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]

  On 1/10/2025 at 12:40 PM, Dezmo said:

Withholding Tax

Expand  

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

[butterfly]

could be annual interest rates tax withholding,

[Dezmo]

  On 1/10/2025 at 2:31 PM, rattlesnake said:

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

Expand  

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]

  On 1/10/2025 at 3:14 PM, 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.

Expand  

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]

  On 1/12/2025 at 11:09 AM, 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.  

Expand  

Still waiting for a response from the bank.

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

[AussieBob]

  On 1/13/2025 at 2:22 AM, Dezmo said:

Still waiting for a response from the bank.

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

Expand  

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]

  On 1/13/2025 at 3:05 AM, 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. 

Expand  

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 :)

[Dezmo]

So Bangkok Bank responded... but the last part about sending them a letter to "..NOT To submit.." is unclear.   

Also my interest did not exceed 20,000 b (they took 15% of the 1,600 paid in interest that day.

If I do send this letter, then I assume the tax is NOT taken from my interest... but will they want it later or is this just saving me time to later try to go get a refund (if applicable)?

In response to your inquiry about the withholding tax from the bank account, we wish to inform you that for residents of Thailand, including foreign national residents, interest income received from savings deposits is exempt from personal income tax when the total amount of interest received from all banks in a tax year does not exceed 20,000 baht. If the total interest from all your bank accounts exceeds 20,000 baht, the bank will transmit the interest income information to the Revenue Department.

If a depositor does not wish to submit the interest income information to the Revenue Department
- Please be advised that the bank is legally obligated to deduct a 15 percent withholding tax on all interest paid on savings deposits starting from the first baht.
- Depositors are required to notify banks of their intention in writing by completing the form titled 'Letter Indicating Intention Not to Submit Information Relating to Interest on Savings Account Deposit to the Revenue Department'.
To obtain more information regarding the withholding tax conditions of your account, please visit your home branch where the account was initially opened, along with your valid passport and passbook. Our branch officer will be able to provide further assistance accordingly.

[AussieBob]

  On 1/18/2025 at 5:22 AM, Dezmo said:

So Bangkok Bank responded... but the last part about sending them a letter to "..NOT To submit.." is unclear.   

Also my interest did not exceed 20,000 b (they took 15% of the 1,600 paid in interest that day.

If I do send this letter, then I assume the tax is NOT taken from my interest... but will they want it later or is this just saving me time to later try to go get a refund (if applicable)?

In response to your inquiry about the withholding tax from the bank account, we wish to inform you that for residents of Thailand, including foreign national residents, interest income received from savings deposits is exempt from personal income tax when the total amount of interest received from all banks in a tax year does not exceed 20,000 baht. If the total interest from all your bank accounts exceeds 20,000 baht, the bank will transmit the interest income information to the Revenue Department.

If a depositor does not wish to submit the interest income information to the Revenue Department
- Please be advised that the bank is legally obligated to deduct a 15 percent withholding tax on all interest paid on savings deposits starting from the first baht.
- Depositors are required to notify banks of their intention in writing by completing the form titled 'Letter Indicating Intention Not to Submit Information Relating to Interest on Savings Account Deposit to the Revenue Department'.
To obtain more information regarding the withholding tax conditions of your account, please visit your home branch where the account was initially opened, along with your valid passport and passbook. Our branch officer will be able to provide further assistance accordingly.

Expand  

I would think the wisest strategy to that confusing and very unclear letter is to do nothing and let it go.  When/if Thailand moves to a global taxation system, and when/if Thailand has a professional national level taxation department and system in place, then I would think about maybe changing things from how they are being done now.  Sleeping Dogs and all that.  Dead Horses comes to mind too.

[Dezmo]

  On 1/19/2025 at 7:14 AM, AussieBob said:

I would think the wisest strategy to that confusing and very unclear letter is to do nothing and let it go.  When/if Thailand moves to a global taxation system, and when/if Thailand has a professional national level taxation department and system in place, then I would think about maybe changing things from how they are being done now.  Sleeping Dogs and all that.  Dead Horses comes to mind too.

Expand  

I understand... just after working in banking before, and knowing the tricks to gather all sorts of fees, etc... (and who knows if they send it to the Gov :), I may ask about that letter... haha