Krungsi - Mee Tae Dai Savings

[scubascuba3]

I recall on the other thread that i can't find that this account pays gross? Anyway, they've deducted tax, any way i can stop the tax being deducted?

 

Someone mentioned if interest is under circ 20k a year its paid gross?

[Pib]

 

See page 12 regarding MTD details....give interest rate (currently 1.3% for the balance you probably have), account details, etc.  No, you can not stop the tax withholding once gross interest exceeds Bt20K per year.  

https://www.krungsri.com/bank/getmedia/18e0cf3a-3024-429a-a7ad-6705802f3b9d/Deposit-Rates-22012019.aspx

[scubascuba3]

 
See page 12 regarding MTD details....give interest rate (currently 1.3% for the balance you probably have), account details, etc.  No, you can not stop the tax withholding once gross interest exceeds Bt20K per year.  
https://www.krungsri.com/bank/getmedia/18e0cf3a-3024-429a-a7ad-6705802f3b9d/Deposit-Rates-22012019.aspx

I've only just opened the account but they have deducted tax on the interest already, why would they do that?

[Pib]

20 minutes ago, scubascuba3 said:

1 hour ago, Pib said:

 
See page 12 regarding MTD details....give interest rate (currently 1.3% for the balance you probably have), account details, etc.  No, you can not stop the tax withholding once gross interest exceeds Bt20K per year.  
https://www.krungsri.com/bank/getmedia/18e0cf3a-3024-429a-a7ad-6705802f3b9d/Deposit-Rates-22012019.aspx

I've only just opened the account but they have deducted tax on the interest already, why would they do that?

If you haven't earned any interest (you are paid interest monthly)I can't see how they could deduct tax unless maybe you have some other Krungsri accounts because interest withheld is based on the aggregate of all like accounts...exceed Bt20K interest earned and tax can start hitting all like accounts. 

 

You sure you are reading your ibanking/passbook correct?   I say that because just about a week ago a TV member made a post asking why he was only getting back approx Bt4K in tax refund when Bt50K tax had been withheld...but then he said "nevermind" as it was Bt50K interest he had earned and 4K tax had been withheld.   Basically he had misread his passbook...got it backwards.  

[scubascuba3]

If you haven't earned any interest (you are paid interest monthly)I can't see how they could deduct tax unless maybe you have some other Krungsri accounts because interest withheld is based on the aggregate of all like accounts...exceed Bt20K interest earned and tax can start hitting all like accounts. 
 
You sure you are reading your ibanking/passbook correct?   I say that because just about a week ago a TV member made a post asking why he was only getting back approx Bt4K in tax refund when Bt50K tax had been withheld...but then he said "nevermind" as it was Bt50K interest he had earned and 4K tax had been withheld.   Basically he had misread his passbook...got it backwards.  

Although I've only had the account around 1 week, i guess the monthly interest cycle just finished. What do you think?

[Pib]

I think you need to go visit your branch as ask.  I get around Bt1,400 interest each month....no interest deduction.  Bt1400 x 12 months is Bt16,800 which does not exceed Bt20K per year so no tax withholding.

 

And I just gotta ask, you sure you have a MTD account or some other account like fixed account paying interest monthly.

 

 

[scubascuba3]

I think you need to go visit your branch as ask.  I get around Bt1,400 interest each month....no interest deduction.  Bt1400 x 12 months is Bt16,800 which does not exceed Bt20K per year so no tax withholding.
 
And I just gotta ask, you sure you have a MTD account or some other account like fixed account paying interest monthly.
 
 

Yes its meant to be the MTD, he had the info sheet on the desk when he opened the account. I'll check they haven't made an error somewhere

[scubascuba3]

I think you need to go visit your branch as ask.  I get around Bt1,400 interest each month....no interest deduction.  Bt1400 x 12 months is Bt16,800 which does not exceed Bt20K per year so no tax withholding.
 
And I just gotta ask, you sure you have a MTD account or some other account like fixed account paying interest monthly.
 
