm
The formula is the same for both the Netherlands and Belgium.