Interest Earned In Thai Bank Accounts

[pdogg]

I was told today that the first 20,000 baht of interest earned per year per account in Thai bank accounts is not taxable in Thailand.

 

It was a bit unclear, if one earns more than 20K in interest is the first 20K taxable setting up a situation where it is better to earn 19,999 baht a year than 20,001

 

Anyone know about this?

 

Of course this interest may be taxable in your home country depending where you live.

[azza33]

The Thai tax authorities have issued guidelines on the criteria for withholding tax on the payment of interest to individuals (Director-General Notification No. 181).

Interest income derived by individuals from savings accounts in commercial banks operating in Thailand that does not exceed THB 20,000 per annum is exempt from personal income tax. Nonetheless, the Thai Revenue Department requires banks to withhold tax at a rate of 15% on such interest payments because many individuals maintain multiple saving accounts. This results in an additional tax burden for some taxpayers in that they must request a tax refund at the time the annual personal income tax return is filed.

The new guidelines provide as follows:
- Where an individual derives interest income from multiple accounts with more than THB 20,000 in the aggregate, the individual must inform the banks paying the interest to withhold tax at the 15% rate; and
- A bank paying more than THB 20,000 in interest to an individual taxpayer is required to withhold tax at the 15% rate at the time the interest is paid

 

 

Appears can be refunded at the local tax office:

 

Form Kor 10, Request of Refund of Tax Payment