 

i checked with two branches, its definitely a MTD account. New policy that they deduct 15% tax. Apparently rolling out to existing accounts. Said i can claim back from tax office and they will provide paperwork.
I can't say i fancy another Immigration/Transport type experience trying to get a refund

[Pib]

i checked with two branches, its definitely a MTD account. New policy that they deduct 15% tax. Apparently rolling out to existing accounts. Said i can claim back from tax office and they will provide paperwork.
I can't say i fancy another Immigration/Transport type experience trying to get a refund

Well if they start hitting me with a 15% withholding tax on my 4 year old MTD acct I'll go back to putting by retirement extension of stay money in a higher paying fixed account since I'll need to apply for a tax refund either way.

[baggies666]

I checked my end of month statement (feb) and had no tax deducted so this is very strange

[scubascuba3]

I checked my end of month statement (feb) and had no tax deducted so this is very strange

It makes sense its a change in policy, the staff didn't know about it and phoned customer service.

He did say it will be applied to existing accounts slowly. But i wouldn't be surprised if its just new accounts TiT

[55Jay]

Good heads up on this, thanks for posting. 

[baggies666]

Well 3 nearly months ago when this was posted I thought mistake but I have been watching my account and today for the 1st time well below the 20k limit they have stated to take tax at 15%, this is very bad news as now the 800.400k earning even less and I have to learn how to recliam tax.

[scubascuba3]

Well 3 nearly months ago when this was posted I thought mistake but I have been watching my account and today for the 1st time well below the 20k limit they have stated to take tax at 15%, this is very bad news as now the 800.400k earning even less and I have to learn how to recliam tax.

Krungsi print the tax paid forms out for you easy enough. When you work out the process for reclaiming maybe let us know

[Pib]

Well 3 nearly months ago when this was posted I thought mistake but I have been watching my account and today for the 1st time well below the 20k limit they have stated to take tax at 15%, this is very bad news as now the 800.400k earning even less and I have to learn how to recliam tax.

Me too...the acct is around 5 years old...well below 20K interest earned per year....tax withheld for the first time today.

Guess I'll make a visit to my Krungsri branch at the Chaeng Wattana/Bangkok immigration building and see if there is any way to prevent tax from being withheld.

While getting a refund is not a hard process with your local tax revenue office as I use to do it for fixed accounts I use to have I still prefer not to have to do it....going to the branch to get the annual tax withholding doc and then filing for a refund at the tax office.

[scubascuba3]

Guess I'll make a visit to my Krungsri branch at the Chaeng Wattana/Bangkok immigration building and see if there is any way to prevent tax from being withheld.

i tried in two different branches in Pattaya and both said they couldn't. The first branch indicated this is for foreigners only

[Pib]

42 minutes ago, scubascuba3 said:

i tried in two different branches in Pattaya and both said they couldn't. The first branch indicated this is for foreigners only

 

I very well could be.....or the MTD account got reclassified as a hybrid "fixed" account requiring the 15% interest tax withholding whether farang or Thai. 

 

Or, maybe if the bank has your Thai tax number onfile they will not withhold the tax.  I say this because years back on the Bangkok Bank website they talked about how withholding tax could be avoided on certain accounts if you provide the bank your Thai tax ID number.    I have such a tax ID number from my years of filing for fixed account withholding refunds.  If I remember right it's the same as my Yellow Book number....will pull both of then out of the same and look later.

 

Anyway, some time this coming week I will visit my Krungsri branch to see what story they tell me...I will take along my Thai tax ID card just in case providing the tax number can stop the automatic withholding.

 

 

[Pib]

Visited my Krungsri branch today and asked why tax is being withheld from my MTD account since I earn less than Bt20K interest per year.  The rep seemed surprised...looked at my account and interest earned and the first tax withholding for a few hundred baht that occurred a few days ago....and made sure I didn't have multiple accounts where aggregate interest could have been the cause (I only have one account).... and then the rep made a call and talked to her supervisor for more info. 

