Tax on transfer?

[Dezmo]

I have a Bangkok Bank account for about a year.     I just transferred over a large amount from my USA bank using Wise in late December and notice a Tax line item on my bank statement about a week later for about .3% of the that amount but not sure it's related.

Is there a new tax from the government I missed ?

[rattlesnake]

What does it say next to the debited amount on the statement?

[Dezmo]

Withholding Tax

[butterfly]

how big was the transfer in USD? did WISE said anything before the transfer?

[rattlesnake]

1 hour ago, Dezmo said:

Withholding Tax

 

What did you select as "reason for transfer" when asked by Wise?

[butterfly]

could be annual interest rates tax withholding,

[Dezmo]

42 minutes ago, rattlesnake said:

What did you select as "reason for transfer" when asked by Wise?

I forgot and the Details now do not show the reason. 

It was just a transfer to myself... so probably selected the closest.

But the tax is on my BB statement. I did email them too.

[rattlesnake]

1 hour ago, Dezmo said:

I forgot and the Details now do not show the reason. 

It was just a transfer to myself... so probably selected the closest.

But the tax is on my BB statement. I did email them too.

I wonder if it is related to the amount or to the reason selected in Wise. I suspect it may be the latter, as if you selected "wages" for instance, it is technically subjected to withholding tax (see source below).

I have been sending money to my Thai accounts (Kasikorn and Bangkok Bank) with Wise for years and always select 'Funds for a long term stay", I never noticed a withholding tax debited.

https://belaws.com/thailand/how-does-withholding-tax-work-in-thailand/

[Dezmo]

Ah I think it was Tax on the large Interest payment that was the line item just before???

[AussieBob]

I think it was Thai withholding tax on money earned from interest.  My BKB account also had a recent tax amount taken by the bank, and I have not transferred any money over for several months.  

[Dezmo]

15 hours ago, AussieBob said:

I think it was Thai withholding tax on money earned from interest.  My BKB account also had a recent tax amount taken by the bank, and I have not transferred any money over for several months.  

Still waiting for a response from the bank.

I assume it is not specific to foreigners and not refundable :)

[AussieBob]

28 minutes ago, Dezmo said:

Still waiting for a response from the bank.

I assume it is not specific to foreigners and not refundable :)

I was told by a lawyer that because of the legal status of Expats (Tourists) and the complications of income taxes, the banks in Thailand take the easy route and just tax the appropriate level of income tax and send to the Tax Office.  I believe that when a bank account is opened by an Expat that has a Work Visa and is employed, then that account has a different legal status when it comes to income taxes on interest earnings.  But as we long term Expats all know, how things are done in Thailand is different from bank to bank, and from province to province, and from branch to branch.

Definitely not refundable.  There is only one thing worse than telling a Thai in authority that they are wrong, and that is proving it - so as in most things, it is best to just let it go. 

[Mamachigawa]

I only have ever had basic savings accounts or fixed account. No WP I went to the tax office to file a tax return many time to get back the portion of tax withheld that is taken from foreigners automatically.  Just a couple hundred baths  a year. It is not worth it anymore and I wont be filing any more tax retuns. 

[AussieBob]

14 minutes ago, Mamachigawa said:

I only have ever had basic savings accounts or fixed account. No WP I went to the tax office to file a tax return many time to get back the portion of tax withheld that is taken from foreigners automatically.  Just a couple hundred baths  a year. It is not worth it anymore and I wont be filing any more tax retuns. 

Yes you can get it back from the Tax Office - if you want to go through all that trouble.  But the bank will never refund any such amount if taken out in error.  

When I found out what was required at the Tax Office to get the few hundred baht back, I did the same and decided not to proceed - life is too short.  

[Dezmo]

Agreed.. and i think the interest rates (basic checking account) are way better then in the USA (at the moment :)