 

Rep found out if you are classified as a "Thai and a resident" your account record  is coded not to incur a 15% tax withholding until exceeding Bt20K interest earned per year.  But if classified as "foreigner and a resident" with no Thai tax ID number onfile then the 15% tax withholding applies for any amount of interest earned...that is, even when earning less than Bt20K interest per year.  

 

IMPORTANT NOTE: I do not know if this applied only to the MTD account which is a hybrid type fixed account or would even apply to a regular Krungsri savings account....I failed to ask that as the only account I have with Krungsri is the MTD account....I just wanted to stop the tax withholding on that account if allowed...and it was if you have a Thai tax ID number which I do.

 

So, I provided my Thai tax ID number.  I took along my tax ID card and tax office receipts showing the tax number from previous years filings as proof (previous filings for fixed account tax refunds)...and they needed that proof to confirm that was indeed my tax ID number versus a bogus number.  With that proof they recoded my account to not withhold tax on less than Bt20K interest earned per year...like what I've been use to.

 

What they recode is a specific data field in your account record called "Tax Pointer" which has the following 5 possible settings for various types of accounts.  I was recoded from 005 to 001.

 

001 = 0 or 15% which means 0% tax withholding on Bt20K or less interest earned/year OR 15% when over Bt20K interest earned/year. 

002 = 0%

003 = 1%

004 = 10%

005 = 15%

 

I was given a printout of Old Data and New Data reflecting my tax withholding status and as mentioned in now shows I'm coded a 001.   

 

So, hopefully the MTD interest payment coming at the end of June will not incur the 15% tax withholding like the end of May payment did....that will be the absolute proof what they did today stopped the tax withholding. Otherwise, I will need to visit them again.....but hopefully that need will not occur...the Krungsri rep helping me today was very helpful and professional and the supervisor was also involved in making the change.

 

I thought a Tax ID number might be the key before going to the branch because I remember reading on the Bangkok Bank website years ago that providing your Tax ID number can affect your tax withholding status with the bank as in preventing tax withholding in certain cases/for certain kinds of accounts.   This was info in general about tax withholding on bank accounts. Ain't got a clue if that info is still somewhere on their website.  

 

And since I'm unclear if this Krungsri MTD tax withholding issue was just a Krungsri policy change for the MTD account since it's a hybrid type fixed account OR this is a tax revenue department policy change affecting "all" types of accounts....even a regular savings account where you usually get paid interest twice a year in Jun and Dec, this week I'm also going to visit my Bangkok Bank branch to talk this issue.  See what tax status they have for me...do they plan to withhold tax on me since I have multiple regular savings account with them in my name only and joint with the Thai wife.  Since Bangkok Bank pays interest in mid Jun and Dec for regular savings accounts and if such accounts are also affected hopefully I can cut off tax withholding by providing Bangkok Bank my Thai tax ID number.  

 

FYI....your result may vary.

 

 

 

[SiamAndy]

13 minutes ago, Pib said:

Visited my Krungsri branch today and asked why tax is being withheld from my MTD account since I earn less than Bt20K interest per year.  The rep seemed surprised...looked at my account and interest earned and the first tax withholding for a few hundred baht that occurred a few days ago....and made sure I didn't have multiple accounts where aggregate interest could have been the cause (I only have one account).... and then the rep made a call and talked to her supervisor for more info. 

 

Rep found out if you are classified as a "Thai and a resident" your account record  is coded not to incur a 15% tax withholding until exceeding Bt20K interest earned per year.  But if classified as "foreigner and a resident" with no Thai tax ID number onfile then the 15% tax withholding applies for any amount of interest earned...that is, even when earning less than Bt20K interest per year.  

 

IMPORTANT NOTE: I do not know if this applied only to the MTD account which is a hybrid type fixed account or would even apply to a regular Krungsri savings account....I failed to ask that as the only account I have with Krungsri is the MTD account....I just wanted to stop the tax withholding on that account if allowed...and it was if you have a Thai tax ID number which I do.

 

So, I provided my Thai tax ID number.  I took along my tax ID card and tax office receipts showing the tax number from previous years filings as proof (previous filings for fixed account tax refunds)...and they needed that proof to confirm that was indeed my tax ID number versus a bogus number.  With that proof they recoded my account to not withhold tax on less than Bt20K interest earned per year...like what I've been use to.

 

What they recode is a specific data field in your account record called "Tax Pointer" which has the following 5 possible settings for various types of accounts.  I was recoded from 005 to 001.

 

001 = 0 or 15% which means 0% tax withholding on Bt20K or less interest earned/year OR 15% when over Bt20K interest earned/year. 

002 = 0%

003 = 1%

004 = 10%

005 = 15%

 

I was given a printout of Old Data and New Data reflecting my tax withholding status and as mentioned in now shows I'm coded a 001.   

 

So, hopefully the MTD interest payment coming at the end of June will not incur the 15% tax withholding like the end of May payment did....that will be the absolute proof what they did today stopped the tax withholding. Otherwise, I will need to visit them again.....but hopefully that need will not occur...the Krungsri rep helping me today was very helpful and professional and the supervisor was also involved in making the change.

 

I thought a Tax ID number might be the key before going to the branch because I remember reading on the Bangkok Bank website years ago that providing your Tax ID number can affect your tax withholding status with the bank as in preventing tax withholding in certain cases/for certain kinds of accounts.   This was info in general about tax withholding on bank accounts. Ain't got a clue if that info is still somewhere on their website.  

 

And since I'm unclear if this Krungsri MTD tax withholding issue was just a Krungsri policy change for the MTD account since it's a hybrid type fixed account OR this is a tax revenue department policy change affecting "all" types of accounts....even a regular savings account where you usually get paid interest twice a year in Jun and Dec, this week I'm also going to visit my Bangkok Bank branch to talk this issue.  See what tax status they have for me...do they plan to withhold tax on me since I have multiple regular savings account with them in my name only and joint with the Thai wife.  Since Bangkok Bank pays interest in mid Jun and Dec for regular savings accounts and if such accounts are also affected hopefully I can cut off tax withholding by providing Bangkok Bank my Thai tax ID number.  

 

FYI....your result may vary.

 

 

 

Thanks for the helpful info Pib. I had the same experience as ScubaScuba3 in that Krungsri told me they could not stop the withholding on a MTD account. They did mention that it was a new policy in their bank, no mention of it being a tax revenue department policy. Can you provide some details on how to get a Thai tax ID? Was it a long process?

 

[Pib]

5 minutes ago, SiamAndy said:

Thanks for the helpful info Pib. I had the same experience as ScubaScuba3 in that Krungsri told me they could not stop the withholding on a MTD account. They did mention that it was a new policy in their bank, no mention of it being a tax revenue department policy. Can you provide some details on how to get a Thai tax ID? Was it a long process?

 

Go to your local tax revenue office and apply. 

 

I got my tax ID number over 6 years ago when I had some Bangkok Bank "fixed" accounts...and with fixed accounts the 15% tax withholding is automatic for any amount of interest earned and regardless of being Thai, farang, Martian, etc.  

 

So, the first year (or maybe it was the second) I went to fill for a tax refund with my local tax revenue office I got a tax ID number issued during that refund filing process.  But you don't have to wait until you file a tax refund frequent during Jan-Mar of each year which is when Thai tax returns/refunds are applied for.

 

Below thread talks tax refunds/Tax ID number...many peoples' experiences with their local revenue office in getting a tax ID number and refund....not a hard process.

 

 

[scubascuba3]

Go to your local tax revenue office and apply. 
 
I got my tax ID number over 6 years ago when I had some Bangkok Bank "fixed" accounts...and with fixed accounts the 15% tax withholding is automatic for any amount of interest earned and regardless of being Thai, farang, Martian, etc.  
 
So, the first year (or maybe it was the second) I went to fill for a tax refund with my local tax revenue office I got a tax ID number issued during that refund filing process.  But you don't have to wait until you file a tax refund frequent during Jan-Mar of each year which is when Thai tax returns/refunds are applied for.
 
Below thread talks tax refunds/Tax ID number...many peoples' experiences with their local revenue office in getting a tax ID number and refund....not a hard process.
 
 

When you apply for a tax ID do they expect you to do a tax return every year? and you only include income generated in Thailand i.e. bank interest?

[Pib]

14 minutes ago, scubascuba3 said:

When you apply for a tax ID do they expect you to do a tax return every year? and you only include income generated in Thailand i.e. bank interest?

You are not expected....you only file a return if needed (like to get a bank tax withholding) or you are required due to working in Thailand.   For the 4 or so years I applied for a refund the only "Thailand income" I had was from Thai bank interest as all my other income was from US pensions/income---not taxable in Thailand....taxable in the US.    Thai revenue office did not care about income for outside Thailand. 

[asiaexpat]

Bangkok Bank has been withholding 15% tax on my Fixed accounts for years. I claim a refund each year. I will approach BBL about the tax ID number as Pib mentioned.

[Pib]

Bangkok Bank has been withholding 15% tax on my Fixed accounts for years. I claim a refund each year. I will approach BBL about the tax ID number as Pib mentioned.

Tax ID will not help you for a traditional fixed account as the 15% withholding is a requirement regardless of being Thai or farang...resident or non-resident.

The Krungsri MTD is not a traditional fixed account.

[Orton Rd]

wish I had read this thread before going to the Krugsri Bank. They are now taxing me on my Mai Tai Dee account even though interest is only about 900 baht a month, had the 800k in there for four years. It took a lot of asking why they had just started deducting tax after four years. Eventually the answer was only 'for foreigner'

We called 1272 and they said they knew nothing about it but would call back, they did not, customer service said they only stop tax if over 20k interest. So this is a new policy for foreigner started in May or not?? My bank blamed the revenue dept.

[skatewash]

25 minutes ago, Orton Rd said:

wish I had read this thread before going to the Krugsri Bank. They are now taxing me on my Mai Tai Dee account even though interest is only about 900 baht a month, had the 800k in there for four years. It took a lot of asking why they had just started deducting tax after four years. Eventually the answer was only 'for foreigner'

We called 1272 and they said they knew nothing about it but would call back, they did not, customer service said they only stop tax if over 20k interest. So this is a new policy for foreigner started in May or not?? My bank blamed the revenue dept.

Pib explains exactly what is happening and how to fix it here:

https://forum.thaivisa.com/topic/1087601-krungsi-mee-tae-dai-savings/?do=findComment&comment=14212205

 

[Pib]

22 hours ago, Pib said:

Since Bangkok Bank pays interest in mid Jun and Dec for regular savings accounts and if such accounts are also affected hopefully I can cut off tax withholding by providing Bangkok Bank my Thai tax ID number.  

Went to my Bangkok Bank branch today on Silom Rd in Bangkok (in the HQ Bangkok Bank building) to talk the tax withholding thing.  That is, would it apply to my "regular savings" accounts with Bkk Bk.  I'm not talking fixed or other type of special savings accounts where different tax withholding rules apply like 15% tax interest withholding on a traditional fixed account. 

 

Told the rep my Krungsri story as background.  The rep said tax would "not" be withheld unless exceeding Bt20K interest earned per year....applies to Thai or farang.  Rep said what I experienced at Krungsri must have been unique to the MTD account which is probably not considered a regular savings account....a policy change with the MTD account. 

 

The Bkk Bk rep said for a "regular" savings account earning Bt20K or less interest per year Thai banks will send interest earned data to the Thai Revenue Dept and then if the Revenue Dept determines a tax withholding must apply they will notify Bkk Bk who in turn will notify the customer by letter that tax is going to be withheld.   If a customer does not want their interest info to be sent to the Revenue Dept then the bank must apply the 15% tax withholding on interest earned.  This is in-sync with what I read in the newspaper last month for a typical savings account.

 

I said OK....but if come later this month when Bkk Bk pays out interest on my regular savings accounts (paid in mid-late Jun and Dec each year) that tax is indeed withheld I'll be back for further discussions.  But I don't expect any tax will be withheld. 

 

Plus the amount I maintain in my Bkk Bk regular savings accounts combined with the low interest of only  0.5% I only earn a few hundred baht interest every 6 months...a 15% withholding of that probably would only be around Bt150 for 6 months of interest.  Quite a bit lower than my much higher interest paying Krungsri MTD account (which I call a hybrid account) where I keep my retirement extension of stay Bt800K money plus extra money for emergencies. 

 

 

 

[Henryford]

Yes odd for the first time my MTD interest has 15% tax deducted this month, and i earn well under 20k a year. Looks like a trip to Krungsri to ask why things have changed.

[Orton Rd]

Here is the reply Krungsri sent me today, seems the branch staff could do with some training, or at least be given information, I was told only foreigners were being stopped tax, but that is wrong:

 

Starting May 2019, it is required by Thai law from Revenue Department of Thailand that everyone in Thailand ,both Thais and foreigners, who have deposit accounts with earned interests must pay tax. However, if interests earned is less than THB 20,000, you will not be deducted for tax payment , but you must present your Tax ID card at Krungsri branch for the deduction records.
 
Everyone who is employed in Thailand will get tax ID card, please present such tax ID to branches for records on tax deduction if  interests earned are less than THB 20,000 as mentioned above.
If you do not have such tax ID, you will be deducted for tax payment on interests, as  interests are deemed as income.
 

[Pib]

1 hour ago, Orton Rd said:

 
Everyone who is employed in Thailand will get tax ID card, please present such tax ID to branches for records on tax deduction if  interests earned are less than THB 20,000 as mentioned above.
If you do not have such tax ID, you will be deducted for tax payment on interests, as  interests are deemed as income.
 

I would question the part about "everyone", Thai or farang, will have interest deducted even if earning less than 20K interest per year "for all accounts" although that was indeed the revenue dept position a few months ago, but in late April the Thai Bankers Assn and Thai Revenue Dept reached a different agreement.   Krungsri's answer above may have been based on the earlier revenue dept policy announcement and not the agreement reached between the banker's assn and the revenue dept.

 

That agreement was in those cases where interest earned is less than 20K/yr that the banks would provide that info to the revenue dept and then if the revenue dept determined you were earning more than 20K interest "due to aggregate interest from other bank accounts" then the revenue dept would notify the bank that tax must be withheld and the bank will notify the person by letter of such change. 

 

That's how I read it Bangkok Post news reporting (that can be googled) on the issue and is in-sync with what the Bangkok Bank rep told me a few days ago....see my earlier post on my visit to Bangkok Bank to talk my regular savings account....not my earlier post about what Krungsri Bank told me regarding the Krungsri account where I was able to get the tax withholding stopped by providing my Thai tax ID number.   At Bangkok Bank they were not interested in seeing my Thai tax ID number....said it's not needed...don't worry as no tax will be withheld on a regular savings account earning less that 20K interest per year unless the revenue dept comes back later and says to withhold tax.

 

But as mentioned in my post regarding my Bangkok Bank visit I will not be fully convinced what they told me is 100% accurate until after mid year interest is paid later this month (June).  If no interest is withheld, then they told me the truth....if interest is withheld I will need to go back to ask why they told me an untruth. 

 

And it could very well be that Krungsri is beating around the bush in their answer simply because they have changed their interest withholding policy on the MTD account....treating it more like a fixed account now unless you can provide a tax tax ID number.   Some of the fine print of the Thai Bankers Assn and Thai Revenue Dept agreement....fine print that affects Thais and farangs a little differently as TIT.

 

Yeap, once I see if Krungsri indeed stopped the tax withholding come the end up June interest payment "AND" Bangkok Bank does not withholding any tax on my regular saving account come the mid year June interest payment I will know whether what both banks told me is true or not.   It can be very frustrating in trying to get an answer you feel comfortable with....feel it's totally true.  TIT